One of the issues that is widely discussed and debated concerning the United States economy is the healthcare system. Unlike in the majority of developed and developing countries, the healthcare system in the United States is not public, meaning that the state does not provide free or cheap healthcare services. This paper addresses many of the factors contributing to the rising cost of healthcare.
In the United States, the health market system is defective to the citizen. Even though the market is available to all citizens; There are at least half of a million Americans without health insurance plans. The costs of health in the United States have historically been unfavorable. This can be traced to the fact that the health sector is driven by a market-based system (Fernandez, 2010; Harris, 2011). This means that most of the health insurance companies are privately owned. The companies provide including basic medical expense plans and catastrophic hospital expense plans to accommodate the needs of consumers. It also offers supplemental products that provide protection against risks, including dental, vision, disability, critical illness, accident, hospital indemnity, and multi-benefit products. For many years, the American population had been subjected to severe exploitation by medical insurers, through imposition of hefty medical covers. The establishment of the The Patient Protection & Affordable Care Act is now one of the most historical acts in the United States, considering that the act was championed by the United States president; Barack Obama. In the recent past, various policies introduced by the government have positively affected health care system in the United States. Consumers who are displeased with minimum restrictions of health care insurers may avoid signing up for insurance plans. As an example, since the beginning of the Obama care plan; health insurance for family coverage’s has risen up to $5,000 dollars. The premiums are low but the deductibles are high. Government taxes may cause little freedom and discourage patients to apply for health insurance. This can cause a downfall for physicians and organi...
The U.S. currently spends the most on health care yet 45 million people are currently uninsured. Most individuals have health insurance privately through their employers and Medicare/Medicaid are picking up some of the slack for those that do not have insurance.
Since the late 1960s the United States has attempted to develop a strategy for controlling the rate of growth of health care spending. During the 1970s this strategy relied heavily on various forms of regulation. Some regulatory programs were somewhat successful in moderating spending increases, but they generated significant opposition particularly from the powerful provider groups. These are the groups who successfully convinced Congress and the states to dismantle some of the regulatory structure and to substitute various forms of competitive approaches to controlling spending. Some of these competitive
While no one can accurately predict what impact all the changes will have on future costs, undoubtedly we are entering a new health care landscape that will be very different from the health care system of the past. This paper will attempt to explore the impact of the Affordable Care Act on current and future practices of health insurance and managed care. Additionally, this paper will address the effects of reform felt by hospital administrators and how the ACA influences their decisions moving forward.
In the article titled, "Health: Medicare and the Economy," by: Dean Foust, found in Business Week and published in 2004, it is stated that, cuts in Medicare would be bad for hospitals and other managed-care providers. Although the United States is considered the strongest country in the world, there are numerous political, social, and economic issues that require reform to improve our way of life. Reform is needed for the health care system in order for Americans to live a life that is both safe and prosperous. Health care and prescription drug costs, whose escalating prices have caused many Americans to go without adequate medical care. Health care is one of the most controversial issues in the news right now. The co...
When one examines managed health care and the hospitals that provide the care, a degree of variation is found in the treatment and care of their patients. This variation can be between hospitals or even between physicians within a health care network. For managed care companies the variation may be beneficial. This may provide them with opportunities to save money when it comes to paying for their policy holder’s care, however this large variation may also be detrimental to the insurance company. This would fall into the category of management of utilization, if hospitals and managed care organizations can control treatment utilization, they can control premium costs for both themselves and their customers (Rodwin 1996). If health care organizations can implement prevention as a way to warrant good health with their consumers, insurance companies can also illuminate unnecessary health care. These are just a few examples of how the health care industry can help benefit their patients, but that does not mean every issue involving physician over utilization or quality of care is erased because there is a management mechanism set in place.
In 1991, fewer than common fraction of USA voters felt that health care was a significant issue. just 2 years later, u. s. President urged Congress to assist him fix a health care system that "is badly broken" (Collins 78). Is that the health care system badly broken? The health care reform dialogue has captured the eye of all Americans. What brought health care reform into the ultimate public spotlight? though our treatment throughout this country is of the best quality, our access thereto care is waning due to higher and better prices. Our health care system desires basic reform. Currently, there ar dozens of reform packages in Congress, but 3 packages supply necessary recommendations toward health care reform: President Clinton's Health Security Act, Representative Jim Cooper's Managed Competition Act, and politician John Chaffee's Health Equity and Reform Access recently Act. the ultimate word health care reform package have to be compelled to embody the selection aspects of all 3 of those proposals.
It is apparent that a restructuring of the healthcare system is crucial but whether the PPACA is the answer remains to be seen. The astronomical portions of GDP spent on healthcare stunts the growth of the economy. The U.S. spends “nearly 18 percent of its GDP on health care-more than any other developed country” (Holmes). The proportion of income being consumed by the medical industry has increased for decades and will continue to do so without healthcare reform. In fact spending “has grown 2 to 2.5 percentage points faster than the economy in real terms per capita” (Wilensky). This growth can be attributed largely to the current employer-sponsored insurance. Because the insurance premiums are excluded from the employee’s taxable income, individuals tend to over consume healthcare. It is apparent that the current system without some sort of regulation is not effective. Whether the Affordable Care Act is the answer remains to be seen. Without further inquiries into the potential effects of the act it is difficult to determine the best solution.
There are certainly many ups to managed care. MCO plans can be made by choice and altered to accommodate needs and requirements creating more altered to patient plans (Book, 2012). Certain managed care plans provide disease management plans and innovations in care coordination’s which are often not available otherwise (Book, 2012). Disease management can be expensive and often creates many out of pocket costs for patients and allows practices to feed of the need for management, making managed care plans a go to place for those suffering from long term illnesses. Given that the plans are created to be more affordable there are little out of pocket costs due to stability of fees within the plan, lesser co-payments and other out of pocket costs. This in long term saves patients money not only on the plan but on the out of pocket