Understanding health care

Understanding Health Care
Name
Institute Affiliation
Understanding Health Care
The out of the pocket model is the simplest as a patient pay for service directly. Here medical care is paid for the same way as people do when purchasing goods. A majority of people consider health care as a basic need and not a luxury; therefore there ought to be another mechanism of payment for patients who cannot afford medication. In the individual private insurance, there is an addition of a third party- insurer. It is different from out of pocket because here there are two transactions, which are payment of premium by an individual and pay to the hospital by the insurance company (Bodenheimer & Grumbach, 2009, p. 7). However, this method is disadvantaged by high administrative charges.
The employment-based health insurance is almost similar to the private model only that her it is the employers that pay for the premium on behalf of their employees. The government subsidizes this model of insurance since the premium payment is regarded as a non-taxable income to workers.Government financed insurance came to carter for the elderly and the poor. It is a state-federal corporation that pays for the medical services offered to low-income earners. Patients do carry the burden of paying for any costs.
Out of the above four, the most effective model is the individual private insurance, the reason being despite its benefit to the insured during his or her time of need regardless of the cost. For example, its value can be seen when it helped out Bud Carpenter in paying the $80,000 bill for his child.

He had been spending a monthly premium of $300, and at the time the child fell ill Bud could not afford the hospital bill.
References
Bodenheimer, T. S., & Grumbach, K. (2009). Understanding Health Policy (5th Edition)(5th ed.).