Decision to Invest in Insurance
Topic: The effect of public policies and economic constraints on
Americans’ decision to invest in insurance
General Purpose: To evaluate the significance of pubic polices and
economic constraints on insurance in investment.
Specific purpose: To evaluate the relationship between the status of
being unsecured and on economic constraints and poorly formulated
policies on the large number of uninsured Americans.
Thesis: Economic constraints and poorly founded public policies are the
key factors that have resulted in the large number of uninsured
About 48.6 million Americans are unsecured while the government
interventions will only reduce this large number to 30 million by 2016
People without insurance cover especially health insurance forego
preventive care and tend to postpone the necessary health care.
The existing health care and insurance policies have proven to be
ineffective because the number of uninsured people has been increasing
in the United States.
Preview of main points
Lack of insurance cover has negative health effects on health of
Uninsured Americans are less healthy, are at a higher risk of perception
of cancer, and more depressed than the secured American population
(Wilper, Woolhander, Lasser, Himmelstein, McCormick & Bor, 2009).
Lack of insurance cover is positively related to poor health services
and mortality where an average of 18,314 uninsured Americans dies every
year because they lack the necessary health care (Wilper et al., 2009).
The tendency of many Americans to avoid insurance coverage can be
attributed to poorly founded public policies.
Compared to other industrialized nations (such as Japan), America have
not been able formulate policies that can ensure universal health care
for its citizens (Wilper et al., 2009).
Poorly formulated policies have resulted from the externality-based
debates as opposed to irrationalities and redistribution, and this has
reduced the significance of government role insurance of the Americans
(Wilper et al., 2009).
Economic constraints have reduced the tendency of Americans to invest in
insurance, but government subsidy can increase insurance marker
The government can reduce the number of financially poor uninsured by
formulating affordable insurance products, which can increase universal
access (Gruber, 2008).
Changes in poverty concentration, asset poverty, poor labor market
conditions, and increased cost of health have reduced investment in life
insurance in America (Hugh, Servoss & Cheong, 2007).
The decline in health status and high mortality rate in can be
attributed to the large number of uninsured.
Suitability of public policy is positively related to investment in
The government has a significant role of providing affordable insurance
products to safeguard the poor Americans against lack of access to
necessary health care services as a result of increasing cost of health.
Gruber, J. (2008). Covering the uninsured in the United States. Journal
of Economic Literature, 46 (3), 571-604.
Hugh, T., Servoss, T. & Cheong, H. (2007). Health inequalities for
uninsured Americans. Journal of Health Communication, 12 (3), 285-296.
Roache, J. (2013, June 10). 30 M Americans will still be uninsured in
2016 under the ACA, study says. California Health Line. Retrieved
September 10, 2013, from HYPERLINK
Wilper, P., Woolhander, S., Lasser, E. Himmelstein, U., McCormick, D. &
Bor, H. (2009). Health insurance and mortality in US adults. American
Journal of Public Health, 99 (12), 2289-2294.
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Decision to Invest in Insurance