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‘More than 60,000 people have cancelled their private health insurance policies over the last year’ (Health Insurance Authority, December 2012) - Leaving Cert Economics - Question 7 - 2013
Question 7
‘More than 60,000 people have cancelled their private health insurance policies over the last year’ (Health Insurance Authority, December 2012). State one possib... show full transcript
Worked Solution & Example Answer:‘More than 60,000 people have cancelled their private health insurance policies over the last year’ (Health Insurance Authority, December 2012) - Leaving Cert Economics - Question 7 - 2013
Step 1
State one possible economic reason why people may have cancelled their policies
Answer
One possible economic reason for the cancellation of private health insurance policies is increased health premiums. High premiums make it very expensive for individuals and families to maintain their insurance coverage, leading some to cancel their policies in an effort to reduce their overall expenses.
Step 2
State one possible economic effect of this reduction in private health insurance
Answer
A possible economic effect of the reduction in private health insurance is increased pressure on publicly funded health services. As more individuals rely on public hospitals due to the cancellation of their private plans, there is greater demand for services, which can potentially overwhelm the public system and affect the quality of care provided.