Health Economics Essay

1200 words - 5 pages

HISTORY OF HEALTH INSURNCE
I stopped for a moment to imagine an average Americana’s world without a health insurance, what will become of such individual when the need for healthcare beckons? How will such individual offset the outrageous bill of healthcare? Health insurance is used in America to describe any program that helps pay for medical bills through the following: privately purchased and social insurance or a social welfare program usually powered by the government. Simply put, health insurance is any form of insurance that provides protection by offsetting the actual costs of medical services.
Before the onset of federal government’s intervention on health insurance, it can be ...view middle of the document...

Then the advent of World War II in conjunction with the growth of labor movement and the federal tax code all bolstered the growth of employer sponsored coverage. During the World War II, America’s market was in shortage of labor worker with a relative increase in demands for goods, as such, to respond to this shortage, workers were attracted with fringe benefits in form of employer sponsored coverage. By the end of World War II, America’s health insurance saw an enormous growth of 23 percent insured Americans as compared to the 9 percent of the population having health insurance as at the eve of World War II.
To help lessen healthcare problem in the 30’s, a system was designed in the state of Dallas by Baylor Hospital which later became Blue Cross to help people pay for their healthcare bills. As a natural progression to sophistication in medicine, people patronized the hospital for healthcare while cost shoots up ambitiously. A special prepaid plan which serves to rival Blue Cross by providing another choice to people was formulated- Blue Shield. Later on both organizations merged to become the Blue Cross and Blue Shield. It can be said that Blue Cross and Blue Shield companies were the harbinger of health insurance in the United States.
Blue Cross and Blue shield enjoyed enormous success, this encouraged other profit based insurance companies to venture into the healthcare market. Erstwhile, Blue Cross and Blue Shield was a nonprofit based organization that charged all insurers the same premium, but the advent of these profit based insurance organizations changed the situation of things in the market. What did they do? They charged premiums based on epidemiological facts: Age, gender, status of health and preexisting health conditions. Doing this means the more healthy ones would be insured ignoring the less healthy individuals which equals more profit for the profit based insurance organizations. This generated a ripple effect which caused the Blue Cross and Blue Shield organization to follow their model.
Even with the advent of employer sponsored coverage, there were still some loop holes in health insurance, a considerable subsets of people were not benefitting from it- the impoverished, day to day laborer, those who had no job at all and importantly, retirees of age 65 usually lost their employer sponsored coverage. Thanks to the J.F. Kennedy administration that put a new song on the lips of people in dire need of health insurance. His administration initiated a government sponsored healthcare where the elderly were really considered. This marked the onset of Medicare and Medicaid- Providing healthcare for retirees, aged and the impoverished.
The concept of Medicare and Medicaid involves the federal government paying back physicians for taking care of the retirees, aged and the...

Other assignments on Health Economics

Mesoeconomic Theory Essay

331 words - 2 pages The concept I will illustrate through the lens of mesoeconomics for my two current events are competition. Mesoeconomics is the bridge between macro economics and microeconomics. The circular flow of the economy is influenced by mesoeconomics. Competitions for online banking customers are intense among top U.S. banks; because of increased unemployment, credit crisis and the overall poor health of the U.S. economy. Marc Trudeau states

Eco 365 Week 1 Essay

2157 words - 9 pages Economics Paper University of Phoenix ECO365 May 6, 2013 Economics is a tool that we use in our daily lives even if we don’t always realize it. As people we all have things that we want, and things that we need. This includes things like food, clothing, and shelter, but it is not limited to those things. In order to get those things, people have to spend money. The issue is that everything that people need and want costs money. More often

Why Medical Care For The Aging Needs Reforming

767 words - 4 pages ). Health care economics (1st ed.). Hoboken, NJ: Hon Wiley & Sons. Kavilanz, P. (2011, July 08). Health care jobs a bright spot for hiring. Retrieved from http://momey.cnn.com/2011/07/08/news/economy/healthcare_jobs/index.htm Why population aging matters. (2011, September 22). Retrieved from http://www.nia.nih.gov/NR/rdonlyres/9E91407E-CFE8-4903-9875-D5AA75BDID50/0/WPAM.pdf

Health Promotion

1152 words - 5 pages (Unknown, 2012). As stated by the World Health Organization, health promotion seeks to give an individual control over their health. In health promotion, the actions taken are not limited to just individuals, but also extends to the community, environment etc (Unknown, 2012). Prevention also involves taking control of the determinants of health like the community, economics, environment (Unknown, 2012). Every state, county, town, has its own

Child Advertising

1179 words - 5 pages they will be more likely to purchase that product when they become older. Schlosser, the Journal of Adolescent Health Care, and Health Economics give examples of the effects that are caused from child advertising. Personally, I believe it is smart for the companies and business to target children in their ads but it should be for the companies and businesses that are for children. Many companies have been targeting children in their commercials

Urgent Care Economics

1654 words - 7 pages Economics of an Urgent Care Center in a Market of Emergency Departments One of the contributors to the rising cost of Healthcare can be attributed to the over use of emergency departments (EDs) for non-emergency needs. In the greater Capitol/First/Beacon Hill area there are three major hospitals (Virginia Mason, Harborview, and Swedish) with emergency rooms and no urgent care centers with the exception of Group Health which is restricted to

Problems That Canada Face

390 words - 2 pages the smaller number of workers paying into the system. It is feared that the system will go broke because of fewer workers paying into the system. As people grow older, their need for medical services increases. Health care costs have increased for years, posing significant financial burdens for businesses in the United States, where most health care plans are employer-funded, and for the nationalized health care systems in Europe. Low population

Income, Risk, And Consumer Demand For Healthcare

2428 words - 10 pages insurance the individuals will feel that they are protecting their wealth, by reducing the risk of paying full cost for health services. Playing the lottery could bring the possibility to increase their wealth to fulfill their needs. We are talking about humans and even the risk averse individuals will often do things which increase the probability of loss which can be like playing a lottery ticket. If the risk of playing the lottery affects their wealth, they will be reluctant to take that risk. References Folland, Goodman, and Stano (2001).   The Economics of Health and Health Care Management, 7e. Upper Saddle River, New Jersey: Pearson Education, Inc.

Course Project Quality Improvement In Healthcare

4236 words - 17 pages patients undergoing treatment in the hospital. A suitable strategy in this regard can assist the hospitals in managing patient care and safety that would not create any risk on their financial liability. Therefore, this is the overall scope and evaluation of the first scenario (Finkelstein, 2007). Risk Scenario Related to the Physical Plant Health economics is widely understood to encompass the study of the demand and supply for medical

Educational Externalities-Eco405

544 words - 3 pages Educational Externalities In economics, an externality, or transaction spill over is a cost or benefit that is not transmitted through prices. This spillover to others is called a positive externality in consumption, since people other than the direct consumer of the item find their well-being enhanced by the direct consumer’s use of it. Education is a good example of a positive externality to acquire educational benefits to the individual and

Management

327 words - 2 pages Chapter 8 Moral Principle 5: Option for the Bottom of the Pyramid 69. Is poverty a global issue? Poverty is a human condition of having insufficient resources or income. In its most extreme form, poverty is a lack of basic human needs, such as adequate and nutritious food, clothing, housing, clean water, and health services. 70. How poor are those in the bottom of the pyramid? Nearly three billion human beings live on less than two

Similar Documents

Health Care Economics Essay

1014 words - 5 pages Terms Comparison Paper HCS 552 May 25, 2015 Terms Comparison Paper According to the American Economic Association (2011) economics studies how people make choices when they want to utilize resources. This fundamental process links economics and health care together because health care professionals use economic principles in their everyday professional behaviors. Health care organizations do their best to use the same concept of

Measuring Health Economics Essay

536 words - 3 pages : |Measuring Economic Health | Economic health can be comprehended by knowing the significance of gross domestic products, fiscal policies, the effect of fiscal policies on the economy, and how the modifications in government spending and taxes influence the market assembly of employment. GDP to Measure Business Cycle In economics the term business cycle is

Identify The Three Major Tasks Of Economics And Discuss Why They Are Important?

280 words - 2 pages according. Find other ways to distributing scarce resources and achieving desired outcomes. To create a natural process and the proper funds for any health care service that produced the desired benefits. Reference Folland Goodman Steno, The Economics of health and health Care, 5th Edition The lecture for this week lesson

Mba Matrix Essay

258 words - 2 pages . In addition to communication, thinking globally, which would require me to take courses such as Business Economics, Managerial Accounting and Operational Management, at minimum, would assist me in gaining better knowledge on how outside market, government and regulatory environments influence internal strategies for my organization. As a quality and a process improvement professional in a health care non-for-profit organization, I strive toward