HEALTHCARE REFORMS

The Major Issues around the Healthcare Reform

Abstract

This research paper focuses on the Health care Reform. Healthcare reforms play vital role bringing needed changes in existing healthcare regulations in order to improve healthcare services provided to citizens. There are many stakeholders who are responsible for drafting needed reforms and are directly affected through these proceedings. They include; Government, Healthcare service providers, and Citizens. This research paper will bring to light core issues which are discussed and analyzed in healthcare reforms.

Table of Contents

Introduction to Healthcare Reform1

Background and Current Status of Healthcare Reforms1

Key Issues related to Healthcare Reforms2

Healthcare Rationing2

Healthcare Insurance Coverage2

The Supply Side Issues3

Growth in Healthcare Spending4

Discussion/Analysis4

Conclusion6

References7

Appendix8

The Major Issues around the Healthcare Reform

Introduction to Healthcare Reform

This research papers focuses on Healthcare Reforms and issues surrounding these reforms. The reforms through which government initiates, changes or discusses policies regarding healthcare of a country/society are known as Healthcare Reforms. Healthcare reforms are initiated with an objective of increasing the availability and accessibility of healthcare services to American. First, the research paper will shed light on background and current status of healthcare reforms, then, issues will be analyzed highlighting pros and cons for each issue. Finally, analysis to two major issues will be presented, one against reforms and another in favor of it.

Background and Current Status of Healthcare Reforms

Healthcare legislation started with the initiation of Medicare in 1965 by Lyndon Johnson. Then in 1985, Through COBRA, amendments were made ERISA of 1974. Most recently, President Obama endorsed the patient protection and affordable care act which was focused on removing worst practices committed by insurance firms.

Currently, HealthCare spending is around 18% of GDP, and it is expected that this trend will rise in the future. By 2040, this would reach 36% of GDP if corrective actions are not taken in upcoming reforms. This scenario presents a challenge for government as well as individuals who are health insured. Most of healthcare expenditures and funded by the federal government budget and this trend continues to rise, Medicaid and Medicare spending will rise by around 15% in next 25 years. Significance of this issue can be further analyzed by the fact that around 46 million U.S' citizens are without health insurance, and this would certainly rise in the next couple of decade (Executive office of the president council of economic advisers, 2009).

Key Issues related to Healthcare Reforms

Healthcare Rationing

Other major issues such as healthcare coverage are inter-related with the concept of Healthcare Rationing. Rationing can be described as an allocation of scare resources. In terms of healthcare, it means providing healthcare services to those individuals who have the ability to pay for services. This definition may give a sense of inequality but, the fact is resources are scare i.e. when supply of healthcare services is less than demand, tough choices are required to be made. Rationing is allocated through different ways. Rationing is allocated by insurance firms based to individual's salary range, type of employment, etc. Rationing is also done based on price, or in other words, based on ...