Group 4

Prof. Hitt

PHIL 205B – Outline on Health Insurance effects on treatment/care

Health Insurance has some great and positive effects on the quality of treatment/care

because it helps individuals to access immediate, quality, and affordable health services.

However, for effective and equitable distribution of medical services there is a need to control

financial constraints while improving the general quality of the health care.

The provision of health insurance has the potential of reducing the cost of medical care as

the financial risks are shared among the members and no further payments are required.

Governments need to reduce healthcare prices by granting subsidies on health insurance to

increase affordability. As a result of the reduced prices, the demand for health care insurance

covers will automatically increase. However, studies have been conducted to evaluate the equity

effects of such plans on the quality of health care provided and distribution of healthcare

resources. Due to the lack of sufficient resources, it is hard for the governments to help low

income class, therefore, despite focusing only on the healthcare resources, the governments also

needs to focus on other problems and ethical issues like income inequality, and poverty. This

paper provides an analysis of the impact of health insurance on the treatment and distribution of

resources.

The health insurance on one side has allowed some groups to get access to its great

benefits; however, at the same time it has negatively affected other groups, even those who have

access to health insurance policies, such as government policies or personal/own insurance

coverage. Studies have identified that the inequity between these groups is mostly because of
class differences. This makes the situation ethically wrong as people in the upper tier are more

likely to get access to health insurance and health care because such facilities are mostly

available in urban areas only. As per the principles of bioethics, health insurance should promote

equity; however, the current standards are not supporting the basic objective of health insurance

that is making it ethically wrong.

 References

Hidayat, B., Thabrany, H., Dong, H., &Sauerborn, R. (2004). The effects of mandatory health

insurance on equity in access to outpatient care in Indonesia. Health Policy and Planning,

Trotochaud, K. (2006). Ethical issues and access to healthcare. Journal of Infusion Nursing,

Van Doorslaer, E., Koolman, X., & Puffer, F. (2002). Equity in the use of physician visits in

OECD countries: has equal treatment for equal need been achieved. Measuring up:

improving health systems.