Economics Final Project Assignment Example | Topics and Well Written Essays - 500 words

Economics Final Project - Assignment Example These needs notwithstanding, health insurance coverage has not reached levels most expected by stakeholders. A number of reasons could account for this. As a way of addressing the situation, a number of health insurance policies exist to ensure that people can have options that best apply to their needs so that they would select these. One of the options is the high-deductible health plan (HDHP). The best way to argue on whether or not HDHP will lead to improved coverage is to look at the modalities involved in this type of health insurance plan. There are two broad modalities that can be identified in this context. In the first place, users selecting this option are required to pay much lower premiums than what may be called traditional health insurance plans (Yoo and Chen, 2009). The premium refers to that money that is paid upfront to the health insurance company on a monthly basis. This means that people opting for this would not be paying so much every month as compared to those selecting other traditional plans. On the other hand, these people are required to pay higher deductibles than in traditional health insurance plans (Henderson, 2012). These deductibles are the amounts that are paid for an insurer’s own medical care before the health insurance company come in to pay anything for the insurer. From the explanation given about the rationale based on which the HDHP works, it would be noted that people who visit the doctor less often and do not accrue much cost from their visits with the doctor would have the benefit of this plan. Meanwhile, Chang et al. (2006) argued that the healthcare population of the country is made up of more of such people than those with catastrophic health conditions. Should the greater percentage get the right counsel therefore, chances that a good number of the populace would opt for HDHP and thus increase the coverage with the system is high. With this said, it is also important to look at the issue of economic benefits