Health Care System in America Essay

Health Care System in America Essay

The most fundamental and essential health-care strategies frequently cover physician care, surgery, as well as hospitalization. The employer healthcare provision is believed to have begun earlier in the twentieth century. However, it came into existence after the Second World War. Recently, most, if not all Companies and businesses have embraced some healthcare systems for their employees. Below are reasons why American companies were initially motivated to offer this kind of service to their employees: First is the fact that there was the absence of government health care provisions. The prevailing market forces at the time forced employers to take the central role of healthcare insurance providers. One of the conditions included the tax code substantial price benefit accorded to the company (Litman, 1991, pg 310). Second was to overcome any adverse selection situation of health insurance provision in the individual market. Adverse selection is a situation whereby the healthy have the strategic advantage and thus chooses a managed care system while the less healthy choose other less efficient healthcare options. Eradicating this situation was enabled by employer health insurance cover, which had the ability to pool individuals into insurance groups (Median, 2008, pg 140).

Third was the employers desire to discourage labor strikes in some companies. This situation involved the profitable companies such as the rail and steel industries, where workers were vulnerable to major accidents and injuries. The workers had a great “mistrust” of the government health insurance policies towards their working conditions and challenges. The employers thought that the best option to get rid of the existing tension was by providing their employees with health cover benefits. The fourth was to increase businesses cost effectiveness. The companies would contract a deal with health maintenance organizations, which included professional practitioners who would provide detailed health services to the employees at a fixed price rate. The employees were limited to only specific medical facilities and professionals as approved by the company. Some businesses also used this healthcare system for testing of specific ailments such as blood cholesterol and diabetes. However, the employees were limited to the range of services and doctors accorded to them. Additionally, there also existed another organization known as the Preferred Provider Organization that allowed employees to choose any doctor, as well as any medical facility of their preference (Employee Benefits, 2000).

Lastly was that some companies provided the health insurance as a motivation to the employees, as well as a form of protection that helped to avoid loss of labor, in case of sicknesses or injuries. The workers were accounted for by this action during the production process.

The choice of businesses offering health care provisions for their employees in America has had a great impact on healthcare both positively and negatively in today’s world as discussed below;

First is the entry of the large health insurance industry. The focus on health insurance has impacted America, through the development and existence of the wide variety of health insurance organizations that exist today (Litman, 1991, pg 301).

Second is the lower prescription drug cost that benefits that health insurance members and is made possible by the fact that the insurance companies try to reward the loyalty of their members by reducing the drug purchasing cost.

The third influence on today’s health care is the coverage of more preventive care today than initially. For example, people who use the health insurance have been granted check up visits at no cost during certain periods of the year. Members are accorded with extra services to ensure that they get the best healthcare possible. Preventive care may include check-up for diabetes, cholesterol, and high blood pressure.

The fourth action involves the introduction of the new Medicare law; Patient Protection and Affordable Care Act that has ensured that one gets more services from the Medicare Company. The new law has been empowered to ensure that one’s earned benefits are well protected. The Act also enables the low and middle-income earners to be able to buy health insurance, through cost sharing and premium provisions.

Fifth is the disruption of individual continuity of care when changing jobs as well as switching from different healthcare providers. The confirmation of personal details, as well as other credentials, is one of the causes of the disruptions. Consequently, this may lead to the delay in treatment as well as employee suffering as he or she waits to be treated. Additionally, due to different varieties of health covers one may suffer a “start-up” cost of changing from one insurance cover to another (America’s Health Insurance Plans, 2015). Lastly, America has a high possibility of increased health costs that may occur if a situation leads to the rise in premiums, on top of the already existing unsustainable and increasing medical expenses.

Lastly, America has a high possibility of increased health costs that may occur if a situation leads to the rise in premiums, on top of the already existing unsustainable and increasing medical expenses.

References

  • Litman, T. J., & Robins, L. S. (1991). Health politics and policy. Albany, N.Y: Delmar Publishers Madrian (2008).The U.S. Health Care System and Labor Markets.
  • Toland (2014).How did America end up with this health care system?
  • Kleiman (2000).Employee benefits.
  • AHIP Coverage (2015).America’s Health Insurance Plans.

Also read Starting an Essay.