U.S. Health Reform: Governmentʼs Role Under the Patient Protection and Affordable Care Act (Ppaca)
U.S. Health Reform: Governmentʼs Role Under the Patient Protection and Affordable Care Act (PPACA)
Health Economics and Policy- HSM 544-61599 DeVry University- Keller Graduate School of Management
Case Study 2 Professor Alan Fowler December 3, 2012
Respectfully Submitted by Wanda H. Jones
INTRODUCTION
The quality and cost problems of the U.S. health care system are not going away. The
Institute of Medicine (IOM) proclaims that the system is in need of “fundamental change” and that “patients, doctors, nurses, and health care leaders are concerned that the care delivered is not, essentially, the care we should receive. Healthcare costs and reform will continue to grab more and more headlines in 2013. Any
service that is on track to consume approximately 40% of the gross national product of the worldʼs largest economy by the year 2050 will be hard to ignore. Business management already feels the effects of healthcare costs more acutely than most consumers. Several recent studies and proposals shed light on the problems and possible solutions. To put things in perspective, U.S. healthcare currently costs about $2 trillion per year.1 Of
this more than $600 billion (31%) is never seen by recipients. It goes for administration. On a per capita basis, it is roughly $280 billion more than is spent for the administration in other twenty-one countries whose life expectancies exceed those in the U.S., all of whom have some taxpayer-financed; single-payer system (socialized medicine).2 Yet, the current system leaves more than 40 million Americans without health insurance. Because many are not employed or have very low incomes, programs that provide incentives through employers and tax relief don 't help them. The problems of quality and cost in US health care system are unlikely to be solved
without strong leadership from the federal government, which can mobilize action to set national priorities for quality; develop and promulgate
Health Economics and Policy- HSM 544-61599 DeVry University- Keller Graduate School of Management
Case Study 2 Professor Alan Fowler December 3, 2012
Respectfully Submitted by Wanda H. Jones
INTRODUCTION
The quality and cost problems of the U.S. health care system are not going away. The
Institute of Medicine (IOM) proclaims that the system is in need of “fundamental change” and that “patients, doctors, nurses, and health care leaders are concerned that the care delivered is not, essentially, the care we should receive. Healthcare costs and reform will continue to grab more and more headlines in 2013. Any
service that is on track to consume approximately 40% of the gross national product of the worldʼs largest economy by the year 2050 will be hard to ignore. Business management already feels the effects of healthcare costs more acutely than most consumers. Several recent studies and proposals shed light on the problems and possible solutions. To put things in perspective, U.S. healthcare currently costs about $2 trillion per year.1 Of
this more than $600 billion (31%) is never seen by recipients. It goes for administration. On a per capita basis, it is roughly $280 billion more than is spent for the administration in other twenty-one countries whose life expectancies exceed those in the U.S., all of whom have some taxpayer-financed; single-payer system (socialized medicine).2 Yet, the current system leaves more than 40 million Americans without health insurance. Because many are not employed or have very low incomes, programs that provide incentives through employers and tax relief don 't help them. The problems of quality and cost in US health care system are unlikely to be solved
without strong leadership from the federal government, which can mobilize action to set national priorities for quality; develop and promulgate
References: 2. Grayson, M., Pennington, R. “The Patient Protection and Affordable Care Act (ACA): Implications for State Procurement Officials.” Retrieved from www.naspo.org/whitepapers/ healthcare_July2011.cfm December 1, 2012. 5. Hilstead, R., Bigelow, J., Bowler, A., Girosi, F., Meeli, R., Scoville, R., Taylor, R. “ Can Electronic Medical Records Transform Healthcare: Potential Health Benefits, Savings and Costs.” Health Affairs (2005) Vol 24 7. Schoenbaum, S., Audet, A,J., Davis, K. “ Obtaining Greater Value from Health Care: The Role of the US Government.” Health Affairs (2003), vol 8. Wiener, J.M, (2010) What does health reform mean for long-term care? Public Policy & Aging Report, 20 (2) 8-15. 10. Are Home Health Agencies Still a Good Investment? August 6, 2010 Retrieved from caps.fool.com/blogs/are-home-health-agencies-still/429795