Final answer:
The statement about young independents seeking health insurance that fits their lifestyle and concerns, such as good health, appearance, price, and flexibility, is true. High premiums for high-risk individuals may lead to opting out of insurance, and moral hazards can reduce healthy behaviors. Preventive healthcare and critiques of the current system also play roles in the discussion.
Step-by-step explanation:
When considering the statement about young independents looking for health insurance policies to fit their lifestyle, focusing on maintaining good health and appearance, while taking into account the price and flexibility, it seems to reflect realistic concerns. Young individuals with lower incomes are likely to be selective about policy features and may refrain from purchasing comprehensive insurance due to cost concerns. However, insurance premiums based on actuarially fair levels take into account various risk factors. For example, individuals with chronic diseases or elderly people would face high premiums based on their expected health care costs. Similarly, women aged 18–44 tend to consume more in health care, leading to higher premiums, just as young male drivers might pay more for car insurance due to the higher likelihood of accidents.
Nevertheless, the health insurance system faces criticism due to moral hazard, where individuals with insurance may engage in less healthy behaviors or overutilize medical services, knowing they have coverage. Furthermore, people may be underinsured, facing high out-of-pocket costs despite having insurance. Private insurance, whether employment-based or directly purchased, often includes deductibles and co-pays, further complicating the financial burden on insured individuals. Progressive politicians argue for preventative healthcare to reduce costs and improve health outcomes, while also critiquing privatized healthcare for incentivizing treatments over cures.