Essay about Summary

642 Words Nov 3rd, 2012 3 Pages
Health Care Service Corporation Market Department

To: Denise A Bujak, Vice President

From: Market Research Assistant

Subject: Summary Report-Information about Health Care

Date: 28 June, 2011

The purpose of this memo is to summarize three popular writer’s views regarding the U.S. health-care system. Chris Farrell, Steve Forbes, and Greg Nelson analyze the current market trends and offer us their methods to improve the economy of the health insurance industry.

Summary

In general, there are some flaws in the U.S. health-care. All three writers point out different ways to fix it. In their passages, the main point of distinction involves government intervention in
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Forbes’s argument calls for less government intervention in the current insurance market. He thinks Obamacare starts to set up a government health insurance company competes with the private carriers. It is contrary to the principle of free-market. Forbes says, “Nongovernment insurance companies will become vassals and virtual subsidiaries of the Washington-run system” (17). After that, we could see government participation lead us to lose lots of benefits and push us in a passive position.

Forbes paint a picture of government intervention will threat HCSC, here Greg Nelson point out another solution to reduce cost on the health care. Nelson found about 30 percent of U.S. health care dollar is spent on claims administration. In several companies, accountants put some unnecessary and unclear cost in this column. He found a fact, “Medicare operates with about 3 percent of premium dollars going toward administrative cost” (64). It is hard for us to run a profitable business on lots of administrative cost. For HCSC, we had better to check our administration cost and make more transparency in the actual cost of services. It will help us reduce some unnecessary cost.

Conclusion

Above all, Farrell and Forbes are estimate future market fluctuate influenced by the U.S. health care reform. Nelson thinks the best way to reduce the health-care cost is cut down administration cost. However, we don’t know what will be

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