The United States of America is a country that has experienced tremendous achievements in the establishment of a model health care system. The current system is indeed functional within constraints of the impending economic dilemma experienced by many world economies. Despite these problems the giant economy’s analysts strive to establish spending rates, which are manageable in the current situation. This is amid growing population concerns that could significantly impact spending variables (Shi and Singh, 2009). In as much as there are measures established towards streamlining the national expenditure budget on health care there is need to establish better systems aimed at promoting sustainable economic achievements.
Current Level of National Healthcare Expenditures
The current national healthcare expenditure levels simulate a drift towards the emancipation of critical health attention systems. The mode regarding service provision in america associated with America is mainly operate though the already founded public and private wellness care entities. Yet , the greater part of health care organizations are privately owned plus this includes a particular impact on the manner in which the system fundamentally operates (Shi and Singh, 2009). The particular support of health care programs is mainly through Medicare, Medicaid, Veterans Well being Administration, Children’ s Wellness Insurance Program, and private insurance coverage companies, which provide key support for the essential health care system. The current expenditure in the United State’ s medical care stands in a big figure regarding 16. 3% from the country’ s Gross Domestic Product (Herman and Alison, 2009). This figure is unfortunately ranked among the maximum going by the present world rates.
This specific trend may progressively surge as population variable raise against a backdrop of fluctuating market value associated with the United States Money. The Actuary office found in Medicare and Medical planning project that this spending level is bound to increase to about 20% inside by the year 2019 (Herman and Alison, 2009). An explanation of this number indicates that physician solutions account for over even just the teens, pharmaceuticals account for 10%, hospital care accounts regarding 32% of the total expenditure (Herman and Alison, 2009). The spending amounts have been increasing progressively as the years keep on progressing. In the yr 2009 for example, the spending level began to be $2. 51 trillion bucks, which translates to $8, 047 per person plus 17. 33% of the particular Gross Domestic Product going by the current estimates of the total PEOPLE human population (Herman plus Alison, 2009).
Is usually Spending Too Much or perhaps Not?
These investing levels are relatively great going by the present estimates of the planet economic and spending general trends. These consistently high statistics are due to the adjustments going on in typically the medical industry with regard to current legislation provision inside health care, technology alter and increased need regarding medical personnel in the particular newly established centers. Financial experts postulate that the particular spending trends exhibited in health care are fundamentally high to the stage that other economy sectors are feeling the tension (Shi and Singh, 2009). The reason being health care will be internationally rearded as a basic human right hence changing some of their trends has proven in order to be an uphill task. These factors were furthermore fundamentally established through a crucial review of the approaching congress budget recently authorized by benefit office.
Other variables leading to be able to this kind of an association include an raise of the expenditure ranges in health care insurance coverage, drug prescriptions, and scientific enhancements (Lemco, 1999). Found in addition the role enjoyed by the factor regarding income variables is furthermore a major contributor. A new recent study conducted upon member countries from the Corporation for Economic Co-operation and Development (OECD) that the US is a fellow member demonstrates it spends fairly high compared to other member states. However, following conducting sufficient statistical analysis it was established that the figure is method below the standard median for OECD after which often analysts attributed this reality to high spending designs on the average US citizen.
Where we as a nation, ought to add or where we should reduce
There is dire need to carry out a cost benefit analysis on the state of affairs concerning United State’s impending high health care costs. The responsibility of health care is spread across many stakeholders all who aim at guaranteeing accessibility to these basic services. Thorough stakeholder involvement would serve to identify some of gaping holes leading to the daily increasing costs (Shi and Singh, 2009). Stakeholders responsible for paying health care services need to stage focused group discussions in order to identify critical areas of health care that need more attention. This would ultimately involve households, businesses, and Government departments. The Agency for Healthcare Research and Quality launched a Medical Expenditure survey in order to establish areas where citizens tend to spend more, the age groups concerned and the modes of payment. It was established that a good percentage of United States citizens spend significantly on children health care services and among the vulnerable groups include age groups 0 – 18, 45 – 54, 65 – 74, and 85 and over (Shi and Singh, 2008). Among these groups, household contribution came more from the age group 19 – 64 which represents the working adults.
This signifies that there is need for the Government to establish elaborate insurance plans, which offer relative packages with due consideration of citizen status at relative points as opposed to the utilization of fixed plans. There is also need for a shift in focus towards the expenditure in preventive healthcare, as this would ultimately benefit the population in a great way (Shi and Singh, 2009). This should essentially implemented in a progressive fashion through the sensitization of the population on the need to lead healthier lifestyles in order to cut household health care costs. There is also a need for future national healthcare expenditure plans to include the involvement of projected economic analyses which can be subjected to periodic changes to incorporate the constantly changing variables.
How the health care needs of the general public are paid
Health care needs for the general public are paid for by various organs established through certain institutional framewworks. Some of the organs responsible for paying healthcare bills include health insurance companies most of which are privately owned. The Employees Benefit Research Institute indicates that health insurance plans purchased through employer enabled plans account for 59.34%; plans purchased through individual arrangement account for over 8.94%; and Government supported plans area accounting for 27.83% (Herman and Alison, 2009). There is a strict allotment criterion, which is based on the provision of eligibility plans for the existing employee database. The Medicare plan is generally meant for the older resident citizens who are over 65 years of age while Medicaid targets vulnerable populations with specific focus on those who are financial disadvantaged; these account for 3.13% for Medicare and 13% for Medicaid of the total national health insurance expenditures according to current statistics (Herman and Alison, 2009).
There are government plans, which cater for the insured lot of the population who are mostly immigrants and some able persons financially. However, data from the US census bureau of statistics show that this figure, which is about 16.12% of total insured health care cost, goes unaccounted for since these are in the form of uncompensated plans (Lemco, 1999). In a recent study carried out by economic analysts it was established that high health care costs were partly attributed to the influence from inflated bills as seen in private establishments. These are responsible for the current 15% out of pocket personal initiatives to cover for extra unaccounted for costs, which is a growing among mainstream healthcare practitioners.
Forecast of Future Economic Needs of the health care system
The trend in the healthcare system postulates an increase in the annual expenditures for both the government and private health providers. For instance, the national healthcare expenditure per capita is bound to rise to a high of 17.3% according to the annual percentage change rates. The nursing home care expenditures are also bound to rise to an projected increase in the number of citizens belonging to the older population. This figure is projected at reach well above $144.1 billion US dollars, which has been occasioned by a slower price growth of health related commodities (Shi and Singh, 2008). This will impact on health provision by Medicare and Medicaid programs since majority of these persons fall under their jurisdiction.
There will also be an increase in expenditure budgets of majority of physician and clinical service providers. These needs are important in enhancing the general health care of the American citizen. They are also in pursuit of the achievement of the Millennium Development Goals which envision the development of health care programs towards sustainability while focusing on future population fundamentals (Shi and Singh, 2008). These needs can be achieved through the development of efficient funding mechanisms, which pursue a bottom up approach as opposed to the current top down approach. This fundamentally reduces the governments burden on its citizens for catering for their healthcare. Another approach that can be used is the pursuit of unilateral health plans, which incorporate citizenship goals and elaborates on the decentralization of insurance health programs.