This crisis is a fact and statistics are good enough to prove its validity. USA spends twice more on its annual healthcare then does 19 of the developed countries in North America and Europe. The percentage of GDP allotted to health seems to be at a rise since 1997 when it reached to 15.7% in the year 2005, and as projected by the agencies of Medicare and Mediaid this percentage would further increase in the next 10 years to a figure of almost 17.5% of the GDP. Yet 15.6% of the American population is still uninsured. (services, april,2005) For a country that has the highest expenditure rates on healthcare, it is quite shocking that the public gets to face the crisis of high rising prices for healthcare. The two major problems faced by the healthcare system of USA include rapid increase in the expenditures made on health and disabilities and high costs for administration of health care issues which account for at least 26% of the total money in healthcare. The reasons for the rising costs are many including the dependence on the high costs of new medical technologies, drugs and tests, the rising population of the elderly, the rising frequencies of road traffic accidence and criminal activities requiring medical attention, intensive work hours and rising pays of health care professionals and doctors, high awareness of medical problems requiring immediate and most of the times unnecessary medical attention, untoward issues like fraud and issues causing waste of administrative money, the internal situation and inflation rates of the health care system and many more reasons. TYPES OF MEDICAL COVERAGE Broadly speaking, health insurance can be of two types. First is the group health insurance in which an employee and his immediate family are covered by an insurance company that is either partially or mostly paid by the employer. This type of insurance comprises as high as 90% of the total insurance issued by the insurance companies. (DeNavas-Walt, 2008) Sometimes this type of insurance may not provide the necessary protection that an individual requires; in that case an additional aid with the help of individual insurance can be purchased. Second type is the individual insurance plan. This type of plan, as the name suggests, is individually tailored to anyone’s needs. This type of insurance is usually acquired when the group insurance is not enough or requires certain addition. In that case one can choose their own preference of insurance company and select as much coverage as they require. This means an extensive browsing of the options available in the market as the mark ups and premiums on different plans by different companies vary to a great extent. The group and individual insurance plans provide different types of coverage. These policies further include the following types of coverage: 1) MAJOR MEDICAL EXPENSE INSURANCE Major medical expense insurance is a type of insurance which covers the excess medical expenses incurred due to sudden accidents, injuries or severe illnesses. It is usually in relation to the basic individual or group insurance that would provide the baseline insurance for the regular medical expenses. This type of insurance only covers the excess and high bills that are often faced after an accidental situation or a severe illness. Usually the amount that can be paid through this type of insurance is quite high which requires the premium to be covered by the individual through various ways.
HEALTH DISABILITY AND LONG TERM CARE INSURANCE Unexpected and untoward expenses plunged into your life due to any disabling condition affecting your health, may cause a strong blow to your finances. The ever rising cost of health care demands that everyone should have some form of insurance to cover for these untoward expenses…
The percentage of the populace made up of aged persons in the United States is anticipated to increase from 13 to 20 percent in the next few decades. The number of Americans aged 65 years and above will rise by 35% to 71 million, by 2030, encompassing of 20% of the US population.
They are cheaper than individual long term insurance. They may be offered by employers and are tax-free to employees and tax deductible for employers who bear the premium expenses. Group long term insurance care started in the 1980s. Long term insurance cover to individuals was characterized by high premiums and limited benefits therefore many companies had to think of group long term insurance as an employee benefit (Wiener and Illston 66).
Managed Care Introduction Managed care is an arrangement meant to meet the healthcare needs of a certain group or groups of people. These include workers, rural residents, and family in the mining, lumber and railroad businesses. In these groups, those that enroll pay a set fee to physicians who in turn provide medical services under certain terms.
These care packages as being used in the pre treatment and treatment of phases of children with long term conditions. With an analysis weighing the pros and cons of the care packages, it helps understand the risk- benefit ratio of incorporating such care practices into our own health care system
Although long-term care is not limited to the elderly, as long-term care is also needed by anyone who need assistance in every day living as a consequence of disability regardless of age - disability happens more often in those who are older, specifically if they reach the age of 65 and up (Johnson, Toohey and Wiener 1).
Mass transportation vehicles such as ships and trains were originally provided by the private sector. Police forces, detectives, and arbitrators were formerly provided by private entities. Even the caring for the sick, the poor, the elderly, orphans and widows has been traditionally the concern of private charity organizations1.
The author states that the expense of providing healthcare services is spraining government and family budgets, as costs soar due to rising pharmaceutical drug prices, provider services and inflation. Long-term care involves a wide range of services for people who require caregiving support on a routine basis.
Admittedly, people today are really concerned about their health risks. Despite the recent federal healthcare reform, drug costs are mounting and this situation imposes huge burden on ordinary people, particularly uninsured individuals. In
Long Term Care insurance policies help many individuals to receive the expensive nursing homes and assisted living facilities. Long term insurance solves one of the biggest fears of Americans to spend all their life savings on expensive nursing costs and medical bills. Insurance is a way through which Americans can cover their expenses.