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Principles of Finance for Health Care Reforms - Essay Example

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The paper "Principles of Finance for Health Care Reforms" states that generally speaking, individuals, with such reforms, would lose the employer-sponsored insurance they enjoy. This would mean that the health-insurance premiums of families will be affected. …
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Principles of Finance for Health Care Reforms
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Principles of Finance for Health Care Reforms Principles of Finance for Health Care Reforms Today, at the heart of effective health care reforms, lies some of the basic principles of public financing. They are sometimes considered as minor issues that can be covered in situations or circumstances that tend to become a bother. However, what the principals in charge of public financing do not seem to understand is that, the world and the people in it revolve around effective health care. So, if they treat it as any common occurrence, they are doing an immense disservice to the people they are meant to serve (Dilulio & Richard, 1994, p. 76). Therefore, the principals in charge of public finance in some of the public sectors must consider the majority of people in need of health care services. This paper will review some of the current issues facing the health care sector. Also, it will look at some of the policies being implemented with their impact on public finance. Health care cover is needed the world over to ensure that there is access to quality health care. Health care cover requires that all members of a region get access to medical facilities. This implies that there is the provision of medical services to people provided they come from that region. In many developed countries, today, it is possible to find that every citizen receives health care benefits without too much money required. The United States is among the developed countries that does not have this for its citizens (Gunnar, 2007, p. 45). This has often been a subject of debate for the nation, and its delegates. There are principles that govern the running of finance when it comes to the health care reform. One of these principles is medical coverage for all the citizens in a country to ensure the improved state of health of all people. This means that, for all government servants, it is vital to have medical cover to ensure that they are taken care of when they fall sick, or are in need of medical care (Gunnar, 2007, p. 56). It helps individuals whenever a situation arises that may need urgent medical attention. Another principle is the provision of medical health care to all citizens without the presence of any financial barriers. This is for citizens within the borders of a country. This principle ensures that citizens in a country enjoy affordable medical care for their medical problems. To make sure that they get this without bias or discrimination, there have been forums that address the plight of minority groups in countries. For example, in the United States, there are forums that seek to speak on the dilemma of the African-American communities, and the Native Americans (Gunnar, 2007, p. 60). Moreover, other principles seek to cater for the ethical issues present. There is call for all medical practitioners, and society to respect the ethical standards required in providing quality health care to everyone (Gunnar, 2007, p. 64). Personal health responsibility is addressed in this case. This is to prevent any financial ruin in cases that may easily be avoided. This is the cause of many cases that prevent treatment of people around the world who might have medical cover, but cannot get treatment for some of the medical problems they may encounter. Other principles include the issue of getting, sharing, and saving funds to cater for medical cover. This means that funds should be made available for public health, with other medical services. Individuals can get funds to access other medical services such as insurance from these public funds. There must also be funds for additional research (Gunnar, 2007, p. 70). This is for the community to be made mindful of the progress in the prevention, cure, or threat of any medical emergency that arises. The Centre for Disease Control (CDC), in the U.S., is an example of such facility that ensures people are safe from any medical danger. Current issues surrounding the Health care reform In modern times, it has become frighteningly easy to see many people suffering due to the present health care systems. In the United States, for instance, there is the lack of universal health care. There is a difference between universal health care and health care reform. This difference exists in the form of coverage. Many Americans want it to be a basic right to have medical cover as they are residents of the U.S. This, they see as a way to prove that they, as a country have grown, and developed (Lloyd-Sherlock, 2000, p. 67). They, therefore, do not see why they have to struggle to access some of the things that might be termed as basic. In many countries, people understand that the situation of the health care system is poor. The developing nations can attest to this situation, since they depend on the more developed nations for help when it comes to medical care. The system does not work effectively or efficiently enough to help their citizens who live below the poverty line. This usually plunges the country’s economy into debt since they find it difficult to pay, in the long run. Decisions made on behalf of the citizens in a country usually have a ripple effect that comes down to the employed servants often paid a minimum wage (Quaye, 2010, p. 55). They have to bear the full brunt of these decisions, and yet, do not get to see the positive effect of these decisions. The sector faces a shortage of the workforce and professional labour force. In many nations, it is not surprising to find the number of practicing physicians is frighteningly low. This proves to be an immense problem for the residents or people in that region. They end up looking for alternative methods to cater for their medical needs. They tend to look for people not qualified to handle medical cases, making these problems never ending for everyone (Lloyd-Sherlock, 2000, p. 70). Those who happen to practice in these areas are aging. It is hard for them to cater to the needs of people with the efficiency they once had in their prime years. Workforce shifts involve professional, certified physicians moving to other countries to work. They might do this due to better conditions, and a serene environment from which they can practice. This proves a challenge to the countries from which they are from since they are left without the availability of professional physicians. These workforce shifts are present the world over. This is despite the fact that, people back home need more medical care than where these physicians might go to better themselves. To prevent this from happening, governments are willing to spend more money on their medical practitioners forgetting they need to pay attention to more folks in the same country (Quaye, 2010, p. 60). A stressed health care delivery system that is present in many countries is another issue facing health care reform. Not many medical centres in developing countries can handle the financial constraint that comes with having these establishments. Many at times, they suffer from weighty financial stress. That often pushes them to look for aid from the more established economies around the world, which helps in the short run. In the long run, the financial strain becomes unbearable (Lloyd-Sherlock, 2000, p. 73). Current Implementation of Policies and Their Impact on Public Finance Countries that are considered developed are keen to ensure that their citizens get the best health care available. This is by means of developing privatization, and insurance programs that may help speed up this process. By implementing such policies, the citizens are better placed to choose from a variety of options (Battistella, 2010, p. 84). This can range from their primary care givers to, their medical insurance agencies. As seen earlier, some countries offer universal health care. Canada, a well-developed country, offers people of that region the benefit of having coverage that ensures their medical needs are taken care of at all times. Emergency services are offered as it is a policy in some regions (Battistella, 2010, p. 91). The Czech Republic has made it a law that every citizen should have the right to emergency medical service in the event they need it, regardless of their social standing. All these policies do have an impact on the public financial standing of a state. It is likely that the more people a state has to take care of in terms of medical cover, the more funds it is likely to use. This means that taxation in a country will be used as one source of revenue to reimburse the funds spent. Individuals will be taxed more on the goods and services in the country (Battistella, 2010, p. 95). This is to ensure the nation does not plunge into an economic depression. The implementation of such policies requires the use of public funds in more ways than one. Educating masses on the positive effects of an exceptional health care system is bound to use some of the taxpayers’ funds. These funds, at some point in time, will have to go back to the government’s docket. This goes back to the point made earlier on high taxation (Battistella, 2010, p. 98). Governments have the choice of making life easier for all of their citizens by implementing policies that are out to benefit them, in the long run. In order to do this, they need to involve their citizens in forums that address their plight. New policy discussions surrounding health care reform Among the policies in government dockets, in many countries, is the issue of health care spending. This issue is seen as a particularly vital one. This is because most people believe that most of taxpayers’ money is spent, but does not achieve anything that may be of significance to the people (Chapman, 1994, p. 60). This prompts them to think that there is mismanagement of funds in the government offices. This is because many people are still grappling with the fact that, there is a poor and ineffective health care system. The discussions taking place need to focus on such issues as overspending. This is to ensure the little that is present gets to everybody, and is effective in achieving the desired results. Another discussion that should take centre stage is the issue of societal trade-offs. The vast trade-offs include society, and liberty. People the world over are getting health insurance that is regulated. What they do not seem to understand is that, they are getting little or no liberty to express their wishes when it comes to health care (Chapman, 1994, p. 69). This is because they are pushed into a corner by the higher taxation rates, and insurance mandates that come with health care benefits. With regards to public finance, these issues need addressing to prevent overspending in the health care sector. This may be a step in the right direction for all those involved with this sector. Discussions as to the best cost control alternatives will ensure that, in the near future, people do not suffer from poor health care decisions. These cost control approaches may best suit countries that are battling with low economies. To work in their favour, they must understand the dynamics of such alternatives. Also, what these alternatives might mean to the people they are working to help (Chapman, 1994, p. 75). There is a manner in which organizing risk management could work in favour of health care reform, and public finance. This is by identifying the challenges that face the sector, and planning of mechanisms to better the future of this ever growing sector. Health care reform in some parts of the world In recent times, there have been reforms advocated for by world leaders, for example Obama. This is in the United States where there are calls for there to be certain reforms in the health care sector. Obamacare is what is referred to these new reforms. However, many people believe that these reforms give the government a lot of control over the personal health care of individuals. Such an act was meant to reduce the costs of health care in the country, offer coverage to children, and that parents should give their children medical cover up to a certain age. These reforms have people up in arms since they do not cater for the vast majority of people in the U.S. For businesses with less than fifty employees, these reforms are not applicable (Johnson, 2012, p. 1). The cons that come with such reforms include a rise in health care costs. This presents a problem to the federal government that needs to consider the general population of the Americans. Another con that may arise is the number of people who might pay penalties for not having insurance cover. There are pros that are associated with this Obamacare involves some aspects of positivity. For example, giving those who do not afford insurance will have the federal government pay to have them in Medicaid. Moreover, those who do not qualify for the above are eligible to receive tax credits (Johnson, 2012, p. 1). Evaluating the costs of the health care reforms Recent CBO financial analysis on the cost of the health care reforms was shown to the public. The analysis indicates that billions of dollars amounting to penalties will be paid by the American population. The 54 billion dollars will come as a result of failure to purchase health insurance by the population (Johnson, 2012, p. 1). The raising of taxes will be done to more than a million American people. This might amount to almost a quarter million in taxes that will be garnered annually. Businesses that are responsible for manufacturing medical devices will have a hard time hiring people. This is with the high taxes that are set up for them to continue business legitimately. The lack of employment opportunities will cause a drop in the economy. The loss of employer-sponsored health care insurance will encourage companies to pay penalties. This is so that their employees can purchase insurance from other private organizations. Smaller businesses will then find it easier to plan their organizations through programs run by the state. The health care system is suffering since it is spending more. This is as compared to the reports created that state these reforms are saving the state’s capital. There is additional expenditure of money in the health care sector. This is in the form of 111 billion dollars of taxpayers’ money (Johnson, 2012, p. 1). The general impact on the government, the businesses, and individuals For individuals, with such reforms, they would lose the employer-sponsored insurance they enjoy. This would mean that the health-insurance premiums of families will be affected . The families will have to increase the amount of money in order to satisfy the requirements. Secondly, such reforms increase the amount of money the government is willing to spend. This presents a problem to the individuals in that state. This is because the rate of taxation will have to increase (Johnson, 2012, p. 1). For businesses, there is the ripple effect that comes down from the employees, to their working performance. Individuals are motivated to work in environments that offer benefits. This is a negative effect as the economy will also be affected in the long run (Johnson, 2012, p. 1). after many people find it hard to be more effective in the said businesses. In conclusion, to ensure that people benefit from the different policies in place, there is the need to understand the dynamics of the health care sector. Getting to understand these dynamics can help people prepare well enough for the difficulties that come with this public sector. Understanding the issues facing it and the ways, in which to prevent its fall can raise awareness as to what, best suits the present situation (Chapman, 1994, p. 78). These policies could determine the difference that exists between life and death for a significant number of people. It is, therefore, wise for all those involved to give it their utmost attention in order to find an amicable solution. References Battistella, R. M. (2010). Health care turning point: Why single payer won’t work. Cambridge: Cambridge University Press. Chapman, A. R. (1994). Health care reform: A human rights approach. London: Macmillan. Dilulio, J. J., & Richard, R. N. (1994). Making health reform work: The view from the States. New York: Bantam Books. Gunnar, R. A. (2007). Health care politics, policy, and services: A social justice analysis. Oxford: Oxford University Press. Johnson, R. (2012). Obamacare’s costs are soaring. The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052702304724404577289363234579868.html Lloyd-Sherlock, P. (2000). Health care reform and poverty in Latin America. New Haven: Yale University Press. Quaye, R. (2010). Balancing public and private health care systems: The sub-Saharan, African experience. London: Sage Publishers. Read More
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