Health Care: Etiology of a Medical Crisis
According to many people, we are in the midst of a health care crisis. As evidence, people cite the large number of uninsured -- up to 43 million according to some estimates -- and the underlying problem of skyrocketing costs. Only higher education has increased at a rate comparable to health care in the past 30 years. But why has this happened? And does it constitute a crisis? Health care vs. health insurance Insurance exists to cover catastrophic costs that the insured would not otherwise be able to afford. If your house burns down, you are suddenly without anywhere to live and, in all probability, you still owe the mortgage on your house. If you die, you leave your family with burial expenses and the problem of making ends meet without your income. Home insurance and life insurance cover these two eventualities by paying a large sum in the event of tragedy, while collecting smaller amounts from a number of people who will never suffer the loss (but who cannot know this in adv