PFIN 7:STUDENT EDITION-TEXT
7th Edition
ISBN: 9780357033616
Author: Billingsley
Publisher: CENGAGE L
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Question
Chapter 9, Problem 1LO
Summary Introduction
To identify: The importance of having adequate health insurance, the factors that lead to the increase in cost of health insurance.
Expert Solution & Answer
Explanation of Solution
The health insurance cover is very essential for an individual as it helps to cover all the hospital and medical bills in the advent of need. The medical treatments become quite expensive over the time period. The major illness can cause an average person to spend almost tens or hundreds thousands of dollar on its treatment. It is observed that majority of personal bankruptcies are the result of medical cost. Health insurance bears the medical bills both for the routine check up and major illness treatment. Thus, health insurance is vital for all the individuals.
The factors that lead to the increase in the cost of health insurance are listed as follows:
- The technology advancement in the medical science is costly.
- The major part of country U population is aging.
- Demand and supply distribution of the health care facilities and services is poor.
- Other factors include high administration cost, increased paper work, strict regulations and increasing frauds related to insurance.
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Chapter 9 Solutions
PFIN 7:STUDENT EDITION-TEXT
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