Waseem Alkakoz
April 30, 2015
ECOL 379
Where is the US Healthcare Heading To?
The health care system in the United States has been a contentious issue in the last decade. The rising costs and unsustainability in the system has resulted in much higher costs of health care, and yet the life expectancy is lower than most countries like Canada, Germany, and Japan (Wallace 2013). The US has the highest healthcare costs in the world, and it is estimated that about fourteen percent of health care administrative costs (about 91 billion) are wasted annually due to the inefficiency and redundancy in health administration practices (Mukau 2009). What are some implementations in the U.S. healthcare system that could potentially lower the cost of health insurance while delivering the highest quality healthcare at rates that people could afford? The introduction of the Affordable Care Act (ACA) has implemented several health care reforms that aim to expand coverage and increase health care access. The establishment of the Obama Care (ACA) has lowered the percentage of uninsured Americans, and reduced the costs of health care for many, but not all Americans. In order to improve the affordability and effectiveness of the health care system for millions of Americans, the competition between exchanges need to be maximized to produce savings and improve the quality of care. An environment where competition thrives between health insurance plans that aim to lure the highest number of enrollees will have a considerable impact on decreasing healthcare costs, while offering quality services. People acquire medical insurance to help spread out health care costs over time across different people with different social classes to make it affordable. Consumers will pay a premium as a monthly subscription fee to get covered and receive medical care if needed in the future. In addition, insured people will need to pay a deductible fee that depends on the medical plan they have. The health insurance system in the US is primarily managed by the government as in Medicare and Medicaid programs (Obama Care) that have created a health insurance marketplace where consumers can shop for coverage from private sector businesses. The government has the ultimate power to legislate and enforce tax penalties for being without health insurance as in the Affordable Care Act (ACA). The Affordable Care Act was proposed to provide most people with affordable health insurance and reduce costs of insurance plans. Although the implementation of the ACA has influenced price reductions in healthcare for many people, the data collected by Commonwealth Fund provides some evidence that middle-income people are more likely to struggle with the cost of health insurance, especially those who do not qualify for subsidies for lower premiums (Piper 2013). Some health care reforms must take place to address the rise in costs of health insurance and provide most people with affordable care. A health insurance marketplace that promotes competition must be constructed in every state to effectively lower premiums for everyone. The ACA must encourage even more competition in each state by allowing more insurance exchanges in the market. The existence of different exchanges will aid in health care cost reductions, because it will promote lower costs of health plans administration associated with marketing and sales. Additionally, the increased competition will help eliminate the cherry picking of patients with the least number of health problems by health insurers. In markets where there is little to no competition, consumers who do not qualify for a higher subsidy are usually heavily impacted by higher rate increases in premiums. But the extent of how people are affected depends on …show more content…
"The Way to Better, Cheaper Healthcare: Don 't Make It a Human Right." The Christian Science Monitor, 17 Oct. 2006. Web. 15 Apr. 2015.
Morgan, True. "State 's Largest Health Insurer Seeks 9.8 Percent Increase in Health Exchange Premiums." VTDigger. N.p., 02 June 2014. Web. 29 Apr. 2015.
Mukau, Leslie. "American Health Care in Crisis: Fundamentals of Health Care Reform." American Journal of Clinical Medicine® 6.4 (2009): 32-46. Web.
Piper, Llewellyn E. "The Affordable Care Act." The Health Care Manager 32.3 (2013): 227-32. Web.
Wallace, L. S. "A View Of Health Care Around The World." The Annals of Family Medicine 11.1 (2013): 84.
April 30, 2015
ECOL 379
Where is the US Healthcare Heading To?
The health care system in the United States has been a contentious issue in the last decade. The rising costs and unsustainability in the system has resulted in much higher costs of health care, and yet the life expectancy is lower than most countries like Canada, Germany, and Japan (Wallace 2013). The US has the highest healthcare costs in the world, and it is estimated that about fourteen percent of health care administrative costs (about 91 billion) are wasted annually due to the inefficiency and redundancy in health administration practices (Mukau 2009). What are some implementations in the U.S. healthcare system that could potentially lower the cost of health insurance while delivering the highest quality healthcare at rates that people could afford? The introduction of the Affordable Care Act (ACA) has implemented several health care reforms that aim to expand coverage and increase health care access. The establishment of the Obama Care (ACA) has lowered the percentage of uninsured Americans, and reduced the costs of health care for many, but not all Americans. In order to improve the affordability and effectiveness of the health care system for millions of Americans, the competition between exchanges need to be maximized to produce savings and improve the quality of care. An environment where competition thrives between health insurance plans that aim to lure the highest number of enrollees will have a considerable impact on decreasing healthcare costs, while offering quality services. People acquire medical insurance to help spread out health care costs over time across different people with different social classes to make it affordable. Consumers will pay a premium as a monthly subscription fee to get covered and receive medical care if needed in the future. In addition, insured people will need to pay a deductible fee that depends on the medical plan they have. The health insurance system in the US is primarily managed by the government as in Medicare and Medicaid programs (Obama Care) that have created a health insurance marketplace where consumers can shop for coverage from private sector businesses. The government has the ultimate power to legislate and enforce tax penalties for being without health insurance as in the Affordable Care Act (ACA). The Affordable Care Act was proposed to provide most people with affordable health insurance and reduce costs of insurance plans. Although the implementation of the ACA has influenced price reductions in healthcare for many people, the data collected by Commonwealth Fund provides some evidence that middle-income people are more likely to struggle with the cost of health insurance, especially those who do not qualify for subsidies for lower premiums (Piper 2013). Some health care reforms must take place to address the rise in costs of health insurance and provide most people with affordable care. A health insurance marketplace that promotes competition must be constructed in every state to effectively lower premiums for everyone. The ACA must encourage even more competition in each state by allowing more insurance exchanges in the market. The existence of different exchanges will aid in health care cost reductions, because it will promote lower costs of health plans administration associated with marketing and sales. Additionally, the increased competition will help eliminate the cherry picking of patients with the least number of health problems by health insurers. In markets where there is little to no competition, consumers who do not qualify for a higher subsidy are usually heavily impacted by higher rate increases in premiums. But the extent of how people are affected depends on …show more content…
"The Way to Better, Cheaper Healthcare: Don 't Make It a Human Right." The Christian Science Monitor, 17 Oct. 2006. Web. 15 Apr. 2015.
Morgan, True. "State 's Largest Health Insurer Seeks 9.8 Percent Increase in Health Exchange Premiums." VTDigger. N.p., 02 June 2014. Web. 29 Apr. 2015.
Mukau, Leslie. "American Health Care in Crisis: Fundamentals of Health Care Reform." American Journal of Clinical Medicine® 6.4 (2009): 32-46. Web.
Piper, Llewellyn E. "The Affordable Care Act." The Health Care Manager 32.3 (2013): 227-32. Web.
Wallace, L. S. "A View Of Health Care Around The World." The Annals of Family Medicine 11.1 (2013): 84.