Health policy issue

Health policy issue

Thesis statement

“High cost of healthcare requires the introduction of insurance policies to reduce healthcare cost'

Background of the problem

USA is a large state with billions of people residing in the region. Regardless of being a developed nation, it is experiencing health care crisis. The basic area requiring attention is the huge number of people who are uninsured; cost of healthcare services rises more than wages and inflation, and shift of healthcare cost from employers to workforce (Sood et al., 2007). The number of people who are uninsured is in millions, and the basic reason for this is their lack of affordability or lack of insurance provided by an employer due to the high expense (Singer, 2008). Most of the part time, seasonal and undocumented workers do not have any health insurance. Moreover, around fifty million people are also underinsured, and this number is increasing (Fiedorowicz, 2008).

Due to the ongoing increase in the cost of health care services, high prices of prescription medications, and lack of proper access to health care services have deprived the uninsured people to pay for the basic care. The people in America are paying the high cost of healthcare if considered in terms of per capita, but the level of services, which they are obtaining are far less than anticipated. This lack of insurance has led to around 101,000 deaths a year (Ross, 2008). As a result of the high other administrative costs and high executive salaries, the insurance providing companies are raising premiums and imposing increased financial burden on people. In 1960, USA spent only 5.2 percent of GDP on healthcare. In 2004, it spent 16 percent, and it is expected that this number will rise to 25 percent by the year 2030 (Davis and Stremikis, 2009).

Affordable Care Act

Due to the health care crisis in America, president Obama signed an act in 2013. It was a comprehensive healthcare act which covered all the necessary aspects in detail. The act is expected by be completely implemented by the year 2014. It will provide a new structure for the insurance market dealing in private health. It will place a special focus on an individual who buy insurance coverage independently without their employers involved. It will also comprise of small business owners. The individuals and small business owners will be supported by the formation of American Health Benefit Exchanges. It will enable them to gain an access to insurance plans. The plan will require individual to have a health insurance to fulfill the minimum requirements for health coverage by 2014. It is a mandatory insurance, which should be acquired by each individual for himself and his dependents. According to the law, if any individual fails to insure him or his dependents for healthcare, he will have to pay a certain amount of tax. The government will provide some individuals with subsidies to help them pay for the premiums connected to insurance while others will be exempted from the mandate (Swendiman, ...