explain completely why health insurance is related to health economics?

Answer 1

First insurance companies are betting on your continued good health. However, there are certain conditions that are common expenses such as pregnancy, pediatric care, etc... As the cost of providing medical care increases the potential payout increases. New innovations in medical care are usually more costly and the same goes for prescription drugs. As one grows older the likelihood of medical treatment becomes more eminent, and the insured faces the risk of cancer, heart decease, and other costly medical procedures.

So, the cost of health insurance is directly related to the cost of providing the most current medical care and the health risks of the insured.

Answer 2

Health economics has five different market in it:

1. Healthcare Financing market
2. Physician services market
3. Institutional services market
4. Input factors market
5. Professional education market

Health insurance is part of the Healthcare Financing market ( #1 ).