Public Vs. Private Health Insurance for Children

Lately we've been hearing a lot about SCHIP and children's health insurance and I have decided to do some research and let all of this sink in. I recently read a news article about parents that couldn't afford health insurance for them or for their children. This is not only a political issue. This is a personal issue. People are coming out and defending themselves that they can't afford health insurance and it REALLY has made people think about health insurance for their children.

First, health insurance is much cheaper for children than an adult. According the chart I'm about to show you, the costs (after adjusting for health differences) for children's private health insurance is $795 and public health insurance $719. For adults, it's $3,145 for public and $4,410 for private. Here is a graph that shows the differences in costs. The source of the graph is Hadley and Holahan 2003/2004. I found the graph at Center on Budget and Policy Priorities here.

Secondly, what should families do that can't afford health insurance for themselves and their children? Should they get health insurance for their children first, and after the children grow up, then get health insurance for themselves? Of course, it's best to have health insurance for you and your family. Another thought, one might consider catastrophic health insurance with a high deductible and if a major medical expense comes up, you will be covered for the majority of the costs and the plan will cost less.

Also, public health insurance and SCHIP are good when the costs of treatment exceed the policy of private health insurance.