compulsory insurance models

Examples of compulsory insurance models in the following topics:

• The Role of Government

  • This distinguishes it from other forms of private medical insurance.
  • In the private model, the rights of access are subject to contractual obligations between an insurer and an insurance company.
  • Publicly funded healthcare systems are usually financed in one of two ways: through taxation or via compulsory national health insurance.
  • In compulsory insurance models, healthcare is financed from some combination of employees' salary deductions, employers' contributions, and possibly additional state funds.
  • However, introducing improved incentives through a more competitive environment among providers and insurers has proved difficult.

• Income Security Policy and Policy Making

  • That a compulsory government program, not the private market, provides unemployment insurance can be explained using the concepts of adverse selection and moral hazard.
  • Adverse selection causes profit maximizing private insurance agencies to set high premiums for the insurance because there is a high likelihood they will have to make payments to the policyholder.
  • High premiums exclude many individuals who otherwise might purchase the insurance.
  • "A compulsory government program avoids the adverse selection problem.
  • "At the same time, those workers who managed to obtain insurance might experience more unemployment other than what would have been the case."

• Social Insurance

  • The program serves a defined population, and participation is either compulsory, or the program is subsidized heavily enough that most eligible individuals choose to participate.
  • Social insurance differs from welfare in that the beneficiary's contributions to the program are taken into account.
  • Medicare is an example of a social insurance program, while Medicaid is an example of a welfare one.
  • In the United States, Social Security, Medicare, and unemployment insurance are among the most well-known forms of social insurance.
  • Social Security is one of the best-known social insurance programs in the United States.

• Health Insurance

  • Health insurance is insurance against the risk of incurring personal medical expenses.
  • Health insurance is insurance against the risk of incurring personal medical expenses.
  • Two types of health insurance exist in modern society, private health insurance and publicly funded health insurance.
  • The first, the medical model, focuses on the eradication of illness through diagnosis and effective treatment.
  • The second, the social model, focuses on changes that can be made in society and in people's lifestyles to make the population healthier.

• Paying for Medical Care

  • Health insurance is a type of insurance whereby the insurer pays the medical costs of the insured if the insured becomes sick due to covered causes or accidents.
  • Two types of health insurance have developed in modern society: private health insurance (or free-market) models and publicly funded health insurance models.
  • The benefits and drawbacks of each of these models are discussed in this and the following section.
  • Advocates of the private model argue that this approach to health care has the following benefits:
  • Most experts believe that significant market failure occurs in health markets, thereby leading free market insurance models to operate inefficiently.

• Chance Models

  • In order to understand stochastic modeling, consider the example of an insurance company projecting potential claims.
  • Like any other company, an insurer has to show that its assets exceed its liabilities to be solvent.
  • In the insurance industry, however, assets and liabilities are not known entities.
  • So the valuation of an insurer involves a set of projections, looking at what is expected to happen, and thus coming up with the best estimate for assets and liabilities.
  • A stochastic model, in the case of the insurance company, would be to set up a projection model which looks at a single policy, an entire portfolio, or an entire company.

• Where a Dollar Spent on Health Care Goes: Introducing the Inputs to Health Care

  • Health care has many inputs and a variety of incumbents, namely insurance providers, administrators, governments, and pharmaceuticals.
  • Insurance Providers: There is a divider between most medical service consumers and their providers, and this is the insurance company.
  • The insurance companies command a huge profit and represent a substantial part of the medical price tag.
  • Government: The role of government in health care is fiercely debated in the United States, but in most of the developed world the government is essentially the provider of health care plans (using social services models to consolidate tax revenues to be allocated for this service).
  • This creates enormous inefficiency in the system and reduces the economic viability of operating in these countries for insurance providers.

• Defining Product

  • An example of an intangible product is insurance.
  • An intangible product is a product that can only be perceived indirectly such as an insurance policy.
  • Each product has a Sears item-number and a manufacturer's model-number.
  • In 2002 the US Census compiled revenue figures for the finance and insurance industry by various product lines such as "accident, health and medical insurance premiums" and "income from secured consumer loans. " Within the insurance industry, product lines are indicated by the type of risk coverage, such as auto insurance, commercial insurance, and life insurance.

• Constituency

  • Representatives can act in two models of representation: as delegates or trustees.
  • The delegate model of representation is a model of a representative democracy.
  • This model does not provide representatives the luxury of acting in their own conscience.
  • On the other hand, the trustee model of representation is a model for how we should understand the role of representatives, and is frequently contrasted with the delegate model of representation.
  • The practice of gerrymandering has been used to insure that one or the other party will have an easier time winning elections by creating districts that hold a majority of voters likely to vote for one party or the other.

• Organized Labor

  • Union officials can force compulsory union dues from employees, members and nonmembers alike, as a condition for keeping their jobs.
  • Provision of benefits to members: Early trade unions often provided a range of benefits to insure members against unemployment, ill health, old age, and funeral expenses.