Health Care Financing

In broad aspect, healthcare financing is considered as an asset of health care delivery system, which consists of three significant things including financing, insurance, and payment (Shi & Singh, 2015). Financing, insurance, and payment work all together to deliver effective health care services for patients. According to Shi and Singh (2015), financing determines who can and can’t have access in healthcare by obtaining public and private health insurance. Health insurance serves as a protection against different risks and play as a financial backup plan from unexpected events such as being sick and hospitalized (Shi & Sing, 2015). In addition, health insurance can be categorized as public and private health insurance. Public health insurance

Through health insurance, the demand and the use of health care services increases (Shi & Singh, 2015). People tend to obtain more medical services because “insurance lowers the out-of-pocket cost of medical care” (Shi & Singh, 2015, p.197). Thus, people consumed health insurance to save money, which increase the ability of health care to provide more services. It simply means that the more people who are insured, the more health services can be offered. In addition, health insurance increases the access to health care system and lessen the financial burden or health cost of the consumer particularly the poor people. It provides public and private health insurance, which helps people to choose from different plans and benefits of health care services. Consequently, financing also impacts the supply of health care and provision of health care professionals (Shi & Singh, 2015). To begin with, Shi and Singh (2015) stated that new services and technology will occur when services are covered by insurance. While on the other hand, the distribution of health care professional increased because of the high demand of services. Basically, the more health services offered, the more health care providers needed. Hence, financing impacts health care system in various