Health Insurance and Health Care Financing

• Health care Financing

Healthcare financing is one of the most important components to consider in health care planning. Healthcare financing refers to the role of a health system which involves mobilization, accumulation and allocation of monetary funds to cover citizen’s health needs either individually or as collectively ( Manyazewal, 2017) . Health care funding is concerned with making funding available and also establishes the right incentives so as everyone can effectively access both personal and public health care.

• Medical Insurance in US

In the U.S, healthcare system is technologically advanced and the amount of care is higher as compared to other countries in the world countries. Also, gross domestic product spent on healthcare is higher compared to other countries in the world. GDP stands for the market value of goods and services within a state. US spends more than 16.9% of the GDP on healthcare system, which is higher compared to other states ( Jung, & Tran, 2016) .

• Impacts of the increased Healthcare costs

• Increased healthcare cost can result into increased national debt

• Less money will be available to spend on other things

• The cost of products increases when the employers pay for the insurance covers

• Access to healthcare services may be hindered

• Healthcare Insurance (Medicaid and Medicare)

Healthcare funding is enhanced through healthcare insurance. Healthcare insurance refers to any program that aids in paying and covering medical expenses. The insurance can either be privately purchased, social insurance or purchased by welfare programs funded by the government ( Flores, & Vargas, 2017) . Insurance is enhanced through Medicaid or Medicare.

Medicaid

• This is federal and state program for people with low income. Medicaid offer benefits such as;

• Provides free or subsidized cost of care to adults with low income.

• One can confirm from the nearest Medicaid office to see if he/she is eligible such benefits.

• Application is through the Medicaid offices

Medicare

• This is a federal health insurance program for individuals who are 65 years and above, persons under 65 with disabilities, and any other persons with renal end-stage diseases.

• The program has four parts; part A concerned with hospital insurance, B concerned with medical insurance, C for MAPs and medical cost and part D which covers prescription medication.

• There is an international Medicaid coverage which is limited outside the United States.

References

Flores, R. D., & Vargas, R. (2017). Medicaid expansion and ethnoracial disparities in health insurance coverage.  Journal of Ethnic and Migration Studies ,  43 (12), 2055-2071.

Jung, J., & Tran, C. (2016). Market inefficiency, insurance mandate and welfare: US health care reform 2010.  Review of Economic Dynamics ,  20 , 132-159.

Manyazewal, T. (2017). Using the World Health Organization health system building blocks through survey of healthcare professionals to determine the performance of public healthcare facilities.  Archives of Public Health ,  75 (1), 50.