Medical Care in the United States Paper ECO/ 372 Principles of Macroeconomics 26 September 2012 Mr. James Geffert The Medical Care in the United States Paper written by Team C will identify the background, policy, and impact of paid medical care. The comparison of Great Britain and Canada, the public health care budget is itself a ceiling; unlike the United States. The Medicare Payroll tax on investment income taking effect in 2012 will be expanded to include unearned income. The new healthcare bill is another attempt at making healthcare work for the citizens of the United States.
The Senate worked for months over the bill, and came to a conclusion of what the bill will include. The Senate Health Bill will provide coverage for 94% of Americans with medical insurance. The health care bill is planned decrease the federal deficit by $127 billion in ten years, and reduces the deficit by $777 billion in twenty years. In the United States before the 1920’s most people were treated in their home for illnesses. Only a few companies had offered health insurance to employees; most people paid out of their pocket. The doctors did not have enormous amount of information about diseases and their treatments.
The advanced technology and knowledge of the diseases became necessary to bring patients into hospitals; caring for them properly. This medical cost of care was high and people could not afford it! The Great Depression made it worse for medical care in America. One of the first health care programs to help people with medical expenses came from Baylor hospitals in Dallas; converted to Blue Cross. The cost of care continued to rise due to medicine, science, and hospitals making advances in their ability to cure the sick. More people were turning to hospitals and doctors for care.
The Blue Shield was and insurance covering services only doctors performed. This insurance started growing rapidly in the late 1930’s as a way for doctors to ensure they received compensation for work performed. The Blue Cross and Blue Shield were having more insurers began entering the healthcare market once they saw the success. During World War II due to the shortage in labor, more employers began to offer health insurance as a benefit. This benefit became standard for employers and the government encourages employer to do so through tax incentives.
The tax incentives were operating most all other countries and starting national health care systems. The government pays for and regulates medical care services for its people nationwide. Currently no wealthy nation fails to provide a comprehensive health care system for its people that are free or inexpensive. The United States have roughly 50 million Americans, 16 percent of the population; no health insurance. The majority of the population that fall into this category is the relatively poor and most range in age from eighteen to thirty-four.
The Studies have shown this number has increased dramatically since the 1970’s. Research by the Kaiser Family Foundation finds “those without health insurance die younger or work less due to chronic health conditions, and face persistent personal financial problems brought on by illnesses;” published by Jeff Madrick in 2012. He also found that a Harvard Medical School study found some 45,000 deaths a year are associated with lack of health insurance. The static medical information found it difficult to live a normal healthy life without disease and illness; without access to proper medical coverage.
For many people are forced to use a public hospital for treatment as a final recourse to a health issue usually do so too late. The costs for a neglected injury or a disease are astronomically high. The stats are 17 percent of the Gross Domestic Product for healthcare is being paid by one out of every six American. This number is much higher than any other wealthy nation by far and our health care system is not measurably better and often considerably worse. The health care reform is basically two Acts in which President Obama signed into law in 2010.
The two acts are Patient Protection and Affordable Care Act, and the Health Care and Education Reconciliation Act of 2010. The laws have the potential to ensure many Americans that cannot afford health care may be eligible for Medicaid benefits. The laws also ensured that individuals with pre-existing medical conditions have a better opportunity to obtain medical insurance thru their employer. Corporations will receive incentives for increasing their eligibility requirements on pre-existing medical conditions. The acts will be funded by increasing taxes on individuals that have an annual income of over $200,000.
The government will tax individuals that have worked hard to ensure no financial help from the government. The government will ensure individuals income is enough to pay for their own medical care. These acts also state any individual does not have medical insurance with their employer will be required to obtain an approved private party insurance policy. The individual without coverage will be penalized. The only individuals will be exempt from this act are those individuals that are members in a religious sect and are exempt by the Internal Revenue Service, or are in a financial hardship and have applied to be exempt.
These acts are expected to take full effect by 2014. Then all individuals will be required to comply with the rules and regulation of these acts by that timeframe or pay penalties. There are many arguments over the Obama’s administration proposal for health care reform. Republicans and the Democrats are always disagreeing over each other’s ideas. The Obama administration suggest that there a specific areas that need to be addressed a dealt with when it comes to medical care. A few areas are cost, prevention and treatment of chronic conditions, and also a shortage of doctors and nurses.
There is also many other key points that was addressed in the medical reform proposal. The specific areas that were mentioned needed to be addressed such as cost the administration felt the cost of insurance should be affordable so everyone is able to have medical insurance for themselves as well as their whole family. The shortages of doctors and nurses the Obama administration believes our country is in need of more doctors or nurses to provide care to all people in the entire country and as well as the doctors and nurses to accept all types of insurances.
Prevention and treatment of chronic conditions were not always covered by insurance due to chronic pain because that is normally a preexisting injury. If an individual had a preexisting injury their insurance had the option to deny coverage to the patient. The forum must ensure all of the areas needed to be addressed and also approved so the individuals are affected by these specified areas. Thanks to the Obama administration individuals can afford their medical insurance, can receive treatment for their chronic pains, and more doctors and nurses are available.
In July 2010 Obama assigned Donald M. Berwick as administrator for Medicare and Medicaid. His idea during the time for medical care was no needless deaths, redistributing healthcare to all who are sick and tend to those who are less fortunate. Healthcare and medical care is very important. The working men and women with families, who are not in the middle class, require affordable healthcare. According to the Heritage Foundation, “President Obama care puts the health care system on the wrong track and will expand the role of the federal government in every component of Americans’ health care. President Obama care is the ongoing health care reform. The health care reform guarantees U. S. citizens that may not have insurance or not provided health insurance through their employer. It also requires U. S. residents to have health insurance whether through their employers or private separate insurance companies. This change is dramatic, especially to those who do not have healthcare and do not have to pay it. It is said that all U. S. citizens are mandated to have insurance and pay insurance even if they are not using it.
Even businesses will be mandated to provide affordable insurance whether it is a large company or small business. Such proceedings are so important to American citizens because it is such a big transition, for any individual, in any circumstance. In England and Canada the health system is financed by general taxation revenue, including a small statutory insurance levy, and private payments. The Medicare provides access to subsidized medical services, subsidized pharmaceuticals, and free hospital treatment as a public patient. President Obama suggested to Congress minor adjustments to Medicare, he meant it.
His proposed plan to Medicare and Medicaid will clean up the health care system and save $321 billion over 10 years. The plan didn’t identify any proposals to fundamentally tackle Medicare’s long-term structural problems. President Obama’s budget proposal implies Medicare cost reduction has been implemented in a previous year’s health care law. The plan seems to save now and pay in the later years. Congress will play a big part in future planning estimating seniors will pay twice a share of their health care costs out of pocket by 2030. REFERENCES:
Obama Deficit Plan May Rely on Inflated Health Care Savings, National Journal; 9/24/2011, p7-7, 1p, Sanger-Katz, Margot New York Review of Books, Jeff Madrick, 2012; retrieved 09/22/2012; http://www. nybooks. com/articles/archives/2012/jun/21/obama-and-health-care-straight-story/ http://www. merriam-webster. com The Heritage Foundation. (2012). Retrieved from http://www. heritage. org/issues/health- care/obamacare Healthcare Czar in Obamacare. (2010, June). Patient Protection and Affordable Care Act , (), 17-18. Retrieved from http://www. cchfreedom. org/pr/ObamaCareCzar. pdf