Health Insurance

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Local Government, Health Insurance and Its Issues in New Jersey

Health Insurance System in all states including (New Jersey) can be divided into two groups: the insurance offered by employers and private insurance. The amounts that an employer spends on health insurance of their employees are not taxable. Therefore the employer to offer insurance benefits, and such insurance is often a very good quality. Therefore, spend a lot on his health insurance, we physically cannot, it is not profitable. Therefore, not many private owners do decide to purchase health insurance. This market segment is not well developed, little competition, and such insurance is expensive.


The cost of insurance affects the number of purchased services. It is logical to assume that in a free market and lack of regulation by the State of any person should be able to buy insurance just for those cases which are more likely in his situation. For example, if a person chooses their level of risk to 10.000 dollars a year, thereby reducing the cost of insurance, this means that if something goes seriously, this person must be out of pocket to pay for his treatment of 10.000 dollars, and everything will be over paid by the insurance company. Given that some treatments cost in the hundreds of thousands of dollars, this option is quite beneficial, especially for healthy people. Nevertheless, the State is increasingly required to include the fullest possible range of services to insurance and to limit the level of risk. That is, for example, if Obama will reform, many of these insurance plans will be disqualified and people will be forced to buy more expensive plans or switch to public insurance (Woolhandler and Himmelstein, 2009).

Another problem - the lack of competition in the country, there are about 1,300 private insurance plans. ...
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