Cost Effective vs. Quality Effective Choices in Health Care, Research Paper Example

Introduction

Considerably, the most polarized sector in the United States is the health sector with some Americans arguing that America has health care that is the best while other are against the above issue, argues Kao-Ping Chua in his 2005 – to 2006 book. On the other hand, there are those who have a notion that the American system of health is inefficient as well as fragmented. Uniquely, this is as a result that Americans use a lot of money and resources on health. It is argued that there is no any other country that does spend a lot of money as America. In   opinion the above statement is not accounted for therefore it is not justifiable whether it is true or false statement. In his literature, Kao-Ping Chua states that there are those people who favor the fact that health care system in America is administered on a fare basis while others are against this fact. Apparently, to understand precisely the above phenomena one has to understand not only the exact flow of the health care system of America but also health care system of the entire world. With the correct understanding of the entire world will give a clear way whether the Americans are using a lot of money on health care services without the relevant services to the natives in return or it is unproved statements.

The U.S health care system organization

Considerably as other countries, there is both public and private system in the US, for insurers on health care system. Notably, in the US country private insurers dominates the public insurers. The above is one of the unique, notable characteristics that many countries have not embraced so far. Evidently, the research illustrates that during the year 2003, there were elderly members about 62 % of the elderly people who received private sponsorship insurance by the employer, while 55 purchased insurance on a group that was not private. Further 15 % got enrolment in the insurance programs of the public for instance the Medicaid and lastly those that were uninsured were 18%.

Public insurance 2

Primarily, Medicare program is a program that does not only cover elderly of over 65 years but also covers the disabled persons.

Administration: the government singly funds this program. Thus, this illustrates the idea that only one entity is entitled to offer insurance, which is the government. Medicare gets its finances by payroll, federal income tax. Part A Medicare is entitled to cover the hospital services while part B is entitled to cover the physician’s services.

Similarly, here is Medicare part 3 structural formation where its basic concerns are the disabled and low-income earners. This is due to the law that state that it is mandatory to cover the poor and pregnant women. Unfortunately, with this type of Medicare insurance, those adults with no children are excluded form the cover. Therefore, those individuals who are without children, makes too much for the qualification of the Medicaid cover. Federal government and the State’s, jointly offer the financial assistance to the Medicaid. Generally, the federal government pays almost 575 of all the Medicaid costs. Here, it is pertinent that the benefits of the Medicaid lay on the prescription of drugs.

Therefore, to curb it all, this is the public health system in the US and other related countries. Dr. Kao Ping analyzes the above in his 2005-2006 books entitled the U.S health care overview.

On the other hand, Garson Arthur in his book US health care 2010 systems argues the following: in his proposal, the deteriorating US health care system can be overridden by several factors. What he analyses here are the principles, problems, and proposed solutions in addressing the system of health care system in the US. Thus, here are the notable problem and described as the universal coverage. Here he goes ahead and affirms that any plans must have the basis of universal coverage (Jonas, 2009.p.364). Further, he says that the American enrolment in a basic plan guarantees on to choice his or her own health plan. The above argument by Arthur makes a good bridge for that the poor members of the American family will benefit fully. In addition, it gives the family members go ahead in changing and using different plans annually. Another factor that Arthurs illustrates is the poor government system. Here he points out that there is a factor of government mix, which is not suitable to the Americans. Another Arthur’s notable problem is the restrictions of job choice as well as the health care. Nowadays, the insurance systems that the employer is the controller do restrict individuals to make their own choice, and because of the fear of loosing coverage, many parsons are locked in the jobs. Some other notable problems by Arthur are the nightmares of the administrative, quality of the health care and financing just to mention but a few.

Structure of the drug price systems in the United States

There are several facts and element in the regulation book volume 23, no 1, that will effectively lead us to the exact analysis of the price of drugs in the US. Notable with the research done by several scholars in this literature, they illustrate that the following factors either will directly or indirectly affect the drug price control. Some of the factors are the domestic price differences and the cross-national price that has been alleged. There is unorganized way of offering discounts. Here, discounts are offered to the large buyers, which do not in any way reduce the price imposed to the elderly or the retailers who pay cash. The certain forms of price regulation, setting of uniform prices included, normally discourage innovation as well as competition. He goes ahead to recommend that for the sake of the elderly, the beat way of making them acquire drugs more easily is by letting them (elderly) choose among the known competitive private sector. This phenomenon is yet to be established and so many elderly people are still under the hard times when it comes for treatment.

Here, the author mangers to narrow down to the fact that in the US, the drug is more is more expensive compared to other countries as Mexico and Canada. Apparently, the government reform community earlier on did the study in the year 1998.after the research on the amount of drug price in America and the Canada, it was noted that US had almost 72 percent higher than Canada. The worst part is the dug price were almost 102 higher than Mexico. With the above illustration, then we can acknowledge and concur with Kao-Pian Chua that the drug in US health care center is more expensive than other countries. Several countries do control drug price either indirectly or using the direct method as Italy and France. Indirect pricing control entails the reimbursements limits under the social insurance proposal. In addition, price control on drugs may be controlled using the profit controls as the likes of Japan and Germany countries.

Drugs made more affordable

Considerably, the article points out that the American is charging drugs higher in their hometown than how it charges in the foreign countries. Allegation put it that there is cost shifting in the United States to retail customers and cash paying with many including the elderly (Shi & Singh 2009.p.532). Here, it is noted that the elderly does pay a lot for the drug price compared to the managed care organizations where they are given by the huge discounts by the sellers. Patricia on the other hand argues that the research done is not correct since the samples are collected on an exceptionally small section of people with small sample of brands. According to the study made by Patricia, she affirms that generic drugs are cheaper and so there is no way pharmaceutical are making profits by inducing price in place. She argues that, 46 percent are accounted by the generics of the prescription written in the US. Further, she adds that the Medicaid programs in the US gears the generics substitution by the brands. Additionally, she says countries like Canada, Germany and the UK allows the substitution of the generics to the brands. Therefore, she denies the fact that brands are being sold highly in the American market other compared to the foreigners.

Domestic price differences

In 1998, the government reforms released another report, where the report did concern the elderly being taxed higher at the expense of the other large quantity buyers. They compiled report and analyzed it. It was realized that some organization do shallow research which again gives out incorrect information on the distribution of drugs with the price brands. Because of unclear evidence on who among the above has the correct literature on the pricing the price in the American states is not unlikely. This calls for the intervention f the government in order to establish a correct pricing schedule that will into favor a particular side.

Pharmaceutical

Pharmaceutical in the US has raised alarm in the market prior to the numerous sales it has experienced in the past years. Averagely, they have managed to make almost 12 to 13 percent profits over the past 15 years this is by the Ernst R Berndt (Niles, 2007.p.123). The tradition microeconomics between the medium, short and long-term cost are more crucial. Entirely, the pharmaceutical departments depend mainly on the developed and reach efforts of the short run. It is noteworthy that the cost of developing another single tablet is much less. This is because the marginalized cost is largely sunk.

Pharmaceutical expenditure

Pharmaceuticals in one way or another contributes at large to the economy of the US this is per the Ernst Berndt context.

Notably, hospital care has been the most outstanding expenditures of the health care with a range of the 330 to 44 percent. The second largest component is the physician services with an almost 20-23 percent, this comprised the total expenditure of the health care. However, by 2000, the pharmaceutical outputs had amounted to almost 9.7 percent of US total. On the other hand, health care expenditures were recorded to be slightly lower than the previous 10.77 percent US total share. Expenditure of 121.8 billion had bee translated form the $450 for each person.

The pharmaceutical price

There is controversial as well as complexity in the price of the pharmaceuticals, there are instructive sights analyzed by the economic theory. Primarily, there is distinguishing of a more useful prescription of drugs (Andersen, 2007.p.56). The drugs are sorted out keenly to separate those will expired patent form those with unexpired patent. Frankly, the innovating firm gets a full mandate of selling if their drugs are branded. In addition, this branding determines the cost of the single drug. Similarly, this is literature by Arthur, which seems to be clear.

The effect of Obama on health care

So far, Obama has tried to minimize the cost of medication with his obamacare campaign. Since his ruling, he had put much emphasis on the health care insurance. Generally, this will benefit in the life of those who frequent the hospital but it will be a pressing issue to those who do not frequent the market. According to the CNN report, it is evident that by the year 2014 every American will have been insured for the health Medicare. The report goes a head to illustrate that, if by the year 2014 some members will not have enrolled or rather insured, the concerned a certain amount is paid as fine detailed. CNN further points out that the ruling was done in the court and so at this moment, the rule is on and everyone is required to adhere to that. More so, the court ruling evident the fact that if any one violets this he or she awarded fine as follows (Austin & Wetle, 2008.p.235). For $285 per family of 1% income, and when it comes to 2016,then the amount will have increased by per family of less than $2.0 5 income, the fine will be $2,085 per family. Despite of the act that Obama have been operating in a more influential manner, the health care insurance is not the best. Simply because, the American people get insured, the more tax they pay. In other words, the living standard will increase far much higher than the current states affirm the CNN media group. Concur with the report because the main basic source that will carter for the Medicare will automatically come from the pockets of the American natives.

Summary

This literature review analyses the notion that American sale medicine to the fellow American at a higher rate compared to the amount they sale to the neighbors. Conclusively, this is literature from the Mr. Chua and Mr. Arthur. Another discussed factor is that, several problems that the US government should settle so that they may lead a cheaper way of living. On contrary, Ernst affirms that the research made on the above phenomena was not clear. He argues that the samples of the branded medicine darned few to give out correct information were used to analyze this, therefore he nullifies the results. According to Arthur, he also points out that discounts are being given to the quantity buyer giving a cold shoulder to the elderly and the single customers. However, the above facilitates making it possible for the price to increase.

References

Andersen, R. M.(2007).Changing the U.S. Health Care System: Key Issues in Health Services Policy and Management. New York, NY: John Wiley & Sons.

Austin, A., & Wetle, V. (2008). The United States Health Care System: Combining Business, Health. London: Prentice Hall.

Jonas, S. (2009). An Introduction to the US Health Care System. London: Springer Publishing Company.

Niles, P. (2007).Basics of the U.S. Health Care System. Chicago: Jones & Bartlett Learning.

Shi, L., & Singh, D. (2009). Essentials of the U.S. Health Care System. New York, NY: Jones & Bartlett Publishers.