The Issue in American Healthcare System and the two competing Solutions
The current issue in the American healthcare system is the high cost of healthcare. The two competing solutions are regulation of insurance costs and reduction of taxes. The government is proposing interstate insurance policy sales as the approach to enhancing competition among insurance firms, to reduce the insurance premiums. This would hence reduce the cost of healthcare (Wilensky, 2017). Another solution is the reduction in taxes. Adjust the Affordable Care Act taxes on prescription and over the counter drugs, health insurance premiums, and medical equipment. Also, elimination of 3.8% tax on investment income and extra 0.9% on payroll tax for persons making more than $200,000 and $250,000 (couple) (Wilensky, 2017). If taxes a reduced, the effect would be felt on healthcare costs. The most preferred between the two solutions is a reduction of the taxes on insurance policies, prescription drugs, and medical devices. The 3.8% tax on investment, as well as the extra 0.9% on the payroll for people earning more than $200,000 and $250,000 for couples, should be eliminated (Wilensky, 2017).
Responsibilities of Federal, State, and Local Governments
Federal Government
Congress initiates policy change that allows the federal government to negotiate drug and medical equipment prices. Consumers in other industrialized nations such as Britain and Canada pay low prices because the government negotiates the prices of such commodities. The U.S suffers high costs because negotiations are done between the insurance companies and hospitals. Typically, hospitals charge exorbitant prices, and this compels insurance companies to transfer the costs to the policyholders. However, if the federal government is left to negotiate for drugs and pay the hospitals, costs will reduce significantly. Currently, negotiations are only limited to Medicare (Mcwhinney, 2018). Drug manufacturers, the insurance companies, and hospitals are most likely to oppose the move, and that implies that they will continue charging high prices, which will make healthcare even more expensive (Tolbert, 2018).
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State Government
State governments should compel hospitals to post prices publicly for the most common diagnoses and procedures. Traditionally, pricing in healthcare centers has never been transparent and is rarely analogous to the quality. Consumers, on the other hand, are not aware that healthcare costs vary widely across the nation and even in neighboring health centers. If the prices are displayed publicly, customers will be in a position to find affordable places of care. Australia and France are utilizing this method (Tolbert, 2018). For instance, a C-section may cost $8,000 in one hospital and $12,000 in another yet they are located in the same metropolitan area; so customers will be in a position to compare prices. This will reduce the costs and quality will improve as well.
Local Government
The healthcare staff at the local level employs health promotion techniques designed to assist people to lead healthy lifestyles. Besides eating healthy foods, consumers will learn to undertake frequent medical checkups to ensure chronic diseases are diagnosed at early stages. Prevention mechanisms will reduce stress on the already strained healthcare system ( Kumar & Preetha, 2012).
Responsibilities of the three Branches of the Federal Government
Congress is tasked to design laws that focus on reducing healthcare costs, for instance, reduce taxes on drugs and insurance policies. The executive is responsible for proposing laws that will aid in the reduction of healthcare costs and ensure their implementation once approved. Lastly, the judiciary is obligated by the constitution to evaluate the laws and ensure that they are in line with the constitution and that no one is suppressed or exploited by the newly established regulations (Tolbert, 2018).
References
Kumar, S., & Preetha, G. S. (2012). Health promotion: An effective tool for global health. Indian journal of community medicine: official publication of Indian Association of Preventive & Social Medicine , 37 (1), 5.
Tolbert, A. (2018, March 11). Three Ways Congress Could Reduce Health Care Costs in the U.S. Tennessean. Retrieved from https://www.tennessean.com/story/opinion/contributors/2018/03/11/three-ways-congress-could-reduce-health-care-costs-u-s/411391002/
Mcwhinney, J. (2018, October 11). What's the Difference Between Medicare and Medicaid? Investopedia. Retreived from https://www.investopedia.com/articles/pf/07/medicare-vs-medicaid.asp
Wilensky, G. (2017). The Economics and Politics of the American Health Care Act. Milbank Quarterly , 95(3), 462–465. https://doi.org/10.1111/1468-0009.12268
