Healthcare Reimbursement, Capstone Project Example

Government health reimbursement is a government program that extends healthcare coverage to unprivileged members of the society. Over the past years, there has been expansion of Medicaid. There has also been evolution of eligibility requirements and the reimbursement rates by healthcare providers affect the accessibility of health care services. Medicaid reimbursement affects the both the providers of the services as well as the number of services offered. An increase in the rate of healthcare reimbursement increases the chances of patients accessing and obtaining healthcare. An increase in t he number of medical practitioners increases the reimbursement rates. Healthcare policies examine the presence of reimbursement barriers to healthcare services. Lack of proper coverage and the presence of uneven reimbursement policies inhibit access to proper healthcare services.

There are several implications for reduced government subsidized healthcare reimbursement. First, government subsidies lead to increased heath coverage. Health coverage extends to several people through subsidies. These subsidies make employees prefer health coverage to income tax making employers offer health insurance as employee compensation (Joint Committee on Taxation, 2006). Through coverage that employers offer, tax subsidies promote employment based pooling and coverage that is more affordable. Insurance sponsored by employers provides coverage beyond the current year thus protecting employees from the risk of losing coverage or their premiums being prohibited (Burman, Uccello, Wheaton, & Kobes, 2003).

Government subsidies also result in predominance of insurance sponsored by the employers. The ease of managing employer sponsored insurance results in predominance as a health coverage means. Research shows that over 65% of a population depends on employer-sponsored insurance for personal and family insurance. Tax subsidies for health insurance also facilitate the presence of a more comprehensive coverage as premiums are also subsidized. Total inclusive coverage has its benefits. It provides better preventive care and long-run savings for specific medical conditions. It also lessens the rate at which one exposes to financial risks. However, total inclusive insurance may also be excessive coverage and result in excessive use of medical services as consumers do not pay for the actual costs of the medical care they receive (Lyke, 2004). As a result, consumption through private insurance makes insurance costs go up.

To be able to compensate for government subsidies making late, reduced or non-payments, the health management need to seek different methods to compensate for them. According to Cogan, Hubbard, and Kessler (2005), all health care expenses need to be of a considerable price for all tho0se who purchase health insurance. To them, this decreases the price of health service out-of pocket expenses, encouraging buying of policies at lower costs and higher deductible policies. They further believe that these higher deductible policies lower the healthcare costs.

Another measure is to offer tax credit for low-income persons and families purchasing health insurance. Slowly, the credit phases out gradually with income. It interferes with the insurance sponsored by employees and the price is not equal to the credit available to all income levels. There is unlimited credit for any health coverage. Gruber and Levitt suggest that expanding a refundable credit is not important in applying in health insurance expenditure though it can expand coverage.

Therefore, it is important to note that the current tax structures favour high-income earners and those enrolled in employer-sponsored insurance in large firms. The result is that the beneficiaries are those insured by their employers. The low-income earners are not able to benefit from this scheme. Tax subsidy encourages the presence of total coverage and comprehensive policies enabling better access to health services.

References

Joint Committee on Taxation. (2006). “Present Law and Analysis Relating to the Tax Treatment of Health Care Expenses.” Joint Committee on Taxation. Washington, D.C.; 2006:22

Burman, LE, Uccello CE, Wheaton LK, & Kobes D. (2003). “Tax Incentives for Health Insurance.” Washington, DC: Tax Policy Center (Urban-Brookings); May 2003. Discussion Paper No. 12

Lyke, B. (2004). “Tax Benefits for Health Insurance:” Current Legislation. Washington, D.C.: Congressional Research Service, The Library of Congress; October 24, 2004 (updated). IB98037.

Burman, LE. (2006). “Taking a Checkup on the Nation’s Health Care Tax Policy: a Prognosis:” a Testimony. 2006:23. Located at: Testimony before the U.S. Senate Committee on Finance, Washington, D.C.

Cogan, JF, Hubbard, RG, & Kessler, DP. (2005). “Making Markets Work: Five Steps to a Better Health Care System.” Health Aff. 24(6):1447-145.