Thursday, November 21, 2019

Health Care Financing Models Name Affiliation Date

Introduction
Health care financing offers hospitals a chance to address its expenses.
The existence of government-based, employer-sponsored and out-of-pocket forms of payment has improved the situation.
An analysis of the performance of these health care financing initiatives is necessary for improvement purposes.
This presentation evaluates the influence of the health care financing models and their effectiveness.
Comparison of Employee-Based, Government-based, and Individual-Based Health Care Financing
Under the Affordable Care Act, employer mandate states that organizations with over 50 employees should offer health insurance (Norris, 2019).
Ones that do not offer the appropriate insurances programs are penalized (Graves & Mishra, 2016).
Employee-Based Health Insurance
The employer-sponsored health insurance programs also benefit a few selected dependents that are family members of the employee (Graves & Mishra, 2016).
The small-group coverage has offered the employees attractive premiums that can cater for the health expenses (Norris, 2019).
Comparison of Employee-Based, Government-based, and Individual-Based Health Care Financing Cont’d
Medicaid, Medicare and Children’s Health Insurance Program are the most common programs (Kominski, Nonzee, & Sorensen, 2017)
Pays for hospitalization, lab tests, diagnosis, nursing facility, family planning, & pediatric (Fahle, McGarry, & Skinner, 2016).
Covered services together with cost-sharing features.
Government-Based Health Insurance
Medicaid is a state and federal program while Medicare is only a federal program (Nikpay, Freedman, Levy, & Buchmueller, 2017).
Medicare targets patients over 65 years, while the ones that are under 65 years should have disabilities (Nikpay et al., 2017).
Medicaid focuses on the low-income earners (Nikpay et al., 2017).
Comparison of Employee-Based, Government-based, and Individual-Based Health Care Financing Cont’d
Focuses on over-the-counter medications and prescription drugs (Fahle et al., 2016).
At times, flexible spending accounts and health saving accounts might be required (Smith, 2017).
Individual-Based (Out-of-Pocket) Health Expenditures
The underinsured and uninsured consist of the large population.
Cost-sharing has made it easier for even government-based or employee-based beneficiaries to use out-of-pocket expenditures.
Key Economic Goals
The economic goal of public insurance is to focus on ensuring that more people can get insurance coverage.
In 2015, around 37.1% of Americans were under the public health insurance plans (The Commonwealth Fund, 2019).
Population Covered
Private health insurance helps people get quality treatment for all the dependents according to their existing household budgets.
In 2013, 54% of Americans that are below the age of 65 were receiving private health coverage under their employers (Graves & Mishra, 2016).
Key Economic Goals Cont’d
The ACA insists that the private and public health insurance plans should cover the 10 essential services.
Emergency, ambulatory patient intervention, maternity, hospitalization, substance abuse treatment, mental health, rehabilitation, lab tests, prescription medications, pediatric, preventive and wellness, dental and vision, and the management of chronic diseases for private and public insurance plans (The Commonwealth Fund, 2019).
Key Economic Goals Cont’d
Cost-sharing and out-of-pocket spending usually occur regardless of the insurance coverage.
Hospitals can enjoy the benefits of case mix systems that nurture efficiency.
Services Included Cont’d
The economic goal focuses on offering a wide range of services at affordable prices.
Public health insurance assists the low-income earners get quality treatment.
Private health insurance promotes extensive coverage of all dependants on lower premium rates.
Key Economic Goals Cont’d
Public health insurance relies on taxes, premium subsidies and federal revenues (The Commonwealth Fund, 2019).
The economic goal is to lower the number of uninsured people and reduce disparities in the provision of healthcare.
Financing Arrangements
Private health insurance depend on expenses shared between the employers and the beneficiaries (The Commonwealth Fund, 2019).
The approach will make the health insurance plans a bit affordable for employees and their dependants.
Key Economic Goals Cont’d
In private and public insurance plans, the bundled payments should focus on the entire cycle of care involving a patient or a condition.
Even the incorporation of case mix funding can prioritize efficiency in hospitals (Hopfe et al., 2015).
Reimbursement Strategies
The swift reimbursement systems should prioritize patients’ interests (Hopfe et al., 2015).
Patients will get quality care due to the presence of enough funds to address their medical needs.
Key Economic Goals Cont’d
Heterogeneity in the demand for the health insurance has lowered the monopoly (Glazer & McGuire, 2017).
Health status and the taste in Gold or Silver plans can make it easier for clients to get numerous choices.
Competition Policies
Discriminatory premiums will make patients to shift to affordable health insurance plans (Glazer & McGuire, 2017).
Competition policies reduce the aggressive marketing and unfair initiatives among insurers.
Competition have resulted in lower premiums and affordable insurance plans.
the key effects of labor market, insurance market, and competitive market factors on health care delivery requirements
Labor Market
People look at employment as a way of getting private health insurance (Duggan et al., 2017).
Others believe that unemployment helps them qualify for public health insurance.
Employees around the retirement age might pay higher premiums (Duggan et al., 2017).
Competitive Market
Consumer choice is a priority due to finding an insurance plan that fits the household budget and additional out-of-pocket expenditures (Duggan et al., 2017).
Health reforms have made the health insurance plans affordable for low-income earners (Kominski et al., 2017).
Insurance Market
The ACA has reduced the number of uninsured from 49 to 29 million people, but others still cannot afford the plans (Nikpay et al., 2017).
Age and income are essential in securing Medicaid and Medicare plans (Nikpay et al., 2017).
Employer-sponsored plans supports around a half of non-elderly Americans (Graves & Mishra, 2016).
changes occurring in the economy or concerning labor and regulatory factors that must be considered in the future
Health regulations might increase the compliance costs for different organizations.
Technological advancement might cause loss of jobs and more people seeking Medicaid.
Reforms will result in improved working conditions and affordable health insurance plans (Kominski et al., 2017).
More immigrants seeking jobs will result in a higher underserved and uninsured populations.
the key national trends that you believe currently affect competition and pricing initiatives
Increased competition has resulted in reduced treatment expenses in hospitals (Schmitt, 2018).
Reduced performance has led to mergers that are linked with improved quality (Schmitt, 2018).
Higher prices for the prescription drugs can increase the out-of-pocket expenditures (Fahle et al., 2016).
Technological advancement will result in higher prices, but accurate tests and quality treatment.
the main quality indicators that typically affect health insurance pricing at the local level
Increased competition has resulted in reduced treatment expenses in hospitals (Schmitt, 2018).
Reduced performance has led to mergers that are linked with improved quality (Schmitt, 2018).
Higher prices for the prescription drugs can increase the out-of-pocket expenditures (Fahle et al., 2016).
Technological advancement will result in higher prices, but accurate tests and quality treatment.
Conclusion
In conclusion, the discussion highlights the convergence of economic models and insurance plans.
Public health insurance assists low-income earners to get coverage.
Private health insurance helps employees and households secure quality treatment at affordable rates.
Competitiveness and reforms have resulted in lower premium rates and reduced treatment expenses.
references
Duggan, M., Goda, G. S., & Jackson, E. (2017). The effects of the Affordable Care Act on health insurance coverage and labor market outcomes (No. w23607). National Bureau of Economic Research.
Fahle, S., McGarry, K., & Skinner, J. (2016). Out‐of‐pocket medical expenditures in the United States: evidence from the Health and Retirement Study. Fiscal studies, 37(3-4), 785-819.
Glazer, J., & McGuire, T. G. (2017). Gold and silver health plans: Accommodating demand heterogeneity in managed competition. In Models of Health Plan Payment and Quality Reporting (pp. 135-160).
Graves, J. A., & Mishra, P. (2016). The evolving dynamics of employer-sponsored health insurance: Implications for workers, employers, and the Affordable Care Act. The Milbank Quarterly, 94(4), 736–767. doi:10.1111/1468-0009.12229
references
Hopfe, M., Stucki, G., Marshall, R., Twomey, C. D., Ustun, T. B., & Prodinger, B. (2015). Capturing patients’ needs in case mix: A systematic literature review on the value of adding functioning information in reimbursement systems. BMC health services research, 16(1), 40.
Kominski, G. F., Nonzee, N. J., & Sorensen, A. (2017). The Affordable Care Act's impacts on access to insurance and health care for low-income populations. Annual Review of Public Health, 38, 489–505. doi:10.1146/annurev-publhealth-031816-044555
Nikpay, S., Freedman, S., Levy, H., & Buchmueller, T. (2017). Effect of the Affordable Care Act Medicaid expansion on emergency department visits: Evidence from state-level emergency department databases. Annals of Emergency Medicine, 70(2), 215-225.
references
Norris, L. (2019). Are you ready to offer small-group health insurance? Retrieved from https://www.healthinsurance.org/small-group-health-insurance/
Schmitt, M. (2018). Multimarket contact in the hospital industry. American Economic Journal: Economic Policy, 10(3), 361-87.
Smith, S. R. (2017). High deductible health plans and health savings accounts: Potential problems for taxpayers, opportunities for policy makers. American Journal of Management, 17(1).
The Commonwealth Fund. (2019). The U.S. health care system. Retrieved from https://international.commonwealthfund.org/countries/united_states/

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