Healthcare system as a \"third-party payer\" system: When you receive healthcare

Question

Healthcare system as a "third-party payer" system: When you receive healthcare in the U.S. generally you are not paying for it; you are paying for insurance, and your insurance pays for the healthcare. Hence, the payment is being made by a third party, your insurance company. The result is: People purchase more "healthcare" than they would if they were paying for it themselves. Your discussion question is this: What I just described could also apply to auto insurance! Most people have car insurance, and when they get in an accident it's the insurance company paying to repair their car; the money is not coming out of the driver's pocket (any more than the money for medicine is coming out of the patient's pocket). But in the market for auto repairs we do not see a situation where people "purchase" more repairs than they would if they had to pay for it themselves! Why not? Auto insurance is also a third-party payer system. What's different about car insurance?

Explanation / Answer

HEALTH IS AN ISSUE WHERE THE HUMAN BEING LIFE IS AT RISK FIRST OF ALL, APART FROM THIS HEALTH ITSELF IS TO BE KEPT IN GOOD SHAPE. NO PERSON WILL WANT TO SIMPLY DIE JUST BECAUSE HE WAS NOT ABLE TO PAY FOR TREATMENT OR EARLY DIAGNOSE OF ANY HEALTH PROBLEM. IN CASE OF A CAR WE EXPECT THAT THERE MIGHT BE AN ACCIDENT BUT YES AFTER A CERTAIN TIME WE EXPECT THAT IF THE CAR MEETS WITH AN ACCIDENT THEN WE WILL SEND IT TO SCRAP OR WE WILL TAKE IT OFF THE ROAD IF IT IS NOT FIT FOR THE ROAD. THE SAME CRITERIA IS NOT WELL FOR HUMAN LIFE.

AGAIN A CAR INSURANCE IS NOT NEEDED FOR TUNING OF ENGINE OR WHEEL ALIGNMENT OR OIL CHANGE, BUT IN CASE OH HEALTH INSURANCE REGULAR CHECKUP PROPER FOOD AND SOMETIMES MEDICINE IE REQUIRED TO STAY HEALTHY. EMERGENCY SITUATION MAY ALSO ARISE IN CASE OF HEALTH THAT REQUIRE IMMEDIATE TREATMENT WHICH IS NOT THE CASE WITH AUTO INSURANCE. AGAIN WE CAN DO SOME OF OUR CAR MAINTENANCE ON OUR OWN BUT WHAT ABOUT OUR HEALTH WE CANNOT TREAT OURSELVES OR EXPERIMENT WITH OUR HEALTH.

HENCE CAR INSURANCE IS QUITE DIFFERENT AS COMPARED TO HEALTH INSURANCE.

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