U.S. HEALTHCARE COST

U.S. Healthcare Cost

U.S. Healthcare Cost

What are the major drivers of the rise in health care spending? How will the ACA affect these areas?

The United States of America is one of the countries with the most expensive health care system in the world. U.S. spends on health system more than any other country - both in absolute terms and in relation to gross domestic product (GDP) per capita. Thus, only in 2007 the U.S. spent on health 2.26 trillion, which amounts to 7,439 dollars per person. According to recent estimates in the U.S. health care consumes nearly 16% of GDP. It is expected that the share of GDP allocated to healthcare in the U.S. will increase to 2017 will amount to 19.5%. However, over the past 30 years, an increase of this sector is mainly due to government programs that could seriously undermine the financial stability of the country. The major drivers of health care as explained in Health Policy Education from the Henry J. Kaiser Family Foundation are:

Technology and prescription drugs;

Rise in chronic diseases, and

Administrative costs.

The ACA affects these areas through:

Comparative Effectiveness Research (CER) Funding, which evaluates diverse strategies and interventions to diagnose, prevent, monitor health conditions and treat. In order to commission CER guided by patients, caregivers, and the broader health care community. ACA established the Patient-Centered Outcomes Research Institute (PCORI).

Increased federal regulation and oversight of health-insurer practices and premiums;

Medical delivery systems' refocusing into patient-centered systems and develop the quality of care and coordination (e.g. medical homes, ACOs).

Reforms in payment, which plan to shrink expenses for hospitalizations and treatments consequential from poor quality of care or errors;

Rising price and competition transparency in insurance policies sale by Health Insurance Exchanges;

How can health care be made more affordable without limiting access to necessary care?

Without a proper health care system, a society cannot make proper economic progress. That society's labor force will be less productive. No matter how rich, a society must efficiently provide effective medical care for all of its members not only for the privileged ones. In an advanced society, medical care is a right, not a privilege.

Health care is a major sector of the U.S. economy, but this system may not be sustainable (Samuelson, 2009). The major health care legislation passed in 2010 promises to improve the lot of millions of uninsured people and those with preexisting conditions, who wish to transfer providers. Nevertheless, health care in the United States still faces major challenges. Most Americans agree that their current system is flawed, but they do not at all see eye to eye about the solution. This commentary briefly analyzes the U.S. health care system in terms of international comparisons, the orientation of its physicians, and the role of insurance companies. It makes a case for a nonprofit, single-payer system that will enable to become more competitive with other industrialized countries.

The American health care system suffers from two very broad problem areas, one philosophical and the other mechanical. The philosophical issue is both emotional and political in ...