...Health Care Service Corporation Market Department To: Denise A Bujak, Vice President From: Market Research Assistant Subject: Summary Report-Information about Health Care Date: 28 June, 2011 The purpose of this memo is to summarize three popular writer’s views regarding the U.S. health-care system. Chris Farrell, Steve Forbes, and Greg Nelson analyze the current market trends and offer us their methods to improve the economy of the health insurance industry. Summary In general, there are some flaws in the U.S. health-care. All three writers point out different ways to fix it. In their passages, the main point of distinction involves government intervention in the market. Farrell prefers the universal coverage on health-care, claiming that government intervention will promote the economy in the short-term. In contrast, Forbes hopes through macro-control to adjust the current insurance market. Nelson supports government intervention as a means to cut administration cost and help the health-care system run well. Discussion In their discussions, they hope health-care reform can speed up U.S. economic recovery and help most people are insured. For our company, I think we need to know more information about the U.S. health-care reform which is good for us to make a right direction in a long term. Now, we are starting to share their opinions. Chris Farrell adopts the health care reform, because he...
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...Assignment 3 Market Model Patterns of Change Professor Koros Strayer University The Industry and General Pattern of Change Of Market Model The fast paced industry surrounding health insurance in the United States has experienced rapid growth. There are numerous providers representing a competitive marketplace where no single entity rules over prices. However, the industry is undergoing massive transformation processes and slowly evolving into an oligopoly, where only a few large firms will eventually control market dynamics. Throughout the years there has been more than 500 mergers involving health insurers (Bakhtiari, 2010). Although many small insurance companies operate in the market, the industry Led by WellPoint, 12 health plans cover two-thirds of the enrolment in the U.S. commercial-insurance market (Bloomberg News, 2010) . There are reports that predict over 100 insurers with 200,000 members or less could be pushed out of business, because smaller insurers are unable to invest in the infrastructure and technology to effectively manage care (Bakhtiari, 2010). The good news is that small companies are being merged with larger companies rather than going out of business. The Long and Short Run Behaviors in a “Market Economy” We understand there is no single theory to explain oligopoly behavior, however for this comparison; we will use the Kinked-Demand theory of Oligopoly. The kinked demand model assumes that other firms will ignore the increase, if one firm...
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...1.What are some of the advantages and disadvantages of the current health care system in the United States? Some disadvantages of the current health care system in the United States is tons of people have no healthcare insurance at all and many of the insurance coverages have such high premium and deductibles people can't afford it. For you to be eligible for Medicaid you have to have a very low income. To get Medicare you have to be a certain age and Medicare doesn't cover all health care costs. For Private health care insurance you have to have a clean bill of health and if you have health conditions they will deny you coverage. But if private insurance companies are willing to give you insurance the premiums are so high and the deductibles are so high its really only catastrophic health insurance. Catastrophic insurance is not the kind of insurance that helps you pay for doctor visits, tests, and medications. There is so much more disadvantages in the current health care insurance system that it is not even funny. Also Insurance companies will cancel your insurance if you have a very serious surgery if you have a syndrome that you didn't tell the doctor about and you have to undergo a surgery that costs a lot of money they will drop you as soon as they can. Some Advantages of the current health care system is if you have really great is insurance you won't have to pay little to nothing on the doctor bills and you can get the medical attention you are needing. ...
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...HSA 510 POWERPOINT ASSIGNMENT 3 Assignment 3: The Convergence of Health Care Financing and Economic Trends and Forces Due Week 8 and worth 100 points Note: Use the textbook, course readings, Strayer online library, and other reputable online sources to complete this assignment. Prepare a fifteen to twenty (15 to 20) slide Microsoft® PowerPoint® presentation with detailed scholarly speaker notes in which you: 1. Compare the three (3) current health care financing and funding models (i.e., employee based, government based, and individual based) used with the health care delivery system of the United States. 2. Compare and contrast key economic goals of public and private health insurance plans. Evaluate the success potential of key economic goals in terms of populations covered, services included, financing arrangements, reimbursement strategies, and economic competition policies. 3. Analyze the key effects of labor market, insurance market, and competitive market factors on health care delivery requirements at your current or previous organization of employment. 4. Determine what changes are occurring in the economy or concerning labor and regulatory factors that must be considered in the future. 5. Suggest the key national trends that you believe currently affect competition and pricing initiatives. Justify your response. 6. Determine the main quality indicators that typically affect health insurance pricing at the local level. Justify your response. 7. Use a minimum...
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...1.What are some of the advantages and disadvantages of the current health care system in the United States? Some disadvantages of the current health care system in the United States is tons of people have no healthcare insurance at all and many of the insurance coverages have such high premium and deductibles people can't afford it. For you to be eligible for Medicaid you have to have a very low income. To get Medicare you have to be a certain age and Medicare doesn't cover all health care costs. For Private health care insurance you have to have a clean bill of health and if you have health conditions they will deny you coverage. But if private insurance companies are willing to give you insurance the premiums are so high and the deductibles are so high its really only catastrophic health insurance. Catastrophic insurance is not the kind of insurance that helps you pay for doctor visits, tests, and medications. There is so much more disadvantages in the current health care insurance system that it is not even funny. Also Insurance companies will cancel your insurance if you have a very serious surgery if you have a syndrome that you didn't tell the doctor about and you have to undergo a surgery that costs a lot of money they will drop you as soon as they can. Some Advantages of the current health care system is if you have really great is insurance you won't have to pay little to nothing on the doctor bills and you can get the medical attention you are needing. ...
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...Date: | April 25th, 2012 | Subject: | Health Care Spending Growth and Reform | SUMMARY The following memo seeks to highlight the past and current problems facing federal health care expenditures within the U.S. It tries to answer the question if health care spending is now on more sustainable path along with giving projections for its current outlook. More specifically it addresses “supply-side” reforms, “demand-side” reforms and “voucher” reforms within the Medicare program, analyzing the benefits and downsides of each and what underlying problems these approaches contain. The memo summarises with recommendations as to which reform should be put in practice to achieve the desired results within the health care market. PROBLEM ANALYSIS 1. Health care expenditures are on an unsustainable path Reasons: * Aging of the population * Increase in health care costs due to excessive coverage * New medical technologies Under current law, spending for mandatory health care programs would increase from 5.6% of GDP today to about 9% of GDP in 2035. Total health care spending grew by 3.9% in 2010 and reached $2.6 trillion, or $8,402 per person. This is mainly caused by an aging of the population, an increase in retirement of the “baby boomer” generation, a rise in health care costs and a rapid innovation of medical technologies. All these factors lead to an increase in the federal budget deficit. Although recently health expenditure growth has slowed, the decline...
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...1. Describe the industry and explain the general pattern of change of the particular market model Health insurance in the United States providers represent competitive market because they are numerous, variety of choices, and no single entity has much power over prices. The health insurance can be considered as rapid growth industry. Recently, this industry is transforming in a rapid way and evolving into an oligopoly. Insurance markets in many states are eventually controlled and dominated by a few large firms. There were more than five hundred health insurers involved mergers between 1998 and 2008 (Bakhtiari, 2010). Although there are hundreds of small insurance companies operating in the market, the industry Led by WellPoint, 12 health plans cover two-thirds of the enrollment in the U.S. commercial-insurance market (Bloomberg News, 2010). An analyst's report cited in the article predicts there will be 100 insurers with around 200,000 members could be forced out of business. Smaller insurers are increasingly unable to invest in the infrastructure and technology to effectively manage care (Bakhtiari, 2010). However, mergers have been the main power rather than small insurers going out of business. 2. Hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a “market economy” This paper uses Kinked-Demand theory of oligopoly; there is no single theory that explains oligopoly behavior. The kinked demand model assumes that if...
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...Health Care Economics and the Uninsured School of Nursing Health Care Economics and the Uninsured The United States health care system is a large and complex structure organized to deliver health care services to the country’s residents (Maurer, 2013). The system is not systematically organized, but is the result of the interrelationships between numerous influences such as culture, consumers, epidemiology, health professionals, governmental policy, technology, and economics (Maurer, 2013). Due to the various, and, often conflicting, interests on the U.S. health care system, large disparities exist in the delivery of health care to consumers. In fact, according to Maurer (2013), “the consumer is the most vulnerable component and is the most likely to be hurt by ineffective functioning of the system” (p. 63). Because of the ineffectiveness of the current system for so many Americans and the disparities that exist among consumers, the American Nurses Association [ANA] (2008) described the current U.S. health care system as “in a state of crisis” (Executive Summary, para. 1). For many Americans, the major obstacle preventing them from receiving quality and reliable health care is a lack of health insurance (Agency for Healthcare Research and Quality [AHRQ], 2012; Maurer, 2013; Kaiser Commission on Medicaid and the Uninsured [KCM&U], 2012). More specifically, the way our health care system is financed, a piecemeal approach of...
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...Market Model Patterns of Change Jennifer Harris Dr. Faux Economics 550 August 24, 2013 The healthcare insurance industry is an industry that is growing fast and is extremely competitive. New laws are causing the healthcare insurance industry to change rapidly. This industry operates as an oligopoly with a few big firms controlling the majority of the market. The price for coverage is not dictated by only one provider. In the oligopoly model no single theory explains the behavior that is evident. The degree of competitiveness is affected by the economy, law, technology, and the number of firms in the market. Medical loss ratios are often used to help managers understand industry characteristics. Competitors to this industry have changed over the years as well now the closest competitors are government provided insurance, persons who pay out of pocket, and the private sector that operates on donations. I think a good pricing policy for insurance companies to adopt would be one that is based on income. The new health insurance law (Obamacare) is requiring that all Americans carry insurance by January 1, 2014. This law will change the health insurance industry rapidly. The big New York Stock Exchange-listed insurance firms have known for many years that their core business models are not sustainable. The insurance companies have tried to ignore the risk that they were assuming because of pressure from Wall Street. The big companies have done this by simply administering...
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...1. Describe the industry and explain the general pattern of change of the particular market model Health insurance in the United States providers represent competitive market because they are numerous, variety of choices, and no single entity has much power over prices. The health insurance can be considered as rapid growth industry. Recently, this industry is transforming in a rapid way and evolving into an oligopoly. Insurance markets in many states are eventually controlled and dominated by a few large firms. There were more than five hundred health insurers involved mergers between 1998 and 2008 (Bakhtiari, 2010). Although there are hundreds of small insurance companies operating in the market, the industry Led by WellPoint, 12 health plans cover two-thirds of the enrollment in the U.S. commercial-insurance market (Bloomberg News, 2010). An analyst's report cited in the article predicts there will be 100 insurers with around 200,000 members could be forced out of business. Smaller insurers are increasingly unable to invest in the infrastructure and technology to effectively manage care (Bakhtiari, 2010). However, mergers have been the main power rather than small insurers going out of business. 2. Hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a “market economy” This paper uses Kinked-Demand theory of oligopoly; there is no single theory that explains oligopoly behavior. The kinked demand model assumes that if...
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...Reform……………………………………………………………………………..…4 The Problem with the ACA……………………………………………………………………………………………6 The Current Policy………………………………………………………………………………………………………..8 Policy Alternatives………………………………………………………………………………………………………10 Evaluation Criteria………………………………………………………………………………………………………10 Policy Recommendation……………………………………………………………………………………………..12 Conclusion…………………………………………………………………………………………………………………..13 References………………………………………………………………………………………………………………….14 Introduction Recent health care reform legislation, The Patient Protection and Affordable Care Act and Education Reconciliation Act, which is now being referred to simply as the Affordable Care Act (ACA), was signed into law by President Obama on March 23, 2010. Since the 20th century, several United States presidents have faced challenges in passing national health reform into law. Before the ACA was enacted, national health reform proposals under different governments in the United States faced strong opposition from various stakeholders and multiple interest groups. Therefore, the enactment of the ACA is revolutionary healthcare reform in the history of the United States. Healthcare insurance is a program that assists in paying medical expenses through privately purchased insurance or social welfare programs. In other words, health insurance is a system that provides protection against health costs. This newly legislated healthcare reform offers health insurance for all Americans and legal residents in the United States. Furthermore, the...
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...of the current healthcare system in the United States? Some advantages are the U.S. has one of the best medical research systems in the world. For those who have jobs with great benefits or those who can afford it, some American insurance plans are some of the best in the world. Taxpayers do not bear the expenses associated with providing medical insurance to every single person. Some disadvantages are that the current healthcare system is that people spend much more in the U.S. for healthcare, but Americans aren’t healthier. The U.S. spent nearly 14 percent of its total GDP (gross domestic product) on healthcare. A major disadvantage of the American healthcare system is the fact that many individuals are underinsured or uninsured. 2.) About how many individuals in the US go bankrupt each year due to medical bills? As of 2007, a Harvard study shows that at least 60 percent of bankruptcies are related to medical bills. Even people with health insurance are filing for bankruptcies. Insurance premiums, deductibles, co-pay, and out of pocket expenses cause medical bills to drown individuals and families in medical debt. 3.) What can make a person uninsurable in the private health insurance market? What can make someone uninsurable for the private health insurance market is if they have had health problems like heart surgeries or heart problems, cancer, or if they are not healthy. 4.) Does the health insurance system in the US affect the work of health scientists...
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...____ 1. ____ 2. ____ 3. ____ 4. ____ 5. General Information Sheet Property List Debt List Monthly Expenses Visitation Schedule ( Please review and make any changes you desire-for each change please state your reason for such change) DOCUMENTS TO BE PROVIDED TO ATTORNEY (Please provide copies - we would prefer you keep your originals) ____ 1. ____ 2. ____ 3. Past three years tax returns, including W-2 forms Current pay stubs from January to present Past six months bank statements for all checking and savings accounts (upon receiving it, provide current months bank statement) Verification of debts (i.e., credit card statements, invoices, monthly statements, etc.) Verification of assets (i.e., monthly or quarterly statement of any asset listed above in General Information Sheet) Vehicle titles Boat titles, Motorcycle titles NADA (blue book) value of automobiles (highlight car value - you may obtain this information from a bank, car dealership, etc.) Warranty Deed or Quit Claim Deedto all real estate, including residence and/or any and all land. Verification of medical insurance cost for children only Verification of monthly day care cost for children Costs of transportation for visitation Verification of other child support payments made either by you or your spouse for any children of a previous marriage or children prior to marriage Certificates of Deposit ____ 4. ____ 5. ____ 6. ____ 7. ____ 8. ____ 9. ____ 10. ____ 11. ____ 12. ____ 13. ____ 14. GENERAL INFORMATION...
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...ABSTRACT The rising costs of health care plans in America is uncontrollable. The number of citizens who are living without health care insurance continues to rise, while at the same time the price of having insurance continues to grow. Instead of the government reforming the health care system, they continue to spend billions of dollars in aid through Medicare, Medicaid, Tricare, and other government programs - Dollars that could perhaps be better spent on funding programs to ensure every American is provided an affordable health insurance. Over the past year it has become apparent that insurance companies are looking to capitalize by setting premiums higher, as the President talks about implementing a mandate on citizens to have health care. The debate on whether health care should be a profit market or Government controlled should be considered. Through all the turmoil, one thing is certain: America is in need of a Health Care Reform. PREFACE Growing up on poverty, my parents did their best to provide what they could. I was fortunate to be put into State custody at a young age and my brothers and I received full medical treatment under Medicare. A government funded subsidy that allowed us to have free medical attention. As a child, not much thought went into the idea, but as I got older I realized the importance of health insurance. My foster mother had to be rushed to the hospital a few times due to really bad asthma attacks, apparently...
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...Health Care Necessity for a Universal Health Care System in America Health care reform has recently become top priority for policy makers, and health administrators. The current health care system faces many costly problems for the uninsured/underinsured, employment-based insurance coverage, and financially burdened health service providers. Although policy makers have made many attempts to raise the number of insured, through programs such as Medicare, Medicaid, the number of uninsured Americans continues to rise. Currently 45 million American have no health insurance and children make up approximately 10 million of that number reported by the U.S. Census Bureau (8-10). The politicians and largely the medical societies, appear to be unable to decide what society’s responsibility in health care should be to those who are unable to purchase basic coverage. Surveys conducted by institutions like the Robert Wood Johnson Foundation, and the Henry J. Kaiser Family Foundation have noted that the proportion of people named the uninsured as the single most important domestic issue. Additionally, the Woods and Kaiser Foundation study concludes 55% of the participants expressed willingness to pay some level of taxes to cover the uninsured (1-4). The majority thought that the uninsured should be offered a federal funded health care package. Universal health can enhance health and well-being by promoting access to high-quality care that is cost effective, efficient, safe,...
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