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Difference in the Health Care Systems of the USA and Germany - Research Paper Example

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The researcher of this essay aims to compare the health care systems of the USA and Germany. The US health care system is likely to be one of the biggest concerns of the US administration. The political analysts argue over the fact that the USA possesses the finest health care system of the world. …
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Difference in the Health Care Systems of the USA and Germany
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A Comparative Study between the Health Care Systems of the USA and Germany Introduction The US health care system is likely to be one of the biggest concerns of the US administration. The political analysts argue over the fact that the USA possesses the finest health care system of the world. The analysts’ show the causes in favour of their claim are the freely obtainable medical technology and state-of-the-art facilities. Both public and private funding becomes the main source of finance of the US health care system. In both of the sectors, although having some disadvantages, medical facilities are observed as one of the highly valued system in the USA. According to Irvine (2002), “In 2010, the Obama administration tried to address some of these problems with the Affordable Care Act (ACA), ” (p. 2) that is proved to be a universal medical care treatment in the USA. This report will help to evaluate the present US health care system. The reforms of the US health care system are likely to proceed due to re-election of the president Barack Obama in 2012 elections. This study explores the benefits of the US health care system offered to its population. The money spent by the US government on their healthcare is $2.5 trillion which is equal to 18% of the GDP. Another report says that the entire spending was 44.7% which was financed by the US government. Medicare and Medicaid are the leading public healthcare programmes were established under Lyndon Johnson’s presidency in 1965. These two programmes are monitored by the US federal Department of Health and Human Services (HHS). On the other hand the health care system of Germany is also flourishing but not better than that in the USA. In 1883, the government of Germany made obligatory nationwide health insurance. According to European observatory on health care systems (2000) “the prominence and structural continuity of social insurance is one of the key features of the historical development of Germany’s health care system to the present day” (p. 17). However, the health care system of Germany reaches its present form gradually. In Germany there are more than 100 medical scientific organizations which are unified in the Association of the Scientific Medical Societies (AWMF). These organisations are not involved with political parties and completely independent. Here parliament and the federal ministry of health are the key actors of this sector. Organization of the US Health Care System The combined health care system is the basis of the US health care system where both the private and public sectors play significant role to present a convenient and superlative health care system. In most of the cases there can be found an apparent authority of public element over private element. A report says that in 2010, more than 64% of the US population got the private health insurance which means nearly 195.9 million people were covered by this sector. In the year of 2011, the percentage of privately insured people was 63.9%. However, in the USA, there are two healthcare programmes, Medicare and Medicaid, which are supervised by the US federal Department of Health and Human Services. People over 65 years and above get Medicare service whereas Medicaid is a system that offers financial help to the poor. These systems cover nearly 87 million Americans. On the other hand, the act, Health Care Reform Provisions, which is known as Patient Protection and Affordable Care Act (H.R. 3590) was passed by the House of Representatives and signed by the U.S. President Barack Obama. The bill was passed on Sunday, March 21 and signed by the President on Tuesday, March 23. The bill, which is regarded as a comprehensive health care reform bill, was formerly passed by the Senate on December 24, 2009. Medicare Medicare benefits are provided through traditional fee-for-service handled by the federal government. In 2004, the US government spent $297 billion providing to support 42 million Medicare beneficiaries. This system covers the people of 65 years of age and above. It includes payroll taxes, general revenue, premium contributions and taxation of social safety benefits. Payroll taxes have been paid by most of the beneficiaries of standard Medicare during their working period to ensure their participation in Medicare hospitalisation programme. This system is called Medicare A. On the other hand there is another system of monthly payment of $96.40 a month. This system is called Medicare B. the rate of receiving elderly Medicare beneficiaries is 86% through these two systems. Conversely enough, in German constitution, “health promotion or protection is not specifically mentioned as a goal” (European Observatory on Health Care Systems 2000, p. 30). Medicaid Low income people and disabled are the main beneficiaries of this program. Federal law suggests that states are responsible to “cover very poor pregnant women, children, elderly, disabled, and parents” (Kao-Ping, 2006, p. 2). All Americans under 65 years of age and incomes up to 133% can get the Medicaid facility but the childless adults. Medicaid cost reaches at over $366 billion during the year of 2009. There are 51 different Medicaid program in the USA. The states and the District of Columbia administer the Medicaid program. Comparing the US health care system to the German health care system there can be found numbers of lacks in the in the concurrent legislation of Germany. Private Health Insurance Employer-sponsored insurance is the main source of receiving health insurance. Americans receive insurance from their employer as part of employees’ benefit package. These plans are controlled by private companies. In Germany, a separate insurance scheme is offered for long-term care. This system is mandatory for the entire population of Germany. Insurance contributions are divided into the employers and the employees which shows the inferiority of the German health care system. Financing of the US Health Care System There are two systems in the financing of the US health care system “the collection of money for health care (money going in), and the reimbursement of health service providers for health care (money going out)” (Kao-Ping, 2006, p. 3). The responsibility of these two processes are shared by the government as well as by private insurance companies. Taxes, Premiums and Direct or out-of-pocket payments are the sources finance at the nongovernment level. On the other hand, Medicare, Medicaid, S- CHIP, and the VA, Public employees’ premiums and Tax subsidy are the main sources that government uses for the re-imbursement. In Germany, the function of the central government is not adequate in “providing the legislative framework in which health services are delivered while much of the executive responsibility lies with the administrations of the individual states (Länder)” (Jakubowski, 1998, p. 58). Germany do not offer one budget for their health care system rather they have 17 tax-based budgets. The tax-based budget are verified by the individual parliaments. The financing which is related to the health care system is a part of the budgets of German ministry of health. The US Health Care System in an International Context In 2003, among the countries of OECD ( organization of industrialized countries), the USA spent 15% of its GDP on health care which is a highest percentage in the OECD while the average percentage of spent on health care of other OECD countries was 8.6%. In the year of 2003, the health spending per capita of the USA was $5,635 US dollars which shows leading expenditure of the USA among the OECD countries. Study shows that the health spending had been increased 2003 4.6% per year on average during the year of 1998 to 2003. In all OECD countries public sector become the principal source of health funding except the United States, Mexico and Korea. Report says that in the USA, 44% of health expenditure is collected from government revenues which. In the USA, private insurance covers 37% of total health spending. France, Canada, and the Netherlands also have a comparatively massive share of financial support come from private insurance which is more than 10%. Conclusion The most vital Subject matter for present and future improvements are: financing and compensation, health technology assessment (HTA), the disintegration of health care between sectors and payers and communism versus contest. Germany health care system emphasises on free, massive numbers of providers and technological support than on cost efficiency. In Germany, the expense of health care is more than 11% of its total GDP in health care whereas the USA spends 17.7% of its GDP. Although there are some restrictions, insurance coverage for the dependants is also outstanding. The health care systems in both the USA and Germany are almost same. The health care system of Germany is a model system. On the other hand USA health care system is a innovative one that should be placed on the first position based on its technological, administrative and financial advantages. Indeed, the US government has taken several steps to offer most convenient health care system for its people. The study revealed the truth that the health care system of the USA is really beneficial not only for its people but also for the entire world. Reference Chua, Kao-Ping, (2006). Overview of the U.S. health care system. Retrieved from http://www.amsa.org/AMSA/Libraries/Committee_Docs/HealthCareSystemOverview.sflb.ashx Health Care Systems in Transition: Germany, (2000). European observatory on health care systems. Retrieved from http://www.euro.who.int/__data/assets/pdf_file/0010/80776/E68952.pdf Irvine, B. (2013). Healthcare systems: the USA. Retrieved from http://www.civitas.org.uk/nhs/download/USABrief.pdf Jakubowski, E. (1998). Health care systems in the EU: a comparative study. Retrieved from http://www.europarl.europa.eu/workingpapers/saco/pdf/101_en.pdf Read More
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