Health Insurance

Week 2
Health insurance
Health Insurance protection against income variability due to illness by pooling risks over a large number of people

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  income variability- daromadning o'zgaruvchanligi
  
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  by pooling risks- xavflarni birlashtirish orqali
  

Consumer pays the insurer a premium-( sug'urta puli) to cover medical expenses the following year

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  Insurer- sug'urtalovchi
  

Premium might be eventually higher or lower than what their actual medical expenses are

Insurer can pool (distribute) the risk among many consumers, such that sum of the premiums will be larger than the total medical expenses

Ideally, number of insured should be large, and they should be independently exposed to potential loss

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  independently exposed to potential loss- potentsial yo'qotishlarga mustaqil ravishda duchor bo'ladi
  

Private insurance: provide through markets; buyers protect themselves against rare events with probabilities that can be statistically estimated
Public insurance: any government sponsored program, often mandatory funded by taxes and/or premiums paid by participants
any government sponsored program- hukumat tomonidan homiylik qilinadigan har qanday dastur
Premiums are often heavily subsidized
▶ Participation is constrained according to government-set eligibility rules or universal (to cover full population)
▶ Ex.1: USA - Medicare and Medicaid, premium are subsidized and participation is restricted
▶ Ex.2: Czech rep. - compulsory insurance with premiums that not risk rated (but progressive with income)

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  Constrained- constrained
  
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  eligibility rules- muvofiqlik qoidalari
  
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  subsidized- subsidiyalangan
  
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  restricted- cheklangan
  
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  compulsory insurance- majburiy sug'urta