Single payer healthcare is not a new concept – it may look differently to different people when discussed. When single payer healthcare system is optionally proposed to private healthcare insurance it’s said to be “socialized medicine” or it hasn’t worked in some areas, But a more bare look is required today to seriously solve healthcare costs.
In other words, the main goal intent should not be a support of the status to say or should health insurers be dismissed for their
relative increase in prices above healthcare provider costs, but
rather a general effort to study those options which may better serve healthcare needs to be undertaken.
Analyzing The Fundamental Purpose Of Private Healthcare Insurance And Its Cost
The fundamental purpose of private healthcare insurance is to provide insurance services whereby the transfer of risk is universally accepted. Briefly, the probable healthcare cost of an individual or a group under several condition is actuarilly determined, this is merged with the right rate of return for accepting risk, the cost of operations and a return on that amount must be added to end-up at “premium” for the individual/group for a particular point in time. The
problem here is that the costs for risk, operations and returns are
add-ons to provider cost. Indeed if Americans were able to pay their healthcare cost directly to their healthcare providers 2004, then about $70billion will be saved. But additional costs must be incurred by the third party payer system, though payer net expenditures can be reduced to claims processing operational costs.
Hence, lot of organization moving to self-insured healthcare benefit structure with many discovery that their claim processing function can be sold to self insured organization which becomes revenue and thereby reducing healthcare cost.
Single – Payer Healthcare Options
Proposals (state & national legislature) had been put forward with the aim of reducing health care cost and dealing with vast of Americans who are uninsured or under-insured. These measures need to be discussed and analyzed; however, it is instructive to briefly review the success and failure of other
implementation healthcare system specifically those of Canada and the U.K.
Is Single – Payer Healthcare System Available And Beneficial Option?
One of the firm relative to California measures, is the lewing group, they have undertaken healthcare consultancy and analysis for 10years, if their conclusion on healthcare is correct then the answer is likely to be “yes”. Hence, the state would be more attractive for individual seeking cheap healthcare. This will motivate other states to adopt these healthcare measures in order to maintain good tax-base. However, in this discussion single healthcare cannot be conclusive over private
healthcare insurance, demand for healthcare is increasing and if
single payer healthcare is implemented that would benefit lot of
America without healthcare and individuals with high cost private
healthcare insurance. If the demand for healthcare increases by 20%,
the providers would be beneficiary and increased provider supply, utilization would lead to demand for healthcare equipment and robust services from vendors. Other benefits of single payer healthcare is it would help in establishing nice healthcare information network, and other expensive healthcare providers that are exerting high prices in the market will lose ground.
This subject on single payer healthcare needs to be carefully and
openly be discussed and analyzed. Those strategies that might
significantly reduce costs while improving general healthcare need to be aggressively studied.