Health Insurance - Research Paper Example

This calls for government intervention in health insurance costs to yield lower rates and better services. This paper discusses the reasons why government should be directly involved in health insurance. A recent survey by the Commonwealth Fund on health involving industrialised nations rated America in the lowest rank. According to Davis, Schoen, and Stremikis, “In July 2008, the Commission released the second National Scorecard on U.S. Health System Performance, which ranked the nation’s performance on 37 indicators, 11 of which were based on international comparisons” (Davis, Schoen, and Stremikis).

The parameters used in this survey include equality of health outcomes across its population, fairness of financial contributions, and patient responsiveness. The current health insurance system is financed by employers as a benefit to their employees. Low and middle-income earners do not get these benefits from employers and since they cannot afford from their mean salaries, they remain uninsured. Government involvement in health insurance will see to it that all its citizens can access it. Further analysis of the US health insurance costs problem reveals that most of the funds contributed by companies and individuals get into the hands of the administrators.

This means that a lesser percentage than expected of these contributions go into actual health care of these individuals. This leaves the individuals who participate in this programme paying very high costs that do not match up the care given. Government involvement in a health insurance programme will allow it to have an added advantage to bargain better prices of drugs and services. The administration costs will no longer be there and reduced drug costs will make the prices of insurance to go down.

In addition, single payer systems through government involvement will enable the government to hold down costs as it covers the entire population. Canada is a very good example of a state that uses the single payer system efficiently. According to Segal’s Health Care Reform Journal, “In 2006, the U.S. spent $6,714 per capita” without covering all its citizens, “while Canada … spent $3,678” with universal coverage” (Clemmitt). America should learn from such states and involve the government.

Government involvement in health care insurance will make it possible to track all the activities in the health system. The government will have no choice, therefore, than to give the best medical care in the world. To safeguard financial stability of this system with the government in it, citizens must enrol to prevent issues of people who do not sign up until they are sick. Some costs go up because of advanced technology that prolongs the lives of individuals who have terminal illnesses. For example, cancer patients live for six months longer with the help of some machines.

According to Callahan as quoted in Health Care Reform Journal, “We will have to learn better how to live with that reality, to understand that limits to health care are necessary. We cannot afford endlessly expensive progress. Concretely, that means we will have to accept rationing” (Clemmitt). Since most insurers are out to make profits rather than to offer best medical care, government involvement will change this. Buyers will have another choice of insurance plan, which is government run and this will keep off non-genuine private insurers. However,