Medicare System and Health Insurance - Essay Example

There are ethical and social factors, as well as, delivery strengths that support the running of the system. Medicare operates on a universal social insurance strategy that provides health insurance coverage to the disabled and elderly. By providing a uniform benefits package to health care providers, it has achieved its aim of caring for the poorest and sickest people. It does not discriminate against individual beneficiaries and, therefore, assures truly universal coverage to Americans (Moon & Davis 2010). The Medicare program is characterized by low administrative costs. It does not advertise its services, does not pay commissions for sales, and there are no shareholders to benefit from profits.

There are no private health insurance providers that have such crucial features. The reduction in expenses ensures resources available are channeled back to the program to cater to needy Americans (Rowland & Lyons 2006). The program has a discount strategy that sets prices for physicians and hospitals at substantial discounts. The controlled pricing cautions private insurers and hospitals from exploiting the needy. The program is regulated by the federal government and is one of the top purchasers of health services. The reimbursement and coverage decisions are made by the government, and they impact how healthcare providers operate (Moon & Davis 2010). The close monitoring of the program ensures that all the beneficiaries receive equal treatment. It is hard to find another program with such a high class of equality and Medicare should, therefore, remain as it is.  Read More