Cutting Health Care Costs

Cutting Health Care Costs

Thesis Statement

The purpose of this thesis is to evaluate and analyze US health care system in terms of cutting down costs of health care. This paper will elaborate different stakeholders that are involved in the health care industry and their importance when reforms are made by the government. Moreover, different strategies for cutting health care costs and the most appropriate strategy that should be implemented by the authorities will be provided in the paper. Moreover, successful planning and implementation of the selected strategy will be provided at the end of this research paper.

Problem Statement

The large portion of the US economy goes to Health care and every year, the health-related spending are increasing which means that spending on other goods and services are outpaced. This increase in cost directly affects businesses, households, local governments and the federal state (Rudin et.al, 2009). The increase cost of spending makes health insurance less affordable for the families and businesses, because there is pressure on businesses for offering overall coverage of insurance to the employees and therefore, there is immense burden on families for paying heavy cost of health related problems.

Background

There are concerns regarding the increasing health care costs and affordability of health care for families continue in spite of the ratification of inclusive health reform legislation in the year 2010. This reform is known as “Affordable Care Act” (ACA) and it has changed the health care scenario significantly by providing considerable monetary support for helping public having moderate and less incomes, afford coverage and interrelated sharing of cost (U.S. Department of Health and Human Services, 2012). This regulation provides innovative principles for the private health insurance, which also includes recognizing least advantages for health insurance, establishing new rules for private health insurance that guarantee access to coverage for people with health problems, putting limits on sharing cost for covered benefits, and limit premium and contribution disparity based on factors related to health. Jointly all these provisions radically lessen financial load for a lot of people with lesser earnings or considerable health care requirements.

The debate of federal budget in huge part rotate around the overall budget size and the mixture of new revenues and program cuts essential for bringing federal expenditure into an improved balance (Henry, 2012). There are several proposals given for reducing federal health spending and they are based on the principle that various programs of health are reaching an unaffordable level and they must be shortened. On the other hand, there is little debate regarding the amount of health currently provided by these programs and how much health the country wants to assist though federal spending in the prospect. It is a fact that health spending develops quicker than national earnings in part, as the system of health care carry on to innovate and give options of new treatment to public with serious acute and chronic sicknesses.

In the year 2010, the spending of the US on the health care of per person was $8402, as ...