Universal insurance solving “market failure” in health insurance
The question of universal insurance is rather controversial, and it is associated with a lot of the economic issues such as the questions of equity and efficiency which can be discussed with references to the market failure (Sloan and Hsieh). Mandating universal insurance, it is possible to resolve the problem of classifying the ‘types’ of individuals seeking to buy insurance, but it is difficult to conclude about the completeness of the solution because it involves a lot of other significant aspects. On the one hand, the universal insurance can be discussed as the reasonable solution of the problem.
On the other hand, such an approach can complicate the current situation because mandating universal insurance, it is possible to influence the health care costs negatively. The competitive insurance system cannot be reformed immediately with using universal insurance. In spite of the fact the situation when each individual has a health insurance policy from some source can be discussed as beneficial for the individual because of stating the economic inequality, the problem will not be solved completely with references to the other economic effects of the reform on the health care system funding. The realisation of this strategy should be supported by some other steps.
Dental services in universal health insurance
Some proposals for universal health insurance do not include the dental services or provide the definite restrictions. It is possible to determine several reasons for the fact. The dental services belong to the category of the medical services which are mainly provided by private dentists that is why it is typical for the individuals to use private insurance to cover the dental services’ costs (Sloan and Hsieh). Moreover, dental health and the problems associated with it are discussed as predictable and caused by the aspects of the patients’ behaviour. Dental services are also considered as the services actively used by people, and their funding as the part of the universal insurance is inexpedient.
Employer-paid insurance leading to a permanent loss of jobs for low-paid workers
Different companies can use various principles to provide their employees with the necessary employer-paid insurance. One of the variants which can be used is the realisation of the insurance payments basing of the worker’s salary. Thus, the sum provided according to the insurance is correlated with the salary. However, mandating employer-paid insurance, the companies may face the problem of penalties for non-complete coverage of the insurance payments (Sloan and Hsieh).
That is why, low-paid workers are at risk to be fired by the employers who are inclined to avoid penalties because there are no advantages to save the position of the definite specialist in the company and provide him with the correlated insurance.
The features of Japanese health care system
The Japanese health care system is based on the universal health care insurance which provides people with the equal access to all the medical services available in Japan (Sloan and Hsieh). However, such equality in patients’ treatment results in some distinct features of the Japanese health care system which are long stays and high rates of drugs prescription. In spite of the fact hospitalisation rates are comparably low, the Japanese hospitals are characterised by long stays because there are no differences in overcoming urgent, serious, and usual incidents. The patients’ cases are discussed equally. Furthermore, the rates of drugs prescription depend on the government’s agreements with the medical providers in relation to which the prices are set, and the rates grow.
Sloan, Frank, and Chee-Ruey Hsieh. Health Economics. USA: The MIT Press, 2012. Print.