Here Is Why Everyone Needs Health Insurance

Today, healthcare insurance is one of the hottest political topics. Everyone is asking who should be able to have health insurance, what will be the costs of it, can you survive without insurance and what will be the penalty? In this article, we are going to help you know the reasons why everyone needs health insurance.

Life is Unpredictable

While the spontaneity of life is pleasant, know that your health and budget may be hit hard due to unpredictable circumstances. Major health illnesses like diabetes, cancer or HIV have high medical costs. If you don’t have health insurance, the cost of these medical treatments may ruin your credit rating. As a matter of fact, medical bills is one of the reasons why many people go bankrupt.

Regardless of your circumstances, it’s important that you have insurance. You have no idea what is going to happen in your life down the road. We hope that nothing bad is going to happen in your life but it’s great to have peace of mind by signing up for an insurance policy. This will give you the peace of mind that your medical bills will be covered, and that you won’t go bankrupt.

Maintain Your Health

In your life, your most valuable asset is your health. Most of us take insurance as a type of financial support we get in the event of an accident or illness. However, it’s important to keep in mind that it’s equally important to maintain good health. If you eat well, you can stay in good shape.

If you don’t have insurance, you won’t need to go to a doctor for medical checkups. Actually, a health insurance policy enables you to benefit from the “preventive care”, which is part of most plans. What you can do is see your qualified doctor for checkups and take part in other benefits like health screenings. This can help you maintain your health. Also, the insurance policy plan you have chosen can help you find out what is included.

Reduce Your Costs

It’s important to keep in mind that insurance providers offer special rates for doctors who are part of their network. So, if you have health insurance, you can reduce your medical costs significantly.

Avoid a Penalty

Aside from saving on your health care costs, an insurance plan can help you avoid a penalty as well. Today’s health insurance laws have a requirement that you should have a health insurance plan or you may have to pay a penalty for the month for which you or your partner or your tax dependants don’t show that they have the minimum coverage. And typically, this fee is based on a person or household income whichever is higher. This penalty can be avoided if you have health insurance.

It’s important for everyone to have health insurance. After all, you have no idea what is going to happen in the future. You can enjoy the best health care provided you get the right insurance policy.

Sleep Deprivation-Why Do We Need Eight Hours Sleep?

Why do we need 8 hours sleep at night, or to spend a third of our life in bed? It is now thought extended sleep deprivation, sleeping regularly only 4 or five hours a night can have harmful health effects. Long-term sleep deprivation is now liked to heart disease, heart failure, irregular heartbeat, high blood pressure, diabetes and even dementia and weight loss. Because of comfort eating it can also cause weight gain.

Short term sleep deprivation or a period of sleeplessness, as parents of babies and small children will experience can be the cause of accidents on the roads and in factories by lowering concentration levels, causing clumsiness and a general feeling of being under par. This is soon reversed after a few good night’s sleep. However during the deprived period anything learned is soon forgotten as university students will be aware.

I had forgotten what it felt like to feel to be turned into a zombie by lack of sleep but recently with the hot nights plus increased phone calls from my 99-year-old mother, both during the day and night-time, meant I was functioning decidedly below par!

At last I have just enjoyed about eight hours of blissful sleep. I awoke feeling I could take on the world and nothing would be a problem. My energy levels are high, my concentration ability has quadrupled and I have already spend an hour and a half on marketing research and it is barely nine am!

I now recall times when the children were young – I did have five children under five years including two foster children; but I was in my twenties then and more resilient then. I can truly identify with all new mums out there coping with their new babies and young children, and the dads dragging themselves off to a day’s work-load after sleepless nights; the sleeplessness compounded by the newness of the situation, but it does end.

The other group we should feel for are the carers that are looking after loved ones that need assistance 24/7. That must feel never-ending. Being exhausted on a regular basis is a dreadful feeling it saps your energy, your ability to think clearly, your sense of humour and even your spirit.

So to all those struggling new mums, parents with small and special needs children. The infirm or elderly and their carers’ take every opportunity of help offered you, will feel so much better when you are properly rested, even if it means taking an afternoon nap. After all the Spanish have a name for it, and enjoy their siester-time, when in the villages, shops close for the afternoon, opening again when it’s cooler.

There are some foods that are considered helpful in promoting sleep, we all know a glass of warm milk is helpful but also we could include bananas, nuts and seeds in our arsenal of helpful foodstuffs. Lighter bedding on hot nights also help as duvets now come in tog ratings as low as 1 and 2, I know I have just purchased one online.

So To all you sleep deprived out there for whatever reason I wish you well and an improvement to your situation.

To all new parents you might like to take a look at my new book…

‘Stress-Free Parenting – the Helping Hand for all New Mums’

It is especially aimed at first time mums and takes you from birth through the first 5 years, covering all the problem areas like, tantrums, an easy bedtime routine, sibling jealousy, preparing for schooldays and much more.

Adverse Selection and Moral Hazard: Pondering Policy Implications of Asymmetric Information

How do firms mitigate adverse selection and moral hazard derivative of asymmetric information? How do hidden characteristics or profiles exacerbate adverse selection? How do hidden actions and material changes in behavior exacerbate moral hazard? The answers to these strategic questions are critical to effective formulation and execution of optimal adverse selection and moral hazard mitigation strategies that equate marginal costs to marginal benefits. Additionally, optimal mitigation strategy minimizes the known probability and incidence of decision failures with the attendant adverse effects and maximizes the profit producing capacity of the enterprise.

In this review, we examine some pertinent and extant academic literature on effective adverse selection and moral hazard optimal mitigation strategies. Each mitigation strategy has costs and benefits. Therefore, the objective function is to maximize the net benefit of mitigation strategies. In practice, the optimal risk mitigation strategy equates marginal costs to marginal benefits by minimizing the incidence of adverse effects derivative of decision failures and maximizing the profit producing capacity of the enterprise.

Adverse selection and moral hazard are terms used in risk management, managerial economic and policy sciences to characterize situations where one party to a market transaction is at a disadvantage due to asymmetric information. In market transactions, adverse selection occurs when there is a lack of symmetric information prior to agreements between sellers and buyers, while moral hazard occurs when there is asymmetric information between the two parties and material changes in behavior of one party after agreements have been concluded.

For example, adverse selection arises in any situation in which one party to a contract or negotiation, possesses material information relevant to the contract or negotiation that the other party lacks; this asymmetric material information leads the party lacking relevant and material information to make decisions that cause it to suffer adverse effects. Therefore, adverse selection occurs when one party makes decisions without all the relevant material information, which changes the risks allocation between the parties to the transactions.

When one party has access to better or material relevant information than the other party during a transaction, it is said that one has asymmetric information. Therefore, when a party has asymmetric information, they may make an adverse selection. Adverse selection arises when the actual risk is substantially higher than the risk known at the time the agreement was reached. One party suffers adverse effects by accepting terms or receiving prices that do not accurately reflect actual risk exposure. The consequences of asymmetric information may be exacerbated by bounded rationality and cognitive biases attendant to most competitive use of information. Conversely, moral hazard occurs when a party conceals or misrepresents material relevant information and changes behavior after the agreement is concluded and is shielded from the consequences of the risks emanating from material change in behavior.

Economic and policy sciences suggest the decision makers must not only know, but indeed, understand and anticipate consequences of asymmetric information to mitigate risks of adverse effects attendant to adverse selection and moral hazard. There are classic examples from academia and insurance industry.

Non-selective academic programs attract a disproportionate number of students whose previous academic background and profile make them higher risk for academic success, retention, graduation, and placement. Indeed, this is a classic case of adverse effects derivative of adverse selection and moral hazard.

For example, non-selective admission process combines recruitment and selection which results in adverse selection. And once admitted, refusal to attend classes, refusal to complete assignments, refusal to take notes in classes, critical listening, disruptive and inattentive conduct in classes are instances of post-enrollment moral hazard that make non-selective students a higher risk for retention, graduation and placement. Please note, it is not the change in behavior per se that causes moral hazard in this instance. It is the discounted consequences from changed behavior that gives rise to moral hazard.

There is gathering evidence that some of these non-selective academic programs are increasingly willing to accept higher risks derivative of adverse selection and moral hazard because their operating budget is enrollment driven. Therefore, in the short-run enrollment is a more pressing need than retention, graduation and placement rates. The focus on enrollment is necessary but short-sighted and misguided because in practice, these benchmarks and indices are interrelated, circular and cumulative.

In the insurance industry, insured healthy females in child bearing age and healthy middle-aged females who subsequently seek creative ways to get pregnant present adverse selection and moral hazard problems. Further, insurance applicants whose actual risks are substantially higher than the risks known by the insurance company are potentially interesting case studies. The insurance company suffers adverse effects by offering coverage at premiums that do not accurately reflect its actual risks exposure.

Risks Mitigation Strategies and Some Practical Guidance

Please consult with competent professional for specific advice. The following are general guidelines based on review of extant academic literature, cumulative professional practice and best industry practices. In sum, adverse selection and moral hazard derivative of asymmetric information expose parties to transactions to undue amounts of higher risks for which they are not adequately and appropriately compensated. Therefore, it is essential for parties to take all the steps possible to mitigate risks of adverse effects derivative of asymmetric information and the attendant decision failures.

Managerial economic principles and best industry practices suggest screening and sorting to mitigate adverse selection, and incentive contracts to mitigate moral hazard. Additionally, strategic intelligence systems (SIS) that provide relevant, accurate and timely identification and quantification of risk factors is strongly recommended.

In risk management, the use of aggregate limits of liability and policy riders that proscribe post-contract material unilateral actions, and caps aggregate financial risks to parties is strongly recommended. Further, dispositive disclosure, discovery, monitoring, random inspection, and verification are highly recommended.