Final answer:
People may have inadequate health insurance due to lack of employer coverage, high healthcare costs, temporary or low-paid work, and issues related to being considered high risk by insurers. Even with legislation like the ACA, the high cost of care remains a hurdle leading to underinsurance, where out-of-pocket costs are high relative to income.
Step-by-step explanation:
People may have inadequate health insurance coverage for several reasons. Income levels above the poverty line coupled with employers not providing coverage often result in inadequate health insurance. Temporary, part-time, or low-paid work provides limited insurance benefits or none at all. Additionally, the cost of healthcare can push individuals and employers out of the market, leaving many uninsured or underinsured. Those with pre-existing medical conditions may find themselves facing higher premiums or outright denial of coverage. Before the Affordable Care Act (ACA), over 32 million Americans were uninsured, often leading to the use of emergency rooms, which is the most expensive form of healthcare.
Underinsurance occurs when people spend a significant portion of their income on healthcare costs not covered by insurance. Even with ACA's increased eligibility for Medicaid and insurance protections, skyrocketing healthcare costs continue to be a problem. The uninsured and underinsured face challenges, such as relying on emergency care, experiencing poorer health outcomes, and dealing with the financial burdens of medical bills, contributing to higher costs for taxpayers and insured individuals alike due to economic externalities.