Voluntary health insurance has always been a non-mandated scheme that is optional and aims at indemnifying the insured from health related cost. To the middle-class economies, the financial mechanisms would be of great help thus able to cover medical expenses therefore able to afford the medical services offered. Consequently, the techniques of better services and introduction of different insurance schemes such as voluntary thus able to evaluate the weaknesses faced and the best strategies to implement in order to succeed. Accordingly, the paper discusses the major challenges facing voluntary health insurance and the effective measure to impose.
Corruption is one of the major problems facing this scheme in that the middle level economies are prone to disparity since they have no power in their voices. As a result, the health risks factors become difficult to determine and evaluate hence the viability of services provided become questionable. Light, (1998), affirms that the likelihood of higher risks subscriber tendency will minimize therefore implying policies that facilitate overcharging premium rates of their services in order to gain more benefits. The exploitation of the poor who have the low risks results to isolation and determent from being insured.
The corrupt are able to dominate the powers of insurance schemes and thus becoming almost impossible for the minority to get the financed for the Medicare services. In a middle-level economy, the chances of the health insurance scheme to roll out their duties are a big limitation. The fact that majority of individuals in this place are below the poverty line, makes it difficult and almost impossible for them to secure themselves against health risks. Consequently, most of the citizens are likely to give the program no chance to try on its effectiveness. The misappropriation of polled funds by the management of the programs also makes it challenging in facilitating the growth of their services in the developing world.
In conclusion, various strategies should be implemented to terminate the problems under the insurance scheme in middle-level economies. Approaches such as equality to all subscribers in that, they are not exploited or even overcharged under any circumstance. Elias, (2010) ascertains the implementation of heavy penalties to the corrupt and those caught using the premium inappropriately. In order for the minority groups in these countries to embrace the voluntary health insurance scheme, civil education on its benefits should be passed to them. Consequently, the social welfare of society is enhanced by the reduction of medical expenses.
Bibliography
- Gina, L. Sapna, S, k, 2008, Overcoming the Challenges of Voluntary Risk Polls in Low- Income Settings, Rockefeller Foundation, New York Elias, M.
- Sarah, T, 2010, Voluntary Health Insurance in the European Union, European Observatory on health Systems and Polices, London Manning, w.
- G, Marquis, M. S, 1989, Health Insurance: the trade-off between risk pooling and moral hazard, RAND Corporation, Santa Monica Light, D, 1998, keeping completion fair for health insurance: how the Irish beat back risk- related policies, American journal of Public Health
- Hofmarcher, M. M, 2001, Voluntary health insurance in Austria: a study for the European Union Commission, Institute for Advanced Studies, Vienna
