Healthcare in the US - Essay Example

HEALTHCARE INSURANCE Healthcare insurance is an important issue in the United s and it has turned into a critical one with 45.8 million uninsured people in the country. The steady rise in number of people under the age of 65 without health insurance has called for immediate action. The country that spends so heavily on healthcare has strangely been unable to provide adequate health coverage to a significant percentage of the population. With healthcare insurance premiums rising consistently, not everyone is able to afford employer sponsored insurance. This is a serious issue for a country where elderly population is consistently increasing leading to a serious healthcare crisis. The prices of drugs have gone up alarmingly causing a major shift in source of supply. While few years ago most people would purchase their prescriptions drugs from within the United States, a significant portion is now purchasing them across the border. This is putting pharmaceutical industry at a risk too while putting additional strain on healthcare industry in general. But the drugs being prescribed are available at a very high price in the United States while the same drugs are much cheaper in Canada. People without adequate health insurance are required to pay enormously on prescription drugs. This is a serious concern for tens of hundreds of people in the United States. The fact that is most surprising and yet disturbing is that United States spends heavily on healthcare. In 2003, US invested 15.3 percent of GDP in healthcare sector. This expenditure is likely to increase to 18.7 in next few years. The US spends more than any other western industrialized country on healthcare and yet many of its people are totally dissatisfied with the system. There is an urgent need to make the system more efficient, less expensive and to provide adequate coverage where it is needed the most. Drugs must also be subsidized in order to make it easier for those without insurance to purchase them. The pharmaceutical industry claims that it spends a large amount on research and development and the quality of their drugs is what causes additional increase in prices. However this claim is not accepted by the public, which is disappointed with a system that has otherwise been ranked the best in the world. US healthcare system is subject to intense debate. On the one hand are those who feel this system is the best in the world, while on the other extreme are those who are completely disenchanted with healthcare laws, provisions, coverage and facilities. Healthcare expenses in the US are paid by individuals and/or by insurance providers. These insurance providers fall into carious categories including Medicaid, Medicare, private insurance and employer sponsored coverage. According to a survey and research, it was found that Americans spend a hefty amount on healthcare every year out of which private insurance provides the widest coverage. It was reported that in 2004, private insurance covered 42.8 percent of the total expenses; out of pocket payments were estimated at 19 percent while Medicare and Medicaid covered 10.9 and 10.6 percent respectively. (Machlin, Carper, 2006) Despite some important sources of funding available, United States still fails to provide healthcare coverage to every citizen. It is said that despite such heavy spending, US is sadly the only developed country with the exception of South Africa that doesn't provide healthcare to all its citizens. At the center of this issue lies the rather confusing and inefficient insurance system, which leaves many people, puzzled, to say the least. We have Medicare, Medicaid, divided into some categories and while you may qualify for one, you may not for the other. Similarly there is military, veteran and private employment insurance. Sadly however these sources of funding are not enough. Many people are still uninsured and it has been reported that people with inadequate healthcare insurance or no insurance are likely to die younger and live an unhealthy life compared to those with health insurance. It is believed that a single payer system may be the answer to many of our healthcare insurance problems. With a clear, transparent and single source of funding, government will have a better picture of how much insurance is being paid, who is being covered and what percentage is still not covered. With a multi-payer system, agencies might not be fully aware of the extent on uninsured population in the country. This single payer system is working quite effectively in Canada and in 1991 reports were published that indicated that a similar system might be more economically feasible for the US due to reduction in administrative costs. It has also been said that single payer system would not completely eliminate other sources because that source would provide the most basic coverage to all citizens. The rest would be covered through private insurance. But the advantage here is that at least every single person will have some healthcare insurance, which would reduce the burden of making out of the pocket payments. "In 1970, U.S. and Canadian mortality rates calculated along income lines were virtually identical. But 1970 also marked the introduction of Medicare in Canada -- universal, single-payer coverage. The simple explanation for how Canadians have all become equally healthy, regardless of income, most likely lies in the fact that they have a publicly funded, single-payer health system and the control group, the United States, does not." (Dressel, 2006) Bernasek (2007) reports that United States is currently paying $6,102 approx per person on healthcare each year- a rate that is much higher than other industrialized nations. It is also significantly higher than Canada where each year $3,165 approx is spent per person on healthcare. Single payer system is the answer to this alarming rise in cost of healthcare in the US. Examples of other countries indicate that a single uniform source of funding can cover every citizen while reducing government expenditure on the whole. The large amount of paperwork required in the hospitals and other healthcare facilities can to the burden of exorbitant administrative costs. This kind of paperwork was virtually absent in other countries. The author further explains that cost of this kind of unnecessary paperwork accounts for 31 percent of healthcare-related administrative costs and can be eliminated with the help of a single payer system and more effective way of maintaining records. Healthcare in the US is facing serious challenges. The rising costs of insurance, inadequate coverage, expensive drugs are all placing undue burden on citizens, many of whom have no health insurance at all. For this reason, government must consider the recommendations made by various sources and should check the feasibility of a program like single payer system. Concerted effort and sincere action can result in dramatic changes, which can obviously no longer be avoided. References Holly Dressel Has Canada Got the Cure' Fall 2006. http://www.yesmagazine.org/article.asp'ID=1503 Anna Bernasek Single-payer insurance could help solve U.S. health care crisis January 2, 2007 http://www.iht.com/articles/2007/01/02/business/health.php Steven R. Machlin, MS and Kelly Carper, Med. National Health Care Expenses in the U.S. Civilian Non-institutionalized Population, 2004 Medical Expenditure Panel Survey November 2006 Read More