Running head: HEALTH PROBLEM ASSIGNMENT 1
Health Problem Assignment Mariah Delaire HCA 600 December 20, 2015 Dr. Robert Clegg
HEALTH PROBLEM ASSIGNMENT
2
Health Problem Assignment The current health care system in the United States is one that lacks standardization and efficiency, resulting in individuals not being able to obtain quality health coverage that accommodates their needs. One of the largest problems the U.S. faces is the cost of health services, resulting in individuals not being able to afford proper coverage. Between the years 19651970, after Medicare and Medicaid programs were created, government expenditures for health care services and supplies grew from $7.9 billion to $18.9 billon (Shi & Singh, 2012). During the 1980s, health expenditures continued to grow, however by the 1990s the rising costs slowed down which was attributed to control over payment and utilization through managed care (Shi & Singh, 2012). In 2008, the U.S. spent $2.34 trillion on health care which amounted to 16.2% of GDP, and if this type of spending continues, health care spending could amount to 25% of GDP by 2025, 37% by 2050, and 49% by 2082 (Shi & Singh, 2012). This type of demand expands job opportunities for many, however issues will arise in regards to controlling the costs of health care. Some major contributors to overall cost is third party payment, imperfect markets, growth of technology, increase in the elderly population, multipayer systems and administrative costs. The growth in technology is one major contributor to the overall cost because it creates a higher demand for health services. New technology is also expensive to develop because there are many costs that occur during research and development, which are included in health care expenditures (Shi & Singh, 2012). Another contributor is the increase in the elderly population because of longer life expectancy. Due to longer living populations, there is an aging boom which has caused the elderly population to outpace growth in the nonelderly, creating a large population that is likely to need more health services than younger individuals (Shi & Singh, 2012). The
HEALTH PROBLEM ASSIGNMENT
3
increase in the need for health services will result in health care expenditures to increase unless something is done to prevent the major spending. In order to control the costs of health care in the United States, which will allow for individuals to obtain health coverage and access to quality care, something needs to be done. An option to contain costs would be to utilize a singlepayer system with topdown control to decrease health care expenditures, making it more affordable. A single payer system would allow for a public agency, such as the government, to finance health care while the delivery of care can be through private agencies (Physicians for a National Health Program, 2015). This would allow all U.S residents to be covered for medically necessary services along with medical supply costs. In conjunction with a single payer enterprise, topdown control could be used to establish budgets for entire sectors of the health care system (Shi & Singh, 2012). Providers get paid out through the distribution of funds that are based off of global budgets so total spending remands within certain limits (Shi & Singh, 2012). However, this type of system may create issues with the quality and delivery of services because providers may not be as responsive to patient needs due to the lack of incentives. The strict budget may also cause nonlife threatening services to be cut back, creating issues with preventative and routine treatments. The United States needs to stray away from the current fragmented system of cost shifting and bottom up control, to make room for more efficient frameworks that allow individuals to obtain quality care they deserve and need.
HEALTH PROBLEM ASSIGNMENT
4
References Physicians for a National Health Program. (2015, December 13). SinglePayer National Health Insurance. Retrieved from PNHP: http://www.pnhp.org/facts/singlepayerresources Shi, L., & Singh, A. D. (2012). Cost, Access, and Quality. In Delivering Health Care in America (pp. 471486). Burlington, MA: Jones & Bartlett Learning LLC.