HEALTHCARE FINANCE AND REIMBURSE

Healthcare Finance and Reimburse

[Name of the Institute]

Health spending and Financing

The United States spent around 15% of its gross domestic product on Medicare in 2003. The average rates of developed nations have invested around 8.6% of their GDP on total healthcare. The united states invest more money per capita on healthcare as come to any OECD (organization of industrialized countries).From 1998 to 2003, the average medical spending per capita in the country increased by 4.6% as compare to the OECD members who rate is 4.5% per year (Chua,2006).

The main source of medical funding in all the members of OECD (except USA, Mexico, and Korea) is derived from the public sector. In the states, the government spend 44% of their money on provide g healthcare benefits to its people, which is quite less as compare to the OECD countries where the average percentage is around 72%. (Chua, 2006). In the United States, the private insurance companies and the private citizens are responsible for providing healthcare benefits to its citizens (private citizens are those who has not insured since they have no money to pay monthly insurance premiums) (Chua, 2006).

The financing of the healthcare system revolves around two streams of money; the first form of financing is the collection financial resources for healthcare (money going to the hospitals from the outside), and the reimbursement of the medical service providers for medical care (money going out) (Chua, 2006).

In the United States of America, the government and the private insurance companies are the ones undertake the responsibility to share these two functions and are known as payers. In a way, one can perceive united sates as a multiplier system in which the government, private insurance and the citizens (without medical insurance) are supposed to pay for the health care ...