Impact ofUuninsured Population - Essay Example

Health premiums alone rose threefold over average American incomes during the period 2000 - 04. This was largely the cause of 'under' insurance. A serious concern with Americans today is the possible fall out of being ill or injured in such circumstances. Most of the increase in the uninsured is due to an increase in the adult population to over 8 million equaled by a rise in the uninsured population to about 6 and a half million. About 4 million of this segment is below 200 percent of the poverty level.

There are increases in uninsured even among the high income bracket of the population. Moreover, the shift in employment patterns suggests a large number veering toward employment in small size firms or self employment. Major figures for the uninsured or under insured are seen in this segment and most likely the trend will continue. The decline in employer sponsored health coverage will continue and costs of health insurance are far in excess of earnings and will continue to be so. Government intervention through public sponsored initiatives like tax credits or health programs is sure to be hampered by large budget deficits hampering state initiatives.

In some states the growth in health care costs even outpaces state incomes. What are the implications in all this, fo. If the costs of health coverage are now being passed on to the individual, how do we widen the net to protect the underinsured and prevent the uninsured from drifting off into total hopelessnessSuggested below are three initiatives can start and manage to face the risks from the uninsured population turning its back on us: Profit balanced with growthProduct MixRe-organize Structure (King, 2006)Profit balanced with growth drives the BusinessThe issue - Economies of scale exist in the health care management industry but do not enable low premiums and ensure growth.

Promotion of growth actually hampers profits as the issue concerning us is to be able to keep servicing our corporate clients, many of whom are offloading costs to each employee. We need aggressive double digit increases and pursue expansion of enrolments. Profits are important to us as they will help us survive a possible downturn caused by a low premium regime. Our goal would be achieve a premium yield of about 20% which would help us outpace the cost of expansion. This would come through our corporate clients It is suggested we that we prune down our client list to include those who would be able to share these costs.

Ultimately, we would benefit from reducing the growing numbers of uninsured and passing off associated costs to those who can afford these.Degree of risk - Growth in enrollment would probably put us for a while in the path of unpredictable developments like rate of inclusion of new clinical technologies which would make costs spiral. This trend could be weathered by us as we have a mix of clients including those who came to us from other providers. This would be more preferable to the present trend of holding premium prices down in order to