Medical Care Costs and Service, Research Paper Example

Today, health care costs increase year by year, while the mortality rates for simple illnesses increase. (Economic Report of the President, 2006) The report concludes that some of the reasons for this increase are: improved quality of care, technology and the better quality of life. Still, the report mentions that the poor utilization of the resources and the poorly functioning markets are also responsible for the higher costs. The below study would examine some of the major patterns that led to the increase of spending and decrease of efficiency.

Fuchs et al. (2004) confirm that there is an area difference in the level of utilization between areas, and this leads to the diversity of statistical data related to the elderly (85 to 90 years old).

The Kaiser Family Foundation (2009) explains that the 2011 health reform was long overdue, and – like in previous reforms – different groups of the society needed immediate relief. The previous reforms of the 20^th Century were triggered by social changes; in 1934-39 the NHI reform created a new deal for groups left behind because of the shrinking middle class. In 1945-50 health insurance became more national and universal. Medicare and Medicaid were founded during the 1960-65 reform, which was a part of the government’s plan to create a “Great Society”. Elderly were given federal grants to cover their health care costs. Later, in the 70-s cost-containment Trumps NHI was completed, which was followed by the Prospective Payment System and the Health Security Act.

According to the Economic Report for the President (2009), the rising premiums of health care might result in some further people dropping out of the system. People outside of the system might miss out on preventive care, and this would result in further ineffectiveness of the system.

The current policies are designed to increase private spending, while giving more incentives and higher tax rebate for HSA participants. The expanded coverage would increase the government ‘cost, however, the federal control of medicine prices and imports would make the system more cost-effective.

References

Health Care Reform. Affordable Care Act. (2011) Online. http://www.healthcare.gov/law/full/

Fuchs, V., McClellan, M., Skinner, /J. (2004) Area Di?erences in Utilization of Medical Care and Mortality among U.S. Elderly. National Bureau of Economic Research. Conference Date: May 17-20, 2001Online. http://www.nber.org/chapters/c10349.pdf

Improving Incentives in Health Care Spending. Economic Report for the President. Chapter 4 (2006) Online. http://usa.usembassy.de/etexts/econ/eop/2006/2006-4.pdf

Focus on Health Reform. (2009) Kaiser Family Foundation. Online. http://www.kff.org/healthreform/upload/7871.pdf