68% of Americans receive medical care through private insurance, while 63% vote for public health care.
Politicians and citizens are arguing about the benefits of private vs. public health insurance. Each side claims that the other side is wrong. What is the difference? Which is better?
Continue reading to learn more about the differences between public and private health insurance.
Private Health Insurance
Private insurance refers to when individuals get insurance through private companies. This insurance is available to employees via their employers, but it can also be purchased by individuals.
Private healthcare has many advantages. Private healthcare offers more providers and doctors to choose from, as well as more flexible plans.
It is costly and some companies will reduce wages to pay for insurance. Many people are left without medical care and are unable to access medicine due to the high costs.
There are many types of private health insurance
Private health insurance can be purchased in a variety of ways, including fee-for-service, HMOs and PPOs.
Fee-for-service refers to traditional private insurance. Your provider will charge you monthly premiums that cover most of your health costs. However, certain services may be more expensive.
Prepaid health plans are Health Maintenance Organizations (or HMOs). A monthly premium is also required, but you still must be able to receive medical care at their facilities.
When you pay small co-payments and monthly premiums to Preferred Provider Organizations (or PPO), it means that you are paying a smaller amount. When you visit the doctor, co-payments will be paid. However, this does not limit the number of doctors or facilities that you can access.
Public Health Insurance
When the government offers insurance plans, it is called public health insurance. This allows low-income families and elderly people to get the medical care they need.
Public healthcare, unlike private, is funded by the government and taxes. Although the Affordable Care Act was created to assist those who are in need of government assistance, it makes up a large portion of government spending.
Public Healthcare Providers
The government can provide healthcare in three ways. These include Medicare, Medicaid, or CHIP.
Medicare is a federal program that provides insurance for seniors 65 years and older, as well as those with certain disabilities. Medicare Health Insurance Experts help to determine who is in greatest need and what they require.
Medicaid is a program for social insurance that’s funded both by the federal government and the states. However, it is administered at the state level. Medicaid provides coverage for millions of families with very low incomes.
Children’s Health Insurance Program (or CHIP) is for families and children who aren’t eligible for government assistance, but cannot afford private insurance. It fills in the healthcare gaps.
What is better: Public or private health insurance?
It’s not a discussion about which type of insurance is best, but rather about how to make them all work together.
Private and public healthcare insurance differ in that it is more expensive and not available to everyone. The public healthcare system is free, but only to those who really need it.