Question

Which of the following make a person less likely to have health insurance? (Select one or more answers from the choices shown.) a. Working for a larger firm. b. Being a low-wage worker. c. Being employed. d. Having excellent health. e. Being chronically ill.

Short answer

More likely if b. Being a low-wage worker, and d. Having excellent health.

Step-by-step solution

Understanding the Concept of Health Insurance

Health insurance is more likely to be provided by employers, especially larger firms, as part of a benefits package. People with lower incomes might find it more difficult to afford health insurance. Employment status and health conditions can also influence insurance coverage.

Evaluating Option a: Larger Firm Employment

Larger firms often provide health insurance benefits to their employees because they have more resources and incentives to attract workers. Therefore, working for a larger firm is less likely to make a person uninsured.

Evaluating Option b: Low-Wage Worker

Low-wage workers often face financial constraints that make it difficult to afford health insurance premiums out-of-pocket. Additionally, jobs that pay lower wages might not offer health insurance benefits, making these workers more likely to be uninsured.

Evaluating Option c: Employment

Being employed generally increases the likelihood of having health insurance, especially if the employment is with a company that offers health benefits. However, not all jobs provide health benefits, which might differ by employment type and industry.

Evaluating Option d: Having Excellent Health

Individuals with excellent health might choose not to purchase health insurance because they assume they won't need medical care. However, this logic is risky but feasible, potentially leading to higher uninsured rates among healthy individuals who opt out.

Evaluating Option e: Being Chronically Ill

People with chronic illnesses often need regular medical care, making health insurance crucial for managing costs. They are more motivated to obtain insurance, although they may face higher premiums compared to healthier individuals.

Conclusion Based on Evaluations

From our evaluations, options b and d make a person less likely to have health insurance: being a low-wage worker and having excellent health.

Key concepts

Employment Benefits

Employment benefits are those perks that employers provide in addition to salaries. These often include health insurance, retirement plans, and paid time off. Larger firms usually have a structured benefits package, including health insurance, because they have more financial leverage and a greater need to attract quality employees.
Smaller companies or those in less competitive industries may not offer such comprehensive packages, leading to a gap in health insurance for some employees. This is why employment benefits play a significant role in determining whether a person has health insurance. Access to these benefits varies widely depending on company size, industry, and employment type.

Low-wage Workers

Low-wage workers are individuals earning minimal salaries, often at or near the minimum wage. These workers may find it challenging to afford health insurance due to limited income. Additionally, low-wage jobs frequently come with less comprehensive benefits packages.
This financial constraint can lead to higher uninsured rates among low-wage workers. For example, a job at a small retail store might not offer health insurance, and paying for it out-of-pocket can be prohibitive. Therefore, the economic challenges faced by low-wage workers often mean that they are less likely to have health insurance.

Health Conditions

Health conditions substantially impact an individual's decision or ability to purchase health insurance. People with chronic illnesses require ongoing medical attention, making access to insurance critical.
These individuals are often more motivated to obtain coverage to help manage medical costs. On the contrary, those in excellent health might refrain from purchasing insurance, thinking they won't need it. However, this is risky as unexpected health issues can arise. Personal health conditions can therefore either increase the likelihood of obtaining insurance or create a false sense of security, leading to a lack of coverage.

Income and Insurance

Income levels play a crucial role in determining a person's ability to afford health insurance. Higher income typically correlates with access to better insurance coverage, while those with lower income might struggle to pay for health insurance premiums.
Public programs sometimes aim to bridge this gap by providing subsidies or insurance plans for low-income individuals, but these are not always comprehensive or widely available. This financial dynamic shows how income affects both the choice and necessity of purchasing insurance, as well as the availability of employer-sponsored health plans.

Insurance Coverage

Insurance coverage refers to the extent and type of health insurance benefits that an individual has. Factors like employer size, income, and employment type significantly affect coverage levels.
While working for larger firms often means better coverage, individuals employed in smaller firms or low-income jobs may have limited or no insurance. Employers sometimes offer limited plans to save costs, leaving gaps in coverage. Understanding the components of insurance coverage, such as deductibles, co-pays, and premiums, is necessary for individuals to decide which plan to opt for, ensuring they have adequate financial protection against medical expenses.