State vs. Market in Provision of Health Insurance

The present work deals with the health insurance, the views of how health insurance is provided and with the related problems. The objective is to outline theoretically and from the aspect of insurance the principles of insurance, to define the estate of health and its specificity and the problems associated with insurance. The next theoretical part deals in general with the arguments favouring the interventions by the government and with the government failures. In the analytical level, there is the effort to describe how the health insurance system in the U.S.A. is working, namely in the country the health system of which is the closest to the market model, and to compare it with the European systems. The main problems of the health care systems in the U.S.A., namely the high prices, number of uninsured persons that are attributed right to the market failures, are viewed from the perspective of government failure and regulations. A historical view of the operation of fraternal societies is included. Such societies successfully operated without any government interventions and their original legacy was practically destroyed through government interventions.