Financing Health Care – Coursework Example

Financing Health Care Financing Health Care There are potential opportunities and hazards associated with theAffordable Care Act. The main hazard in shifting health care expenditure to the government is that the national debt is likely to increase. Economists place the system at the heart of the financial crisis facing the US, and the rise of costs in maintaining it may even lead to its collapse. If significant reforms are not introduced into the health care sector, the government will fail to address the financial deficit (Ranawat 2008). Shifting health care expenditure to the government was a huge milestone in tackling cost growth. When health care costs are lowered, all other costs including hiring of new employees reduce. Health care coverage increases labor supply by reducing absenteeism and risks in the workplace. The labor supply would increase the GDP, raise national savings, lower unemployment, and improve the standards of living (“Whitehouse” 2009).
By shifting health care costs from the government, individuals are bound to suffer. The suffering primarily comes from increased finances and poor health service delivery (“Whitehouse” 2009). Patients, for example, with chronic conditions but are financially disadvantaged may not receive the appropriate treatment. Chronic conditions require constant maintenance and if not, the patient can pass earlier than when provided with appropriate care. The shifting is also detrimental because individuals will have to pay more for inflated prices than when catered by the government. There are, however, opportunities associated with shifting the expenditure to individuals and insurance companies. First, it can be a solution to curbing the growing national debt. Sourcing for funds used in the system can cease and the government can concentrate its efforts elsewhere. Although absurd, medics can take advantage and exploit patients and insurance companies, but in return provide quality services.
References
Ranawat, A. (2008, January 1). Issues Facing America: Medicare. Retrieved February 21, 2015, from http://www.aaos.org/news/aaosnow/aug08/reimbursement1.asp
“Whitehouse” (2009 June), The Econoic Case for Health Care Reform. Retrieved May 18, 2015 from https://www.whitehouse.gov/assets/documents/CEA_Health_Care_Report.pdf