Choosing health insurance is complicated because of the many factors that go into it.  One of the main complications is figuring out how much coverage you need and what your coverage entails. Insurance companies can make it difficult to compare plans because they use different numbers and terminology to describe the same quality of care. This makes it hard for people to make a more informed choice and they end up with the wrong plan with negligible non cost benefits. So let’s debug the query: why is health insurance so complicated?

How Do The Insurance Companies Trick You?

On top of that, insurance companies make money by investing in their premiums. Because of this, they often want to invest as little as possible in a health care plan and more in other things like administrative costs or profit margins.

This makes them incentivized not to check theory total spending on what they’re required to on people’s medical expenses. Lastly, the different plans can be challenging to navigate because they each have unique rules, benefits, and exclusions. They suggest choice overload for clients and make them bamboozled.

Rhwb42P147Bpwvalkcmb1L8Wz1Jcgkju2Sf Tthsntqq1Fgbbn2Oxknnwn4Tbebdwt4Uzqfmubfwwnr1Pcrdm9 Exvoposzeewsulw34Ii8Sdwf9Mafpjjq5V7Qwnr1S4T Ij2Pp=S0
Why Is Health Insurance So Complicated In United States?

What Are The Different Types Of Health Insurance?

There are two health care plans or insurance: traditional plans and high deductible plans/health savings accounts (HSA).

Traditional health insurance is more comprehensive than the HSA plan because it covers a broader range of services and includes mainly everything except preventative care.

An HSA plan is the opposite. After all, it’s more bare-bones than other plans because it has higher deductibles which you can use to save money for medical care later.

Why Is The Health Care System Considered Complex In The Us?

The US has one of the most complex health care systems globally, primarily due to limitations by government restrictions and mandates on what can be covered.

However, critics say this is only superficial complexity; beneath that is a much simpler system that focuses more on profits and consumer errors without the notion to eradicate consumer errors and render benefits to average Americans.

Healthcare Spends And Racism

The US government spends more money per person on health care than any other country in the world.

However, this doesn’t mean that patients receive better care; instead, there is a lot of wasteful spending going on. Economists suggest that despite having one-seventh of the world’s population living within its borders, the US only has one-sixth of the world’s health care spending.

An average covered worker faced a choice overload which hinders them to optimally choose the right plan with same non cost benefits as one that a person with reach gets.

Poverty, racism, and other societal factors also play a role in the complexity of this issue. Furthermore, physicians typically only consider their perspective when treating their patients; they don’t usually consider how their patient’s unique perspective (and issues such as poverty) informs his remedies.

Why Is Health Insurance So Complicated In United States?
Why Is Health Insurance So Complicated In United States?

Why Is Insurance Complicated?

Insurance providers are often faced with the problem of what is known as adverse selection. This is when people in danger of filing a claim end up purchasing insurance, which makes it more expensive for the company to provide coverage for everyone else.

How Much Risk?

In an attempt to keep a low monthly insurance premium while providing adequate coverage, insurers have designed a system that groups all policy holders into risk categories by evaluating risk factor. This way, companies can target their marketing and offer discounts to specific demographic groups that don’t represent a large portion of their claims.

Insurable interest

These categories are based on what is known as “insurable interest.” If you were to purchase insurance on your own house, for example, it would make sense that you would also want coverage of the contents inside.

This is because if the house were destroyed, then all of your personal belongings would be lost as well. But if something happened to your neighbor’s home, then it would be a different story. You wouldn’t necessarily need contents coverage on that house because you wouldn’t be able to use their belongings if they were destroyed.

Why Is Health Insurance So Complicated In United States?
Why Is Health Insurance So Complicated In United States?

Is Health Insurance Complicated?

Health insurance in the United States is a very complicated and confusing subject. The government in America has proposed health care reform to tackle these issues, but there’s no telling when they’ll be resolved.


Many Americans (up to 45 million) are currently uninsured. New unpublished research shows that insurance prices can give a tough time to some people – even more than their monthly rent! Other factors of poor health decision boils down to drug addiction, drinking excessively, and eating fried foods or fast food multiple times a day. Getting the best health care plan is not for everyone!


For example, someone may have an immediate need for cash, so they sell their car to pay off some of the medical bills that have resulted from their accident. People will go to different lengths to obtain money quickly. There are even cases where people resort to robbery or theft to get money fast! Many health care practitioners believe that mental health illnesses are on the rise because the public is unable to make better health insurance choices. 

What makes healthcare complicated?

Healthcare documents are written in a complicated language because many factors come together to form the playing field. All of these factors can affect one another, and because of this, it’s not always easy to know what the best decision is.

Picking Insurance Plans: Weird?

Insurance prices for healthy people may seem cheap, but when you factor in someone who has a pre-existing condition, their price will be much higher.

The other dilemma facing any individual considering healthcare is whether or not they will need it often enough to make out-of-pocket coverage worth it or if that person should spend that money elsewhere instead.

Low access

The last primary reason that makes healthcare complicated is access. If you don’t have a job with benefits, you may find it challenging to get insurance on your own. If they do have access to an affordable plan, was there a waiting period required?

How Can Poor Health Insurance Decisions Wreck You?

They can wreck you in the following ways:

 -Inability to get treatment when you need it

 -Increased out-of-pocket expenses for services and prescription drugs

 -Higher premiums, co pays, and deductibles

 -The financial and emotional stress of dealing with an illness

What can you do to avoid making poor health insurance decisions?

To avoid making poor insurance plans, take the time to analyze your current plan. How many visits are allowed for specialist care per upcoming year? Is there a co pay or deductible that affects prescription coverage? Once you have identified the plan details, make a list of services you need over the next year. Then go online to comparison shop for a health insurance policy that matches your needs and budget. So as you see it is not easy or even a binary choice but a myriad of factors to be taken into a note!

Steps to bring insurance awareness

  • Don’t get your health insurance through your job. If you do, try to find an affordable plan and meets the needs of you and your family, or do check out the affordable care act plan.
  • Do the research on health care reform on your own. Do not listen to scare tactics or uneducated opinions about what’s going to happen in 2022. If you don’t like Obamacare, write to your congressman and let him know that you want to keep what you already have.

Research By Self Is Key

  • Research on your own before deciding on health care services. Understand health insurance terms so that you are not deceived by salespeople trying to sell you something they don’t need. Health care plans are complicated, so educate yourself first!
  • Do not be intimidated or manipulated by people trying to sell you something.