Health Care Finance Essay

In the United States, the financing of the health services system is extremely expensive. The most dramatic change in the financing of the health services system was the Affordable Care Act, which made the most current and largest change in the nation’s health care financing system. “The United States system of financing health care is quite distinct from those used in other developed nations; most other developed countries have a system that involves a set of services to which every citizen is entitled, which is paid for by the central government” (Kovner, 2015, p. 233). There are three major ways that the health services system is financed: private insurance, government insurance and publicly financed programs, and out-of-pockets financing. Private insurance financing and coverage varies depending on who is paying for it. Private insurance represents 35% of the expenditures and private share represents 18%. Employers typically purchase coverages for their employees through commercial insurances. These commercial insurances can include Blue Cross Blue, Aetna, UnitedHealthcare, and Kaiser. Blue …show more content…
One of the reason is waste. Waste could be referred to as over treatment, lack of care coordination, failure to execute the best optimal outcome, administrative complexity, and fraud and abuse. Many propose that the lack of coordination for patients with complicating medical conditions affect the cost of providing services. Another reason for the cost of providing services is the increase in health care services consumed. Sometimes patients end up receiving more health care than is necessary. Over diagnosis and treatments contributes to the cost of providing services and the increase in the spending of health care. Also a major reason for cost of providing services is technology. New pharmaceuticals, technology, and a better way to treat a condition is constantly contributing to the cost of providing