Health_Care_Spending

Health Care Spending Paper Rhonda Ellis-Thomas University of Phoenix HCS/440 Kevin Branyan November 29, 2010 Health Care Spending Paper Introduction No subject has gotten more recognition in the health care clash than cost. The question that needs to be answered is if the nation is spending too much or not enough. The writer believes that the area under discussion is easier to deliberate than describe. The purpose of this paper is to provide the level of current national health care expenditures, explain whether or not the spending is too much or not enough, and explain where the nation should add or cut and why and how the public’s health care needs are paid for. National Health Care Expenditure The predictability of health care cost has recognized for years by citizens, businesses, and government agencies such as the Centers for Medicare and Medicaid Services (CMS), the Bureau of Labor Statistics, U.S. Census Bureau, and the National Center for Health Statistics, to name a few. The level of health care spending is little to nothing among the citizens and businesses. The number of uninsured is enormous and most of the citizens that are insured are covered by Medicare and Medicaid. The cost of health care is ridiculously high and rising and has for decades. According to the Centers for Medicare and Medicaid Services (CMS), the U.S. had been projected to spend over $2.5 trillion on health care in 2009, or $8,160 per U.S. resident. Health spending in 2009 had been projected to account for 17.6% of GDP. In 1970, U.S. health care spending had been about $75 billion, or $356 per resident, and accounted for 7.2% of GDP. Health care spending has risen about 2.4 percentage points faster than GDP since 1970. CMS projects that by 2018, health care spending will be over $4.3 trillion or $13,100 per resident, and account for 20.3% of GDP.  (The Henry J. Kaiser Family Foundation, 2010) Is Spending Too Much or Not Enough Is spending too much or not enough' This question can be answered in different ways, because everyone’s perspective of health care spending is unique. The writer believes that health care cost is too much. The writer’s experience with health care cost over the years has a spiraling rollercoaster going from excellent to poor. The U.S. Army had an excellent health care plan with no out-of-pocket costs. After leaving the military and gaining employment at Prudential Insurance Company, out-of-pocket cost had been minimal and the experience of receiving health care had made life pleasant. With today’s insurance coverage at Kindred Hospital is not so appealing because the cost of health insurance being a third of the writer’s wages per month. Therefore, the writer chooses not to carry it. That makes three more uninsured citizens in the United States. The writer makes too much to be eligible for Medicaid and not enough for insurance through the employer. Medical services require a substantial amount of out-of-pocket cost because of no health insurance. The writer also believes that there are several people in the nation in the same category as the writer. People have stated that health care is not affordable and for that reason, more people are dying from preventable infections and diseases. Healthcare spending in the United States continues to rise at a rapid rate despite numerous efforts to constrain it. Spending reached $2.1 trillion in 2006, equivalent to 16.0 % of the U.S gross domestic product (GDP) (or one of every six dollars in the economy). It is expected to increase to almost $4.1 trillion or 19.6 % of GDP (or one in every five dollars in the economy) by 2012. Thus, the level of spending is high and projected rates of increase portend much higher spending in future. These spending levels are commonly presented as being “too much” and must, therefore, be reduced. (Mirvis, 2009). Where Should the Nation Add or Cut Should the nation add or cut health care cost' Health care should be cut so that everyone can afford it. Health care should not be a privilege, it should be a right. If health care reduces costs, the number of uninsured would drop tremendously. Also mortality and morbidity will decrease as a result of affordable health care for everyone because more people will go to be seen for wellness checkups and routine visits and not so many unnecessary visits to the emergency rooms. Cuts in health care costs need to be addressed in every corner of the health care industry and changes in the way health care delivers; it would make a huge difference, too. Physicians’ charges should be reasonable and steady and not all over the place to ensure the salaries promises when graduation. Prescription drug prices should be cut to the cost of generic brand price. Kickbacks and price discrimination needs to be stopped immediately, because these actions are uncalled for and inappropriate to policy and non-policy holders alike. Hospitals need to cut out the cream skimming which is dishonest to the patients who are using service for the profit of the organization. How the Public’s Health Care Needs Are Paid Health care needs are paid for by various insurance companies and government agencies. In the year 2009, it projects that the payment of public health care needs are spread thin for several services such as 3 % for public health, 2 % for research, 4 % for buildings and equipment, 31 % for hospitals, 21 % for physicians, 10 % for other professional services, 5 % for nursing homes, home health is 3 %, prescription drugs is 10 %, other medical products is 3 %, and government and private administration is 7 % (Smith, n.d.). Distribution of payments are made by Medicare, Medicaid, private insurance companies like Blue Cross Blue Shield, Aetna, Humana, Cigna, to name a few, and some people who pay out-of-pocket for services. Certainly, all of the payers that are involved in the percentages listed above have not been named due to the large quantity, but it should be clear from the entities that were mentioned how the public’s health care need are paid for. Conclusion Our great nation is spending a fortune on health care and it is continuing to rise each year. Something has to be done to revamp spending so all Americans can receive quality health care services. Health care should be based on the need rather than the ability to pay. No one should have the title of uninsured of health care. Any individual who votes against the health reform cannot be receiving any sleep at night. What if the shoes were on the other feet' Would the same expression of feelings be against the reform' This is a national ignominy and it is not the American way. References Mirvis, D. M. (2009, January). Health care spending: How much is "too much"' high cost vs. low value. Tennessee Medicine, 102(1), 27-8. Smith, H. (n.d.). Examiner.com. Retrieved from http://www.examiner.com/health-care-in- washington-dc/getting-more-bang-for-the-same-health-care-buck-a-model-for-health- reform The Henry J. Kaiser Family Foundation. (2010). Kaiser family foundation. Retrieved from http://www.kff.org/insurance/upload/7692_02.pdf