The Price of Health Care Service - Assignment Example

The individual can understand accounting as an action where the oil process is an integral means by which prices ultimately sets. The fact that different regions of the nation have different expenses, can be seen as one of the prime motivators for why prices fluctuate to such a great degree for the services which it previously been analyzed. For instance, the price of LASIK eye correction may be an order of magnitude higher in San Diego than it might necessarily be in Little Rock Arkansas.

This is because a host of expense differentials exist between these two locations. For instance, the heating/cooling and light bill that the San Diego office will necessarily have to engage with, is necessarily much greater than that of the somewhat less developed, less densely populated, and lower costs will rock Arkansas. Similarly, the average wages of the employees that will be required to run such an office will also be higher. This necessarily requires the price set to match these actual aerial and accounting realities (Levinrad, 2012). Similarly, with regards to actuarial services, the overall level of risk that might exist within the current market has a direct impact on the amount of money that the entity/a group will be required to pay with regards to their insurance furthermore if insurance prices within a given region are necessarily high, prices will be forced to match this as a means of continuing to generate a profit margin. The same can be said of prices being necessarily lower than the national average for insurance and the given market.

a. Argue for or against men and women being charged the same price for health care coverage ( as of 2014, it will be illegal to adjust premiums based on gender, but it will be fine to do so based on age, and place of residence.

On the issue of equity, it only seems fair that both men and women should be charged the same amount of money at the same level of health coverage. However, the reality of the matter is that on average, women require a far larger portion of health care than you meant. Naturally, part of this is a result of the process of childbearing (Hofer, 2011). Accordingly, insurance companies throughout the past few decades have sought out every available means to increase their overall level of premium from the customer. One of the means that this is been accomplished is by charging men and women different premiums about the understanding that statistics and computer modeling point to the fact that men will be far less likely to utilize their services. A differential in payment is ultimately unethical; however, it nonetheless makes reasonable and logical business sense for the insurance company. A somewhat curious about this differential is the fact that the United States government has recently stated that it will not be allowed to differentiate between the overall level of premiums paid by the number as a function of gender. However, curiously, it will still be allowed by insurance companies to differentiate based on age, and geographic place of residence.

2. assess the various types of budgeting discussed in the chapter titled" planning and budgeting for this week. ( top down, bottom up, middle out, and rolling). to determine which is most useful to the greatest number of healthcare organizations.

Whereas it cannot be definitively stated that there is a particular budgeting method that is the most effective across the board, this particular student will suggest that the middle-out budgeting process has the potential to be the most useful greatest number of health organizations' current system. This is because it combines the strengths of two different forms of budgeting tactics as a means of drawing information from both the lower levels and the upper levels of management and the environment.

Whereas the very lowest levels of any particular entity might not see the big picture, the very highest levels are oftentimes doomed to a very narrow and idealistic view of the current environment in ways in which the given branches of their entity integrate with this environment. As a function of this is oftentimes the case that middle management is best suited to realize this differential that exists between these two branches of the entity (Uyar, 2009). As such, middle-out budgeting is a combination of both top-down and bottom-up methods. In such a way, the budget is entered for each respective branch or division based on the goals which are determined by middle management. In such a way, a combination of all these budgets is brought together using a type of financial statement generator and the process yields something of a realistic and holistic approach budgeting process. Naturally, this is not to say that the other practices are not useful or applicable; rather, this particular approach is most adequately suited to such an entity as a healthcare organization. Read More