HC LAW: Policy Analysis
Format APA Volume of 750 – 900 pages (3 pages) Description: The Problem
Assignment type : Essay
While it is an undeniable fact that health is among the most critical aspects that a government should ensure for it is accessible and affordable for the citizens, when health care maintenance costs consume an overly high part of federal budget, a need for reforms become necessary. Examining the current situation in the United States, the nation’s health bill is the largest in the world. The implication is that some reform measures need to be effected to address the ranging menace. In one survey that evaluated health system performance amongst eleven developed nations, UK ranked first followed by Australia. Worryingly, US ranked last just behind France. In the same survey, it was established that the US had the highest rate of mortality amenable to health care amongst the eleven nations (Khazan, 2017). What these statistics imply is that despite injecting huge amount of funds in health care, the well-being prospects of US citizens are no better than those of the citizens in nations that do not use as much resources to fund health care.
Among the aspects that have exaggerated the current US medical bill is the adoption of such policies as Medicare, Medicaid and Affordable Care Act. While all these policies are essential in enhancing the well-being of the American people, their mode of application is engulfed by numerous flaws calling for the need of critical reforms to enhance their health benefits. The two most expensive to sustain policies are Medicaid and Medicare since they are meant to offer some health care subsidies to supplement what Americans pay for their health care services. On the other hand, the ACA, which requires employers to purchase insurance coverage for their employees, has made employers to transfer these insurance expenses to employees. The resultant effect has been a reduction in salaries initially paid to employees, reduction in job offers, and employment of more part-time workers (Blase, 2011). Therefore, this policy, though well meant, has worked contra wisely. In fact, President Trump has in several times been quoted terming Obama care as a disgrace to the nation in need of being repealed.
Policy Recommendations
To address the raging menace of increased health care bill, several policy recommendations come in handy. Key among them is cutting down the current Medicaid and Medicare expenses. On this note, the government should consider giving health subsidies on basis of age as opposed to the current criterion based on salary range. Specifically, it is contended that only young people in their 20s and old people in their 60s should benefit from tax credits (Kodjak, 2017). The criterion above is based on the fact that, while people in their 20s may not be in stable employment, old people in their 60s are already retired. As such, these are the subgroups in need of medical aid. Arguably, such an adoption will eliminate the current state of affairs whereby everybody is covered even if they are in formal employment. Resultantly, the adoption will, aid in reducing the current immense health bill.
To reduce the prevailing healthcare bill, it is also imperative that the government reduces administrative expenditures. For example, US health care framework has a complex multiple payer system that prompts health care providers to interact with multiple payers. As a result, many administrative expenditures related to billing insurance related functions arise (Bentley, Effros, Palar & Keeler, 2008).). Essentially, insurance related functions include all the arrangement intended to move funds from the payer to the health care provider in accordance with the set legislations. To address this menace, the administrative overheads pertaining to health insurance should be minimized. Currently, the administrative overheads by far exceed the spending by public sector programs such as Medicare and Medicaid. The implication is that many wastes exist in the health sector that have contributed to the current escalation in health care bill and, hence, should be eliminated.
Another approach that the federal government can take to cut the prevailing health care bill is setting a fixed limit of Medicaid and Medicare funds granted to the state governments. Currently, states are funded on basis of their spending an aspect that may tempt them to overspend (Fichtner, 2014). Specifically, the federal government utilizes the Federal Medical Assistance Percentage (FMAP) to gauge the matching funds to be granted to a state, a criterion that may tempt them to overspend. By setting a funding limit, the states will then be able to prudently utilize their resources in funding health care programs such as Medicaid and Medicare, an aspect that will cut the current excessive federal spending.
Conclusion
While US spends more funds in health care services than any other nation in the world, research has established that health outcomes are no better than they are in several developed nations that inject relatively limited monetary resources in health care. The current high bill in healthcare seems to be based on the prevailing intensive funds to sustain public health programs such as Medicaid and Medicare. While these public health care programs have gone a long way in enhancing healthcare accessibility, the current intensive funding to sustain them is worrying. By embracing cost-cutting strategies like the ones recommended above, the government will be able to reduce the current wage bill, yet without adversely affecting the wellbeing of the American citizens.
References
Bentley, T. G., Effros, R. M., Palar, K., & Keeler, E. B. (2008). Waste in the U.S. Health Care System: A Conceptual Framework. Milbank Quarterly, 86(4), 629-659. doi:10.1111/j.1468-0009.2008.00537.x
Blase, B. (2011). Obamacare and the Employer Mandate: Cutting Jobs and Wages | The Heritage Foundation. Retrieved from http://www.heritage.org/health-care-reform/report/obamacare-and-the-employer-mandate-cutting-jobs-and-wages
Fichtner, J. J. (2014). The economics of Medicaid: Assessing the costs and consequences. Arlington, VA: Mercatus Center at George Mason University
Khazan, O. (2017). Why American Health Care Is So Much Worse Than Europe’s – The Atlantic. Retrieved from https://www.theatlantic.com/health/archive/2017/07/us-worst-health-care-commonwealth-2017-report/533634/
Kodjak, A. (2017). Here’s What’s in The House Republicans’ Health Care Bill: Shots – Health News: NPR. Retrieved from http://www.npr.org/sections/health-shots/2017/05/04/526887531/heres-whats-in-the-house-approved-health-care-bill
