If you're seeing this message, it means we're having trouble loading external resources on our website.

If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked.

Main content

Private health insurance

Approximately half of Americans rely on their employers to help obtain and pay for health coverage. This video explains the history of private insurance, how risk-sharing works, and the incentives for employers and employees to share the responsibility of health care coverage.  Created by Brookings Institution.

Want to join the conversation?

  • blobby green style avatar for user minghansun250
    at , wouldn't the insurers just negotiate with the hospitals? Why would they pay whatever the providers charge?
    (3 votes)
    Default Khan Academy avatar avatar for user
  • blobby green style avatar for user Iboa Ibrahim
    why health insurance is needed?
    (1 vote)
    Default Khan Academy avatar avatar for user
  • aqualine ultimate style avatar for user m.d 38#!8
    why is it that large number of people are uninsured
    (1 vote)
    Default Khan Academy avatar avatar for user
  • aqualine seed style avatar for user William Janis
    From to the end at , the narrator discusses the conundrum of long-term care (LTC) for a chronically ill patient. He does not mention LTC insurance, which can cover at least a portion of LTC expenditures, Reliable financial advisors often recommend that young people purchase LTC insurance.

    A second question involves the percentage of Medicaid and Medicare outlays which disappear as fraud by criminals in the healthcare system. I recall reading about a hospital administrator in Houston, who along with some physicians, diverted tens of millions of dollars in Medicare payments. Please comment on this very real phenomenon.
    (1 vote)
    Default Khan Academy avatar avatar for user
    • blobby green style avatar for user mufa862002
      first of all I think young people can/should purchase medicare /medicaid. this is because you cannot tell when you gonna fall sick or will be needing skilled , rehab care or hearing defects and many other end of life illnesses.So, despite the short comings of medicare/medicaid such as low levels of care and immunization , it still covers up 20 percent of the nursing home bills compared to private insurance.
      (1 vote)

Video transcript