It has for a long time now been known that the healthcare system in the US is broken. From the lack of transparency to lack of coordination and the exorbitant costs that both the patient and insurers undergo to settle medical bills. The biggest concern, however, is the burden that healthcare costs bring on to the US economy. According to the Agency for Healthcare Research and Quality, the US spends an approximate 27 trillion dollars on medical care alone, which entails that the average American spends $ 8000 a year on healthcare (Haseltine, 2013). Several competing remedies have been proposed to avert this situation but only two solutions seems promising.
To begin with, differentiated service is an approach used by Singapore to curb medical expenses for those who cannot afford it. That is there are five levels of service all with more so same procedures and doctors (Haseltine, 2013). However, there are different variations in the amenities provided. For example, persons in the lowest class are placed in multi-patient wards. Whereas, those in the highest category are given completely private rooms. Although there exis certain hospitals that provide such amenities, it is not enough. Thereby if such a policy were to be implemented it would result in lower healthcare costs for patients with little income while offering world-class service to those who can afford.
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Moreover, another approach would be to stimulate the transition from hospitals to community care for elderly individuals. In 2010, reports from the U.S. Centers for Medicare and Medicaid Services showed that persons aged above 65 spent an average of $18,424 per person which is around 34 % of the entire healthcare costs (De Nardi et al, 2015). Therefore, it would be beneficial to maximize the quality of community health care services. This may be done through improvement in the technology and professionalism of staff employed in such facilities. Leatherby (2016) suggests that this transition would be the most suitable way to curb the cost of healthcare problems as it is estimated that by 2050 there will be an estimated 83.7 million people aged above 65 and with extreme healthcare costs.
In conclusion, Differentiated service approach is preferred because it has helped Singapore in safeguarding the poor and addressing possible market failures in health funding. The outcomes have been promising with low costs, exceptional health results and an entirely consumer choice of health services. The government especially, the federal government has a vital role to play in the improvement of healthcare in the country. Government’s involvement in healthcare often results in a huge burden on the taxpayers (Pear, 2015). Therefore, it would be prudent to encourage privatization of healthcare while at the same time formulating complementary policies that will undoubtedly offer the best quality healthcare at the minimum cost for every American.
References
Haseltine, W. (2013). How to Control America's Health Care Costs. Retrieved January 09, 2017, from http://www.thefiscaltimes.com/Columns/2013/06/17/How-to-Control-Americas-Health-Care-Costs.
Haseltine, W. (2013). How to Control America's Health Care Costs. Retrieved January 09, 2017, from http://www.thefiscaltimes.com/Columns/2013/06/17/How-to-Control-Americas-Health-Care-Costs.
Leatherby, L. (2016). Medical spending among the U.S. elderly. Retrieved January 09, 2017, from https://journalistsresource.org/studies/government/health-care/elderly-medical-spending-medicare.
Nardi, M. D., French, E., Jones, J. B., & Mccauley, J. (2015). Medical Spending of the U.S. Elderly. National Bureau of Economic Research Working. doi:10.3386/w21270.
