FACULTY OF BUSINESS AND MANAGEMENT

BA235 - BACHELOR OF HEALTH ADMINISTRATION (HONS)

HEALTH ECONOMICS AND POLICY (HSM476)

ARTICLE REVIEW ASSESSMENT:

The Role of Health Insurance in Reducing Health Care Cost

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BA235

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DATE OF SUBMISSION:
15 JULY 2022
ACKNOWLEDGEMENT
TABLE OF CONTENT

NO. CONTENT PAGES

1.0 Introduction 1

2.0 Analysis and Discussion 2

3.0 Conclusion 3

4.0 References 4
1.0 INTRODUCTION

Most people will eventually becoming sick, thus medical treatment are essential.
Medical treatments are not cheap especially in private hospital where the medical cost may
unexpectedly high. Thus, it will help user to avoid large medical debt. Health Insurance is a
main resource to the preservation of public health and welfare. It is a method of paying for
medical bills and health care expenses. Moreover, health insurance can help people to obtain
the care they require and make it easier to pay the medical expenses. The main goal of
healthcare systems is to improve health and well-being of people. As health insurance can
improve the community health, its compulsory to improve the financial access to health care
and expand the health service application.

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2.0 ANALYSIS AND DISCUSSION

Health Insurance for Cancer Patients

Health insurance cover a wide range of disease including Cancer. Cancer patients
have a lot of financial problems because they not only have problems with the medical costs,
such as paying for the diagnosis and treatment, but they also need to cover the nonmedical
costs, such as transportation, living expense or losing a job. When using a desirable health
insurance, they don’t have to worried and giving up to their other financial assets such as the
education fund for children, retirement saving, properties or even discontinue their cancer
treatment. From the article, it’s revealed that user satisfaction with their health insurance is
connected to their Quality of Life (QoL), as evaluated by a multidimensional concept that
includes functional, physical, psychological, and social elements of QoL. Users with better
insurance saw cancer as having a less negative impact on their financial spending and
resources. They also discern better levels of financial satisfaction and lower levels of financial
stress, leading to higher stages of (QoL). Users with better insurance plan felt less financial
burden that related to their disease and possessed a higher QoL By expanding health
insurance coverage, health outcomes can be improved to varied levels.

Health Insurance in China

China is one of the largest and most populated developing country. Over the last two
decades, China has carried out a series of public health insurance (PHI) reforms as the major
health policy, with the objective of enhancing population health and providing universal health
care. It is reported that people who covered by PHI has a higher health status. Health
insurance gave a lot of benefits especially towards the middle-aged, elderly and those with
lower incomes. As they are most likely to get sick, health insurance is beneficial to them. The
overall health consequences include increased usage of health care and proactive health
services, improvement of health-related behaviours, and use of higher-level care
professionals.

Ways to Improving Customer Trust

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 Insurance companies must establish their baseline expectations, which are largely
determined by laws, regulations, and regulations. They need to clearly explain their insurance
coverage to their customer to prevent any further problem. Moreover, they need to use a good
communication strategy to attract customers which they need to inform straightforwardly the
plan or coverage to the customer. Customers' expectations would be aligned with reality if
they had a realistic overview of the available services, insurance coverage, and processes.
Insurance companies should provide accurate, consistent, and up-to-date information to
before showing it to customer. If customer or patients’ expectation are met, they would rate
the insurance system undoubtedly where it would give a good impact to the insurance
companies.

3.0 CONCLUSION
To conclude, health insurance has a lot of benefits which are reduce health care cost,
along with make patients’ treatment process easier. Health insurance not only reduces
patients’ burden in medical ways but also non-medical ways such as transportation and living
expenses. Health insurance also can reduce cost for everyone including elderly or low-income
patients. In order to gain people trust to use health insurance, insurance companies need to
do something such as explain the plan clearly and update the information.

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4.0 REFERENCES

Arvantes, J. (2022, May 2). Health Insurance Really Is Important, and Here’s Why. Retrieved
from ValuePenguin website: https://www.valuepenguin.com/why-health-insurance-is-
important

Erlangga, D., Suhrcke, M., Ali, S., & Bloor, K. (2019). The impact of public health insurance
on health care utilisation, financial protection and health status in low- and middle-
income countries: A systematic review. PLOS ONE, 14(8), e0219731.
https://doi.org/10.1371/journal.pone.0219731

Fan, H., Yan, Q., Coyte, P. C., & Yu, W. (2019). Does Public Health Insurance Coverage
Lead to Better Health Outcomes? Evidence From Chinese Adults. INQUIRY: The
Journal of Health Care Organization, Provision, and Financing, 56,
004695801984200. https://doi.org/10.1177/0046958019842000

Pahlevan Sharif, S., Naghavi, N., Ong, F. S., Sharif Nia, H., & Waheed, H. (2021). Health
insurance satisfaction, financial burden, locus of control and quality of life of cancer
patients: a moderated mediation model. International Journal of Social Economics,
48(4), 513–530. https://doi.org/10.1108/ijse-10-2019-0629

What is Health Insurance and Why is it Important? (2019, October 25). Retrieved from
Virginia Premier website: https://www.virginiapremier.com/what-is-health-insurance-
and-why-is-it-important/

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5.0 APPENDIX