Health Insurance And Health Care

1504 Words7 Pages
In the United States, health care finance is a vital aspect for health delivery systems to function. The distribution of national health spending has several financing sources, including a major component known as health insurance. The distribution of citizens with health insurance coverage has continually increased throughout the years, however millions still remain uninsured. The establishment of The Patient Protection and Affordable Care Act has expanded health care coverage to millions of Americans, making it more accessible and affordable while decreasing the number of uninsured. One vital aspect of health insurance is employment-based health insurance which is labeled as an accident in history, and remains a cornerstone of the U.S health care system (Blumenthal, 2006). In addition to employer-based health insurance, two other health plans are important aspects in U.S health care. These include fully-insured health plans, and self-insured health plans. All of these components have an impact on health care finance. The United States has the most expensive health care system in the world, with the most per capita health expenditures compared to other nations (Bodenheimer, 2005). The distribution of national health spending has five major sources of funds, including: out-of-pocket, health insurance, other third party payers and programs, public health activities, and investment (National, 2012). According to the census of 2009, out of pocket expenditures were 299.3 billion dollars. Health insurance expenditure was 1,767.4 billion dollars. For the source of funds from third party payers and programs, expenditures were 186.1 billion dollars. Public health activities expenditures were 77.2 billion dollars, and investments as a so... ... middle of paper ... ...-insured health plans can give organizations better cash flow, tax benefits, a greater degree of flexibility, and reduce administration costs (Understanding, 2012). The article (2012) states that the employer is also able to set the premium rates based on their claims history, as well as adjust the plan in other ways to cut costs. The U.S has the most health care expenditures in the world, with the majority of funds coming from health insurance. The number of people uninsured has decreased with the introduction of the Patient Protection and Affordable Care Act. The PPACA has made health care more affordable and accessible to millions of Americans, including those of low income situations. Different health care plans allow individuals to choose the best plan. Financing is vital for delivery systems to continually improve and advance health care in the United States.
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