The Cost of Health Care
Additional resources I have to use 5 total out of ones that I have provided as an attachment and some listed below
- Required Resources
Media
- Video: Laureate Education (Executive Producer). (2009). The context of healthcare delivery: Health care financing. Baltimore: Author.
- Note: The approximate length of this media piece is 14 minutes.
In this media program, the financing status of the U.S. health care system is discussed. Both the structure of funding and the current economic state of the health care system are emphasized.
The Cost of Health Care - due by Day 7 of Week Two
Choose one of the two topics below:
- Discuss the issue of uncompensated care (the uninsured) in the U.S. and its impact on the health care system, the cost of care, and on health. Discuss the history of the trend, describe the extent of uninsured care, and the current status of this problem. Include in your discussion what you think the role of nursing needs to be in relation to health care of the uninsured.
- Discuss the issue of health care cost inflation. Describe the forces influencing the increase in health care costs. Select one strategy currently used by nursing, or that could be used by nursing, to control costs and discuss why you think it would be effective.
Write a 2- to 3-page paper on one of the above topics using the following guidelines and evaluation criteria. Use a minimum of five references from the professional nursing literature in the assigned course readings and other references in the Walden Library. If they are relevant, you may use one or two professional web sites in addition to the literature references.
Begin the paper with a brief paragraph that provides an overview of the assignment and its purpose. There is no separate heading for this paragraph; the heading is the same as the title of the paper. This will be about 2-3 sentences. The last sentence in this paragraph is a sentence that begins "The purpose of this paper is to ¨. This paragraph is worth 20 points.
Use the headings below for each option for the rest of the paper.
Option A:
Uncompensated care in the U.S. - 40 points
Discuss the history of the trend, the extent of uninsured care, and the current status of this problem.
Impact of uncompensated care - 40 points
Discuss the impact of caring for the uninsured on the health care system, the cost of care, and on health.
Nursing and care for the uninsured - 40 points
Discuss at least two strategies nursing could use to provide care or influence the provision of care for the uninsured. Describe the reasons why you think these strategies would be effective.
Summary - 10 point
Provide a one-paragraph summary of the main points in the paper.
Option B:
Health care cost inflation - 20 points
Discuss the history of inflation of health care costs and the current status of this problem.
Factors influencing health care cost inflation - 40 points
Discuss at least two factors influencing the increase in health care costs. Describe nursing’s role in increasing health care costs.
Nursing and reducing health care costs - 60 points
Discuss at least two strategies nursing could use to help in the effort to reduce health care cost inflation. Describe the reasons why you think these strategies would be effective.
Summary - 10 point
Provide a one-paragraph summary of the main points in the paper.
Format/style
Proofread your paper as described in the tips for success in this course and correct any typos, grammar, spelling, punctuation, syntax, or APA format errors before submitting your paper in the Dropbox. You can have up to 30 points deducted from your grade for this assignment for these types of errors, or for not using at least the minimum number of required professional literature references..
Name:
Institution:
Date:
Health Care Cost Inflation
In a few months, the United States will have an inaugural national discussion regarding health care in 15 years. While the talk will include the means of increasing the availability of medical insurance and making the American health care system safer, better, and efficient, minimum discussions are expected on measures to arrest the ever growing medical costs (Brown, 2014). This paper provides a discussion on health care costs inflation and describes the forces that are influencing the rise in health care costs. In addition, the paper provides a strategy used by nurses to control the inflation including a discussion of an effective method to curb the inflation.
Forces Influencing Increase in Costs
The increase in health care cost in the United States is attributed to several factors. Today, the nation’s expenditure on health care services is the greatest globally expenditure and exceeds $2.6 trillion. This about 18% of its GDP and in most of the year’s spending has risen faster than inflation and the overall economy. This can be attributed to more than one factor (Bipartisan Policy Center, 2012).
Figure 1: Percentage of U.S National Health Expenditure in GDP (1960-2021)
Hospital and Insurer Consolidation and Premiums
In the last 20 years, hospital and health insurance markets have become significantly concentrated due to the prevalent horizontal mergers and acquisitions that are imparting more market power to a certain firm that remains in the market. At the same time, premiums on health insurance also have rapidly risen and outpaced inflation on a yearly basis since 1997. In 2008, approximately 33 cents of a premium dollar were paid out to hospitals. The negotiated prices between hospitals and insurers are a central determinant of the overall premiums. Rise in these prices in the health care market, depicts the market concentration of hospital versus insurers and the negotiating clout by the must have hospitals. With the mergers, fewer hospitals and/or companies gain control of the premium prices due to the monopolistic nature of the market; therefore, they increase premium rates which consequently raise the health care costs (Frakt, 2010).
Aging Population
With the current baby boom in the United States, a significant increase in the aging population (> 65 years) exists. This significantly impacts the federal health care budget. The individual total health care costs do not abruptly increase. However, the federal government costs increase as Medicare becomes the primary insurer (Reinhardt, 2008).
New Technology
Technology is among the major drivers of health care costs. Advances in technology are providing breakthroughs in life saving and the improvement of care, however, these come with significant costs. It is estimated that the medical technology market is valued at $150 - $200 billion and comprises of a broad range of innovations (AWHP, 2005). Such technology reduces the unit costs of health care services but at the same time increases the health care costs. For example, GAO report findings conclude that utilizing technological advances offset any potential savings and in other instances offers marginal improvements in care but with higher price tags (AWHP, 2005).
Prescription Drugs
There is an increase in the cost, frequency of use, and demand for prescription drugs. These directly affect the costs of public and private insurance coverage. In the last ten years, national prescription drugs spending by both public and private payers has tripled with expenditures on drugs rising from $40 billion to 141 billion between 1991 and 2001. Private insurance pays the largest portion of the risi...