Evolution of Healthcare - Report Example

Health insurance is a commodity everybody needs to protect themselves against unforeseen illnesses. Healthcare costs are extremely expensive and mostpeople can not afford to pay for treatments on a cash basis. Health insurance is the most common solution utilized by the average person to cover the cost of their medical needs. The concept has been around for over one hundred years in the United States. The first health insurance products began to appear during the Civil War (1861-1865). These plans offered coverage against accidents related to travel by rail or steamboat (Lieberson, 2007). The first illness policies turn up before the end of the century. Bigger breakthroughs on comprehensive plans that covered all the basic health care needs of the insured did not turn up until 1929. In this year a teacher association in Texas contracted Baylor Hospital for room, board, and medical services for a monthly fee (Lieberson, 2007). This business transaction is very close to the model we have today in which customers pay a monthly recurring fee for their insurance plan. The Baylor Hospital contract created a model which the insurance companies viewed as an opportunity. In the next two decades there was boom in insurance health coverage sales and the insurance healthcare industry was formally created. Some of the biggest institutional clients that bought group coverage were the workers unions, which at the time were very powerful. Another big client for the insurance companies was the government. Eventually the government created their own insurance system to take on the elderly which was called Medicare/Aid. Health insurance is a way for people to protect themselves and their families against injuries or health related issues. It allows people to separate a fixed amount of money for a monthly payment to the insurance company, giving the person the mental relieve of knowing that the investment will cover most potential medical expenses. Health insurance coverage includes hospitalization, regular visits to your doctor, specialized medical services, dental needs, medicine, physical therapy, maternity, ambulance costs, mental illnesses among many others. Health insurance serves the macro economical purpose of relieving the governmental responsibility of the cost related with keeping its population healthy. The population segments that is in higher need of medical services is the elderly. Our bodies break down over time and after becoming senior citizens preexisting conditions require more maintenance and medical monitoring. The government visualized this need in the 1960’s and created a universal healthcare insurance system for the elderly and disabled called Medicare/Aid. Every United States citizens that works pays 1.45% of its income towards this system which is matched 1:1 by the company which the person is working for. The rest of the population that is not in extreme economic need depends on the acquisition of private medical insurance for their medical needs. The healthcare insurance industry is going through a very discouraging trend for the customers of raising prices due to the elevated costs of health care. In 2006 health care insurance premiums to cover a family costs about $11,481 a year of which the worker paid 26% of the cost, while the employer paid the remaining 74% (Insurance Industry Trends, 2007). There are several factors that have raised health cost. Some of these factors are overall population obesity, endangering conduct such as smoking, malpractice insurance and high levels of yearly inflation on prescription drugs. Obesity is a health problem that is widespread throughout all the states in the USA. Statistics demonstrate that 92% of the 50 states have obesity rates above 20% among their populations (CDC, 2007). Obesity leads to many health problems such as coronary heart disease, hypertension, diabetes and gallbladder disease. One of the factors that have turned our nation so obese is the proliferation of fast foods which lead to bad eating habits. Economic pressures have forced both parents to enter the workforce leading to less time for families to eat together at home. Smoking is the number one cause of health related deaths in the world. The annual inflation in prescription cost in 2005 was between 12% and 16% (Insurance Industry Trends, 2007). Despite the need for health insurance a lot of families in America have been forced to drop their health insurance plans because they can not afford it anymore. In 2005 15.9% of the US population did not have insurance, which is 2% increase in uninsured citizens in comparison with 2004 (Insurance Industry Statistics, 2007). To cover some of the needs of this sector of the community insurance companies have created new products such as discount plans. These discount plans give the user a purchase discount on prescription drugs and sometimes these plans offer coverage for medical visits at much higher deductible rates than regular health insurance plans. The insurance companies have great influence over the health care system. They are very powerful and to a certain degree they have a type of monopolistic control over the finances of the health care providers. Their policies affect the treatment of patients. Many healthcare insurance plans have dropped the coverage of a lot prescription drugs. As a consequence doctors have been forced to prescribe inferior generic drugs to their patients. At times the bureaucratic decision making process of the insurance companies delay approval for medical procedures and the patient suffer unnecessary additional pain due to the delays. An example of the influence healthcare insurance companies have over the patient care can be seen in the healthcare system of the commonwealth of Puerto Rico. In this country there is a public healthcare plan for the poor which is controlled by a private healthcare insurance company. The insurance company forces the patients to utilize one primary doctor which is not to the liking of the user since they lose flexibility in their choice of doctor. The doctors are assigned monthly fixed payment depending on how many patients are assigned to them. Any expenses that come as a consequence of his referrals are deducted from the quota. This creates a scenario in which the doctor has to decide between the health of his patients and his ending monthly profits since his earnings are based on how much he saves from the monthly global payment. The insurance company is forcing doctors into a conflict of interest which is not good for the profession. Society has to make changes in their behaviors to reduce the need for medical assistance. Good nutrition and exercise are two great preventive measures to take care of our bodies. Reducing alcohol consumption and eliminating usage of tobacco and illegal drugs will also help people take care of their bodies and minds. Health is one of the most important aspects of human life, so is up to every one of us to make the necessary changes in our lifestyles in order to have a longer and healthier stay in this planet. References CDC.com (2007). US Obesity Trends 1985-2005. Retrieved June 2, 2007 from http://www.cdc.gov Insurance Industry Statistics (2007). 19. Retrieved June 3, 2007 from Plunkett Research database. Insurance Industry Trends (2007). 12-13. Retrieved June 3, 2007 from Plunkett Research database. Lieberson.com (2007). The History of Health Insurance in the United States. Retrieved June 2, 2007 from http://www.lieberson.com Read More