Paper Example on Curbing Healthcare Costs: Debates and Solutions

Introduction

Medical services are generally known to be costly. For instance, in the United States, the average health insurance for each family is about $20000. There has been double inflation in healthcare costs between 1990 and 2009, with nearly 17% of United States Gross Domestic Products (GDP) is spent on healthcare services (Hariri et al. 2007). Numerous debates exist on how to minimize the rates of healthcare expenses while maintaining the quality and access to healthcare (Hariri et al. 2007). A cut in Medicare and Medicaid, as well as the implementation of legislation such as the Balanced Budget Act of 1997, the Medicare Modernization Act of 2003, the Affordable Care Act (2010), and others, are some of the mechanisms that could be adopted to reduce the cost of healthcare while still maintaining the quality and access.

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Cut Medicare and Medicaid

Medicare is a program by the US federal government that provides healthcare coverage for Americans who are more than sixty-five years old and those with a disability regardless of their income levels. However, Medicaid is a program for both the federal and state governments aimed at providing healthcare coverage for Americans with low-income levels.

Based on President Trump’s 2021 proposed budget, for example, there is a suggested reduction of expenses in Medicare between the years 2021 and 2030 by a cumulative total of about $750 billion (Hariri et al. 2007). This is expected to be about a 17% decrease. Such a reduction in Medicare is expected to reduce the frauds that emanate from Medicare frauds.

It is also essential to note that the cut in the Medicare expenditure is expected to encourage the seniors to seek healthcare assistance from nurse practitioners. Cutting reimbursements to Medicare and Medicaid has often attracted debate from both the Republicans and the Democrats. For instance, some people argue that cutting on Medicare reimbursement would save general taxpayers by cutting the profits within the medical industry (Hariri et al. 2007). However, it is also argued that a cut in reimbursement rates for Medicare would imply that various senior citizens would not access their best doctors.

The cuts in Medicare would also imply a reduction in some payments to hospitals to ensure that they don't receive more payments than doctors who compete with the same healthcare service (Daw & Sommers, 2019). Again, it would the Medicare cut would also increase the out of pocket medical costs, especially for most of the senior citizens.

At the same time, it would lower the cost for the rest of the American citizens (Hariri et al. 2007). However, Medicaid is necessary for the provision of care to about 7million seniors within the United States, including those in long-term service and support as home care. However, the cut on Medicaid could hinder access to healthcare by older adults.

Legislations Such As the Balanced Budget Act of 1997, the Medicare Modernization Act of 2003, the Affordable Care Act (2010), And Others

With Congress acting as an oversight, numerous legislations are developed in the United States to protect the well-being of the general public (Daw & Sommers, 2019). Most importantly, these legislations have often been designed to reduce the cost of healthcare provision without altering the quality and access to care. Some of such legislation include;

Balanced Budget Act of 1997

To curb the intense growth in the expenses in healthcare, the Balanced Budget Act of 1997 was signed on August 5, 1997, by the United States President, Bill Clinton. The legislation contained the greatest reductions in Medicaid expenditure by the federal government since the year 1981. The legislation was expected to achieve $17 billion in gross savings within five years and $61.4 billion within ten years (Daw & Sommers, 2019).

Most importantly, the legislation removed the minimum standards of payments to be met by various states in establishing the rates for reimbursements for nursing homes, hospitals as well as community health centers (Daw & Sommers, 2019). It also provided various states to enroll in other care organizations that conduct business only with Medicaid.

The Affordable Care Act (2010)

The Affordable Care Act (ACA) was aimed at expanding access to health insurance and increasing the protection of consumers. The act also emphasized on improving the healthcare quality as well as the expansion of the health care workforce (Daw & Sommers, 2019).

Most importantly, the act focused on curbing the rising costs of healthcare. It required that various employers offer health insurance covers to their workers and the provision of tax credits to cover health insurance costs for their workers. This promotes access to health care while lowering the associated cost.

Conclusion

In conclusion, numerous debates exist on how to minimize the rates of healthcare expenses while maintaining the quality and access to healthcare. A cut in Medicare and Medicaid, as well as the implementation of legislation such as the Balanced Budget Act of 1997, the Medicare Modernization Act of 2003, the Affordable Care Act (2010), and others, are some of the mechanisms that could be adopted to reduce the cost of healthcare while still maintaining the quality and access. Some people, for instance, argue that cutting on Medicare reimbursement would save the general taxpayers by cutting the profits within the medical industry.

References

Daw, J. R., & Sommers, B. D. (2019). The Affordable Care Act and access to care for reproductive-aged and pregnant women in the United States, 2010–2016. American journal of public health, 109(4), 565-571. Retrieved from https://ajph.aphapublications.org/doi/abs/10.2105/AJPH.2018.304928

Hariri, S., Bozic, K. J., Lavernia, C., Prestipino, A., & Rubash, H. E. (2007). Medicare physician reimbursement: past, present, and future. JBJS, 89(11), 2536-2546. Retrieved from https://journals.lww.com/jbjsjournal/Citation/2007/11000/Medicare_Physician_Reimbursement__Past,_Present,.30.aspx