Health Care Expenditure Essay

1455 words - 6 pages

Health care cost in the United States is expensive, and it has increased each year without fail until recently. There are a few contributing factors to the health care spending growth; one is the number of individuals who are in need of health insurance and medical care, and the other is the technology changes. Technology is a continuous change, and this will always be a factor in health care spending. For the individuals who were uninsured and could not obtain insurance, they have now been given the opportunity because of the health care reform; those individuals can now enroll in affordable coverage through the health insurance exchange. By providing more individuals with access to ...view middle of the document...

Private insurance companies and Medicare experienced a slower progressive growth over the last few years and for Medicaid the spending increased in relation to the latest occurrences; however they maintained a small and balanced level. Another area that experienced a relatively slow growth was in some of the major areas of health care services and goods such as, prescribed medication cost, hospital services and physician and clinical services. The amount spent on prescription medications did increase however it continued to be lower than previous years. Hospital and Physician expenses decreased last year compared to 2011 and 2012 spending. The new reform is making a stride to decrease the health care spending cost and lower the deficit, as each year goes by there should be significant savings in Medicare or other government or state funded program. The reports obtained from the Centers for Medicare & Medicaid Services (CMS), do not contain information for the current year, but from the estimated projections the health care cost are not rising, they are experiencing small growths (Furman & Fiedler, 2014). 
Additions and Cut-Backs
The Affordable Care Act is an important factor in the slow increase in health care spending, by giving the providers and hospitals incentives to provide better quality care, we are seeing a reduction in repeat visits from patients. The reforms established for Medicare reduced the unnecessary payments to providers and those private companies giving billions in savings. Other conservation measures that are offered by the health care reform is the additional preventative care benefits that are now free to those insured by Medicare, the savings offered to those in the “donut hole” and the reimbursement checks for prescription medications and more Medicare fraud protection. Through the modernization of our health care system and the reform, there are now multiple regulations in place to provide lasting achievements and considerable savings for those covered by Medicare and the taxpayers. The increased fraud protection that is now in place because of the Affordable Care Act has saved the federal government billions. In addition to the other cost saving measures, the Affordable Care Act put in effect the reduction of paying a higher fee to the private insurance companies that are contracted with Medicare over what it would cost them to pay for someone in the standard plan. Previous to this new law, the private insurers were paid more per patient, and these extra costs were placed on the recipients of the traditional plan. By eliminating the extra payments, the program will see the approximate savings of "$68 billion".  The reduction of the excess payments to the private insurers was necessary to reduce the health care cost and achieve long-term success (Centers for Medicare and Medicaid Services, 2012).
Future Needs for Cost Savings
Although the provisions that have been established by the Affordable Care Act...

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