Sources of Health Insurance Coverage in Alaska
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Sources of Health Insurance Coverage in Alaska
According to Baicker, & Chandra (2008) insurance coverage works through pooling of risks as those who face risks get compensation from the premium collections from several individuals covering that risk. The insurance concepts work that not everyone who pools risk can get sick at the same time, so in the event one falls ill from the pool, there is ease for compensation from the pool. People are uncertain of their health status and thus need to secure themselves when healthy to avoid needing extra resources while requiring more care to be compensated. With the increasing costs and healthcare needs, the cost of health care is increasing, and there is need to ensure that one is capable of purchasing the services.
Alaska is a state that faces health care disparities that are persistent with higher uninsured rate, barriers to obtaining health care and poor health status of people. The federal regime has taken initiatives to ensure that it provides services to the residents and remove barriers to access health care even as the efforts continue to be underfunded (Boursaw, Bettez, Larzelere, Stone, & Waitzkin, 2015). The state rests hope in the affordable care act as an opportunity for an increase in healthcare coverage and in reducing disparities that are persistent in the state (Ku, 2009). Alaskan employer insurance plan matches that of the rest of the country even though it is one of the states with higher rate of uninsured standing close to 20% of its general population.
Alaska has large geographical area and water body but a smaller population as compared to other states. The state has the lowest population density and providing health care services and coverage can be detrimental (Ku, 2009). It is presumable that the logistics for the provision of care and coverage within the area of other barriers is the reason for higher uninsured rates in the state. Just like other states, the state gets government insurance covers among others, and the state government commits to ensuring that healthcare service delivery reaches the people.
Sources of Health Insurance Coverage for Different Groups
Alaska is the state that has the lowest coverage by the government insurance scheme for the elderly under Medicare at 9% with a variance of 3% with the next state of less coverage (Ku, 2009). Those over the age of 65 get coverage by insurance companies that exist in the state with those who cannot access cover from the insurance agencies getting admission to the government scheme. Aging and Disability Center and other state agencies also contribute in some cases to the coverage of the elderly.
For those below the age of 18 and the college students, the insurance policy will depend on the cover of the parents, as most are dependents of parents under their covers. They can qualify for the government insurance under Medicaid depending on qualification of the parents (Ku, 2009). It is not probable that people under this group may fall under out of pocket programs or private insurance schemes.
Low-income families with at least one child, whose household income is below 133% of the Federal Poverty Level qualify for Medicaid, and due to the higher poverty level in the state, the administration is pushing for the expansion of Medicaid (Boursaw, et al., 2015). For those who are self-employed or work part time, the measure of earnings below the poverty line can qualify them for Medicaid. The individual or self-insurance plan is also an option for the self-employed.
For the employees of larger companies, it is incumbent on the employer to purchase policies for the employees (Ketsche, 2005). Just as the small size firms, the major companies can opt on managed care organizations to provide services for their employees. For the unemployed, there are several benefits depending on the age of individuals, and can qualify for all the products offered to those who cannot afford care. Medicaid still covers persons and such families may gain entry to the child health insurance plan for their children.
The Need to Contribute to the Premiums of Health Insurance
The contributions of premium for the insurance covers depend on the cover purchased or who have purchased the premium. For the employees of companies who’s the employer pays premiums for employee’s health benefits, the insured does not need to pay a premium for the cover as the business settles all the cost if fully insured. For the companies who contract a managed care organizations to implement the coverage for their employees, the beneficiaries can pay part of the premiums while the employer pays the rest (Ketsche, 2005).
The government aids and insurance have a full settlement, and the recipient does not need to pay any part of the premium. For those who purchase cover on their personal basis, they handle paying the whole package themselves. Children do not contribute premiums for their cover. However, depending on the type of the cover parents will pay their premium or the government agency (Baicker, & Chandra 2008). The elderly who qualify for Medicare does not need to pay a premium, but those who purchase individual covers must contribute for their coverage. Payment of premium also depends on whether one is fully covered or not, because in the event a person is not fully covered, that person handles the remaining part of the insurance premium.