Voucherizing Medicare

[Name on Institution]Voucherizing Medicare

Introduction

As the individuals become elder, they visit their physicians and locate themselves in the hospice frequently. In 1965 prior to Medicare initiated, majority of older adults strived to provide financial support for their medicinal cure, and their off spring and grand-kids went through as well. Now, Medicare establishes the doctors and hospice residencies supplementary within their means for elderly and those who are disabled, and since 2003 the strategy takes in proportion of the price of prescription medications that are used to save life. Sure enough, every American belonging from any group of age gives worth and promote Medicare.

Discussion

Medicare is More Efficient than Private Insurance

An imperative point for discussion that is possible to arise is the usual misapprehension that Medicare is extra effective as compared to classified indemnity of health. The disagreements give the impression of being authentic; the costs of administration of Medicare are just 2% of entire expenses and the government takes in mono-posonistic authority to settle down the charges with the suppliers, acquiring benefit of financial systems of extent. The solitary issue is that these two spots unclear the most critical fraction of this program.

The “Government Accountability Office (GAO)” has constantly identified the fraud of Medicare to be 10% as a minimum. This becomes manifested to be $55 billion and $34 billion respectively for the year 2011.

The addition of financial resources would increase the production of services and reduce waiting times. In the short term, this solution has positive effects. But not being a structuring action addressing the causes at the root of delays, it is not effective in the long term. Moreover, an increase in health spending (relative to GDP) does not guarantee an increase in life expectancy of its citizens.

In contrast, the United States is the country that spends the most money in health (in terms of its GDP), but has the average life expectancy is the lowest. All of this is explained by the principle of diminishing returns. There is therefore no relationship between the growth of health spending in developed countries and the effective improvement of public health. It is even harmful to spend more in the health care system even though it could linger for other determinants of health that contribute more to the reduction of mortality in the population.

Private Financing of Health Care

Proponents of a parallel private health system (duplicative) believe that the introduction of private financing of health care (by subscribing to duplicative private insurance) will resolve or at least minimize the extent the problem of waiting lists in health. However, waiting lists are generated by a service offering insufficient to meet demand. It is therefore necessary to increase the supply of service if you want to diminish the problem of waiting lists. And to increase the supply of services, increase the medical staff in case of labor.

Yet nothing authorizes us to believe that increased funding for medical and hospital services (private funding) will increase our medical staff. As we are reminded the Council ...