The Economics of End-Stage Renal Disease



The Economics of End-Stage Renal Disease

Introduction

Health is the basic necessity of every individual and the provision of quality health care services is their utmost right. United States is the only nation that is spending the most enormous amount of money on its health care system. Yet the issues related to the cost of the programs run by the government health care agencies like Medicare and Medicaid have become difficult to handle in terms of their costs. The financial budget has increased the government's present limits.

Discussion

Complexities of American Health Care System

The financing of the health care is an essential aspect that affects the overall health care system of United States. The financing includes the payments by the public, the governmental agencies and the donation bodies. The system is not as easy as it seems and the rising costs of the health care services are an alarming problem for United States. The rising costs of the health care services have made it harder for many6 individuals to get access of the quality health care services. This is perhaps the reason behind the elevation of the disease graph in the states (Kovner, Knickman, 2011). Since the Obama government, there have been a number of changes that occurred in the health care system of United States (Reinhardt, 2010). President Obama's vision of health care reform considered the uncontrolled financial budgets as the most distressing problems. There are several steps taken to increase the coverage for insurance of the individuals of United States.

Major Reimbursement Mechanisms

The major reimbursement mechanisms refer to the governmental bodies and some private sectors. The insurance programs can be considered as the compensatory means in this regard. This Health insurance plays a vital role in improving the public health. The insurance programs are divided into two categories

Public insurance programs

Private insurance programs

Public and private insurance programs

The public and private insurance companies have taken tremendous steps in increasing the coverage profile. The public insurance programs are launched by the government itself. The two most well known programs in this regard are the Medicare and Medicaid. Medicare program supports the financially unstable and handicapped or disabled individuals while Medicaid supports those individuals who are financially not strong and can not afford basic health care services on their own (Kovner, Knickman, 2011). The Children Health insurance program (CHIP) is also a public insurance program to support the children that are not entitled to use Medicaid. There are many other governmental public insurance programs that support the financially unstable families, public employees and even animals.The private insurance has been declining rapidly in the past few decades, after the formation of Medicare and Medicaid

Issues in financing the hospitals

The major problem with the financing programs is that the amount spend by these agencies is enormously exceeding the budget that has been estimated by the government. The government is providing the hospitals with lesser amount as compared to the actual expenditure on the insured and uninsured individuals. The insurers and the Medicare provide the hospitals ...