Unfortunately, standard economic reasoning does not always apply to health care. According to Chernew & Fendrick (2008), “The price of prescription drugs generally exceeds marginal costs” and “when faced with cost sharing consumers reduce consumption of both high-value and low-value services” (p.…
The ethical dilemma that arises from this is the people that need the drug may or may not be able to afford the medication they need to survive. Pharmaceutical companies began trying to work with the manufactures and offer the medicine to those that did not have the means at a discounted price however they were not reduced enough for many that needed the drug to live.…
companies are charging more in the United States for medication than they do in other…
Should Medicare be allowed to negotiate drug prices? Is the debate in this case Americans on Medicare have out-of-pocket spending tends that increase with age; in 2010, beneficiaries ages 85 and older spent three times more out-of-pocket on services, on average more than beneficiaries ages 65 to 74 ($5,962 vs. $1,926). With prescription drug costs out of control since the Patient Protection and Affordable Care Act (PPACA), commonly called the Affordable Care Act (ACA) drug cost has rosen to 16.9 percent, the pro to the United States govermment negotiating prescription drug cost they can dictate how much Medicare recipates will pay, how much they will pay how often they will pay , Medicare being the largest purchaser…
From these chapter I have gain the knowledge of know, the delivery of health traditionally evolved around the individual relationship between the provider and patient/consumer. The payment was either provided by a health insurance company or paid out of pocket by the consumer. This fee-for-service system or indemnity plan increased the cost of healthcare because there were no controls on how much to charge for the providers service. As healthcare costs continued to spiral out of control throughout the decades, more experiments with contract practice and prepaid service occurred randomly across the U.S. healthcare system (Shi & Singh, 2008)…
Senterfitt, B. (2005). Material differences exist in HMO vs. insurer regulations. Managed Healthcare Executive, 15(5), 12. Retrieved April 21, 2012, from ABI/INFORM Global. (Document ID: 840744471).…
Firshein, J & Sandy, L. The Changing Approach to Managed Care (2009). Retrieved July 29, 2009 from:…
Some researchers feel that our society has unrealistically demanded the health care system to maximize quality while lowering the costs of health care services. That if we demand this change, there is no way we are realistically considering the cost of health care. I understand that everyone wants to receive the best therapy without paying a large amount of money. When you think about this idea, this plan would take time to execute. One of the cons of living in a country like the United States is that we citizens expect to have things right when we want them. I totally agree that we deserve the best services at the lowest prices. But how should we go about executing this plan? We will have to balance the plan between two approaches, the fee-for-service care and managed care. As well as their similarities and differences, these health care styles have their up and their downs. So to make the American people happy, we would have to find an intersection that could increase the quality given and the lower the cost being paid by the client. We, as citizens, should be entitled to these conditions because many people cannot afford these therapy sessions that are terribly needed. By finding this meeting ground, we will set the stage for a better health care system and possibly a healthier people.…
For some time now, Americans have been wanting to switch to a universal health care system. A healthcare system where all Americans will have access to the proper health care that is affordable and fits their needs. Some solutions that can be implemented are replacing for-profit insurance companies, reforming the health care system, and hiring insurance companies that have slow cost growths. These are excellent solutions because there are a substantial number of Americans who do not have health insurance and desperately need it. However, we should not put a national health care system into effect because our current health care system is in a corrupt state and has to be addressed before we can move forward.…
It is hard to say if it is all beneficial for the beneficiaries or for the stake holders pocket. Regardless, of the fact, most policies such as this one took years to be implemented. The cost of prescriptions had to be considered and will the new bill be what the beneficiaries want. If a new bill is developed and it is not what the people want, or asking for and it is not being profitable. It can cause the government to have another deficit. It is important for the parties to listen to the beneficiaries, so that the concerns of the beneficiaries are brought forward and considered. This particular bill would need to attract beneficiaries, even though it would be on a voluntary basis. Every party (republicans and democrat) would want the acknowledgment of passing something for the…
There has been a challenge of rapidly rising costs in relation to qualify of outcomes. We have an insurance system that is costly and inadequate for those who really need it. We are faced with the high cost of new technology along with artificial restrictions on the supply of drugs. We also have uninformed or unnecessary needy consumers. These are some of the issues faced. The government is involved but there involvement is with controlling the drugs, and insurance and medical industry advertising. This form of spending would bring costs down.…
Managed health care is a system of health care delivery managed by a company aiming mainly at quality/value cost effective services provided to patients. It has been introduced with an intention to avoid paying for unessential facilities and services directly to physicians. It helps in forming an intermediate between patients and physicians in such a way that health insurance organizations pay the physicians from the premiums paid by patients to insurers for the services provided. This helps in monitoring how cost effectively the services are utilized. It is not to be mistaken as health care delivery at discounted prices. It’s goal is to provide quality care at affordable prices by restricting patient’s choice of physicians and physicians limiting their fees. People who seek care in America are mostly enrolled in health care plans such as health maintenance organizations(HMOs) and preferred provider organizations(PPOs).The less common plan people are enrolled in is point-of-service(POS) which has features of both HMO and PPO.HMO provides integrated and preventive care services to voluntarily enrolled families with low premiums within the network of doctors and hospitals that belong to the organization. It requires to select a primary care physician(PCP) who serves as a personal doctor to provide all basic health care services. PCPs include family physicians and internal medicine physicians. Some HMOs consider pediatricians(for children), gynecologists(for women) as PCPs. Before seeing a specialist or for a diagnostic service, it is required to obtain a referral from PCP(“gatekeeper”). If an outside specialist is chosen or referral is not obtained before seeing a specialist, no coverage for services is rendered by HMO. All or most of the cost for the care must be taken care by the individual. In contrast to HMO, with a PPO it is not necessary to select a single doctor as policy holder’s PCP nor is it necessary to…
Thankfully I have not been severely hurt to the point where I have to go to the hospital. Yes I have been sick and maybe even gotten some cuts and burses along the way but I was cured in no time. For now I will keep living my healthy life style.…
HealthPocket; analysis: 80 percent of health plans charge higher premiums than they first quote to consumers. (2013). Managed Care Business Week, , 5. Retrieved from http://search.proquest.com/docview/1313166853?accountid=32521…
There are so many problems with our society's health care. Everyone wants to find a…