UNIVERSAL HEALTHCARE

Universal Healthcare

Universal Healthcare

Introduction

In most developed countries of the world, the government takes the lead role in the delivery of health care services. In the United States, the private sector plays a crucial role in the health system. Much of this is explained by the American traditions of self-reliance and avoidance of government regulation. Americans have steadfastly resisted attempts to establish the federal government as the controlling power of the healthcare system. This reliance on the private sector for the delivery of healthcare services has led to a patchwork of private and public systems of insurance coverage and services (Borger et al. 2006). Major healthcare services not adequately provided in the private sector include environmental protection, public health, support for biomedical research and training, and care for vulnerable populations; the US government has been most concerned and involved in these areas. Many of the characteristics of the US healthcare system are related to beliefs and values held dear by Americans freedom, individualism, and capitalism.

In the last few decades, Americans have witnessed an increase in the cost of healthcare such that it has become difficult for most Americans to afford the cost of primary healthcare premium. Based on health insurance system, United States has one of the most expensive healthcare systems in the world with a growing number of people who cannot afford to meet the cost of rising healthcare (John and Justine). Health insurance premiums have been on the rise growing at an average of double digit percentage points in the last five years. Economist have pointed out that the cost of healthcare premiums has been growing at a rate that is 2-3 times the rate of inflation, which means not most Americans are able to afford the cost of health insurance (Cook, Render, Woods, 2010). Although this problem is mainly confined to low income American, recent economic downturn has revealed the vulnerability of American healthcare system. There are more middle-class Americans who have been netted into the problem. At the same time, rising health care cost is also becoming major burden for employers. Most employers are not in a position to meet the rising cost of healthcare services. Consequently, the total number of employers providing health insurance coverage for their employees has decreased from 69% in 2000 to 60% in 2005 (Borger et al. 2006). It is postulated that the rising cost of healthcare is one of the main reason why a growing number of manufacturers are folding their operations and investing in other countries. To get a glimpse of simple statistics major employers in United States are feeling the pinch of rising healthcare cost. General Motors, one of the largest manufacturers in United States spends approximately $5.6B every year in healthcare (ADA). This is approximately $1,500 for every car the company produces. Chrysler spends more than $2.3B on healthcare which means that the company spends more on healthcare than it does on steel (ADA). Ford spends about $10.6B on healthcare (ADA). This is just direct employee healthcare cost and ...