Why Free Health Insurance is Avoidable

Unlike most developed nations of the world where health care is granted irrespective of the financial condition of the citizens, United States is perhaps the lone country where private health insurance schemes have always scored over free health insurance. Carefully tracing the history of the development of health insurance in USA, it can be seen that factors such as advancements in medical know-how and government policies have played critical roles in shaping the health insurance system in USA. Today, the term 'health insurance' has a broad connotation, implying a wide range of programs that assists in reimbursement of medical expenses. It primarily incorporates private insurance, social insurance and even the government funded social welfare programs.

Free health insurance in USA mainly falls under the category of social insurance, with Medicare being the most popular government administered health care coverage in US. The Centers for Medicare and Medicaid Services, a constituent part of the Department of Health and Human Services, is responsible for administering Medicare. The payroll taxes levied by The Federal Insurance Contributions Act in conjunction with the Self Employed Contributions Act of 1954, is utilized in partially financing the Medicare scheme.

There are strict criteria guiding the eligibility rules for availing the Medicare free health insurance scheme. Individuals must be 65 years of age or above and must be an US citizen or for 5 continuous years have been a legal resident of the country. In case claimants are below 65 years of age, they must disabled or covered by the Railroad Retirement Board or Social Security disability benefits, for a minimum period of 24 months. Again, individuals suffering from continuous kidney failure or those in an urgent need of kidney transplant can avail the benefits offered by the Medicare scheme. The Medicare Scheme consists of four distinct parts. Part A delineates the Hospital Insurance rules while Part B outlines the Medical Insurance specificities. Part C and Part D covers the Medicate Advantage Plans and the Prescription Drug Plans respectively.

Despite the benefits offered by the Medicare free health insurance scheme, it has been subjected to strict criticisms owing to the spiraling financial crisis that it faces.

Another important milestone in the US health care system is the free health insurance for children being sponsored by the US Department of Health and Human Services. Under this insurance scheme parents across diverse American states can acquire a low cost or free health insurance for their children that pay for hospitalization charges, prescription medicines and doctor visits.

Therefore, free health insurance schemes have never really found a place in the American health insurance market. The period from 1940 to 1960 marked the rising popularity of the commercial insurance companies. American National Insurance Company, American Family Insurance and Group Heal Cooperative are some of the popular private health insurance companies in US.