How does National Health Insurance Affect Society | Major Reasons Explained

They will subsidize people earning less than 400 percent of the federal poverty threshold for Marketplace coverage under Medicaid expansion. Millions of Americans are without health insurance because of the Affordable Care Act (ACA), which aimed to fill the loopholes in our health care system. The number of older Americans without health insurance dropped by 20 million due to the Affordable Care Act’s implementation, reaching a new low in 2016. Let’s learn how does national health insurance affect society.

Compared to those with health insurance, people without health coverage are more likely to forgo preventive procedures and report having no regular source of health care. 

At the federal level, universal health care reduces national health expenditures by allowing the government to determine pharmaceutical and service pricing. 

Two extremely well-designed studies using various approaches reveal that Medicare has little influence on mortality; two other studies using IV methodologies show that private insurance has a significant impact on near-elderly’s health. 

These outcomes are not incompatible. The result variables varied and hundreds of additional variances between the researches. 

How does National Health Insurance Affect Society

How does National Health Insurance Affect Society

Main prevention and screening facilities

Adults without insurance are less likely to receive preventive and screening services. Health insurance that comprehensively covers preventive and screening treatments are likely to result in the more excellent and appropriate use of these services. Thus, it may help reduce racial and ethnic differences in utilizing preventive and screening services.

Cancer care and outcomes

Population-based breast, cervical, colon-rectal, prostate, and melanoma cancer studies corroborate this conclusion. This information comes from studies conducted from zonal or state cancer registries. 

Chronic disease care and outcomes

Early identification of chronic diseases and the provision of appropriate health care in a continuous and coordinated manner are goals of the health care system. Thus, they have been refined over several decades as evidence of cost-effective interventions and procedures accumulates. 

General health outcomes

Population-based longitudinal studies of mortality in the uninsured and privately insured demonstrate that those initially uninsured have a higher risk of death than those who originally received private coverage.

Many folks in the United States have difficulties financing different health care and dental charges. 

A sizable proportion of persons over the age of 65 report having difficulties paying for different elements of health care, particularly those not normally covered by Medicare, such as hearing aids, dental care, and prescription medication prices.

The high expense of health care frequently hinders people from receiving necessary care or filling prescriptions. 

Because of the cost, half of all adults in the United States postponed or skipped health or dental care in the previous year. 

Difficulties paying medical expenses can have serious effects on American families. 

They claimed the bills had a significant impact on their family. Medical bill issues also disproportionately affect people without health insurance, those with lower household incomes, and adults living in families where they or a family member has a major health condition.

Effects of Health Care Spending Overall Economy

How does National Health Insurance Affect Society

The disparity between the 9.3% growth in healthcare spending and the 3.6% growth in the total economy, meaning that a more significant proportion of resources are being allocated to healthcare than to other goods, will affect the public and private sectors of the economy.

According to some economists, the rapid increase in healthcare spending reduces GDP and overall employment. According to one study, deficit financing disproportionately hurts export and capital goods industries, while payroll tax financing disproportionately hurts consumer service companies. 

Key Facts about the Uninsured Population

How does National Health Insurance Affect Society

How many people are uninsured?

In 2020, there were 28.9 million non-elderly uninsured, an increase of more than 1 million from 2018. Declines in Medicaid and uninsured coverage were pronounced among Hispanics and children. Despite these recent increases, the uninsured rate was significantly lower in 2019 than in 2010, when the first provisions of the ACA took effect and before Medicaid expansion and the establishment of the health insurance exchanges were fully implemented.

How does not having coverage affect health care access?

Uninsured people have less access to care than insured people. 

What are the financial implications of being uninsured?

When the uninsured seek medical care, they often face prohibitive medical expenses. These expenses can quickly accumulate into medical debt, given that most uninsured people earn poor or moderate wages and have little, if any, savings.

Uninsured people are more likely than those with insurance to report needing medical care. 

Uninsured children also have difficulty accessing needed care. They are prone to lack a regular source of care, delay care, or have unmet medical needs. 

How does not having coverage affect health care access?

Health insurance significantly impacts whether and when people receive critical medical care, where they receive it, and ultimately their health. The consequences can be severe, especially when preventable ailments or chronic illnesses go undiagnosed.

What are the financial implications of being uninsured?

When the uninsured seek medical care, they often face prohibitive medical expenses. In addition, hospitals usually charge the uninsured much higher costs than commercial health insurance and government programs.

Medical expenses can be highly stressful for the uninsured and jeopardize their financial security. 

Frequently Asked Questions

How does universal healthcare affect society?

At the federal level, universal healthcare reduces healthcare costs to the national economy by allowing the government to set prices for pharmaceuticals and services. Being born into a universal healthcare system can also translate into a more extended and better life and reduce social inequalities.

Why is health insurance necessary to society?

Health insurance protects you against unexpected and costly medical expenses.

What are the pros and cons of universal healthcare?

The advantages of an all-payer system are that it is highly regulated and provides the government with cost control similar to socialized medicine. Disadvantages: The all-payer system depends on an overall healthy population, as a higher prevalence of sick residents can quickly deplete the “sick fund.”

How does universal healthcare affect the economy?

Medicare for all has the potential to reduce wasteful “job lock” and stimulate small business creation and self-employment. Universal health insurance that is not conditional on employment expands economic opportunities for workers and results in a better match between workers’ skills and interests and available jobs.

Bottom line

The COVID-19 pandemic has forced social isolation to contain the spread of the coronavirus within communities. Suggestions of social distancing have increased the number of people reporting delaying or skipping health care visits in 2020, including preventive treatment. 

However, recently available statistics may shed light on how healthcare costs affect healthcare access. In the United States, most adults (88%) have health insurance, and most (85% of adults) also claim to be in good or excellent health.


Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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