Historical Transitioning and Growth of the U.S. Health Care System

HistoricalTransitioning and Growth of the U.S. Health Care System

HistoricalTransitioning and Growth of the U.S. Health Care System

1.Key milestones involved in the past and present shaping of thepresent health care industry

TheUnited States has the oldest history of enhancing universal healthcare system the world. This system is dated back during 1885 when thepresident of the U.S. enacted social legislation that was mainlyfocused on health and accident bill insurance in 1883. In 1889, healso facilitated enactment of old age and disability bill (Busse,2008). All these bills marked the initial steps of achievinguniversal health care system. This is because through them, mostemployed people and their financial dependents were offered healthcoverage for a minimum of five years regardless of whether they areworking or not.

Thehealth insurance system in this country was put into force until 1948when National Health Service was created. This system was veryimportant because it provided health care services and securities toall people in the country. After the Second World War, universalhealth care system was implemented in the US as a way of reforminghealth care in this country. This system was implemented in order tocreate availability of health services to all people. This was mostlyin regard to Article 25 of 1948 Universal Declaration of Human Rightsbill. The bill was signed by many countries across the world. Sincethen, universal health care system in the US has undergone somedevelopment and expansion that enable the country to offer freehealth services to every individual (Geyer, 2009). The systemreceived an enormous expansion after the economic booming.During this period, health care providers increased substantiallythus accommodating health problems in the country. Currently, toenhance, universalhealth care system the government has enhanced multi-player system.Health care services are funded by public and private contributionunder the system.

Currently,Universal health care system ensures that all citizens havecompulsory insurance policies. The rate of premiums provided forhealth insurance in the U.S depends on the level of income among thecitizens. A minimum amount of premium is also provided in order toensure every employed individual is entitled to paying of insurancepolicies (Mason, 2000). These policies are enforced throughlegislation that requires residents to have insurance. In some cases,the government of the United States is required to provide theseinsurance to all citizens.

Fundingmodels for health insurance policies in the United States uses singlepayer. This is the primary source of getting health funds. In thiscase, tax revenue is collected from both public and private sectorsin order to cater for quality and affordable health services to itscitizens. In 2010, President Barack Obama enacted “Affordable CareAct.” This act was meant to provide quality health services toAmerican people although some people argue that a lot need to be madeon this act in order to ensure every American individual is liable tofree medical services (Gilleskie &amp Mroz, 2004). To enforce 2010“Affordable Care Act” in the United States, insurance policymandate is used. This policy is used to provide health care to peopleby insuring them.

2.Evaluation of the importance of financing and technology in healthcare

America’shealth care system allows a considerable number of its population toaccess high-quality health care without long waits. This is mainlydue to high technology that have4 been invested in health caresystems. The heath care system in the United States is well equippedto facilitate the well-being of the citizens. Although health carefacilities are provided at high cost, the government funds them toensure all people receive quality services. Through the governmentfunding of healthcare services, the uninsured and increasingpopulation of underinsured, the minority groups, as well as the poorhave unlimited and sufficient access to health care resulting tobetter health outcomes. As such, provision of affordable, easilyaccessible, and quality health care to the entire American populationremains a better approach that enhances equality (Gilleskie&amp Mroz, 2004).It is apparent that ensuring health care access to all Americancitizens, while maintaining high-quality health as well as managingoverall expenses is an overwhelming approach. Furthermore, the issueof health insurance coverage and cost sharing has benefited manypeople in the U.S.

Inaddition, thesupply of medical services in the United States has influenced thedemand of medical treatment from the patients. These services havealso affected patient’s behavior on quest for treatment. Thismedical service has made patients to seek medical services even tominimal complaint. Increased demand for health services among thepatients has increased labor supply for the physicians (Gaynor,1994). They have an increased labor to offer due to higher number ofpatients visiting both private and public hospitals for medicalservices.

3.Primary complexities and integrated social dynamics associated withchanging demographics

Itis worth noting that the outcome of universal health care in the U.Son patient-physician relationship can be analyzed from economic ofinformation perspective. This type of health service has theoreticalmodels that are based on the behavior of the physicians. It alsoincorporates health related behavior of the patients. In addition,the U.S. health care system is characterized by private healthinsurance and statutory health insurance systems. Currently,approximate 90% of the U.S populations are covered by statutoryhealth insurance system while about nine percent are covered byprivate health insurance (Schneider &amp Ulrich, 2007). Theseschemes have allowed patients to have the capacity of making choiceon free health services. Physicians have mandate of providing allmedical specialties to their patients with ambulatory care. Thecentral element of Universal health care system in the United Statesis that it offers strategic interaction of patient’s compliance andmedical services from the physicians.

4.&nbspMajorfluctuating and daunting challenges in health care management&nbsp

Highand rising cost of health facilities is a key issues associated withUniversal health care system in the U.S. In the year 2007, thegovernment spent US$3,588 per capita on health care services(Gilleskie &amp Mroz, 2004). This was very high amount of money tobe spent on health services per year. Currently, Universal healthcare system in the U.S has increased the country’s expenditure. Inthis case, expenditures are growing at a higher rate than the GrossDomestic Product (GDP). Aging population in this country has alsocontributed to this problem.

Anotherproblem associated with modern health care system in the UnitedStates is inconsistence eminence for health care. Overwhelming costof health facilities affects the quality of health care thus failingto satisfy their obligations. Increasing cost of medical facilitieshas led to lots of avoidable errors and unsuccessful treatments. Asnoted from the commonwealth fund, out that 13 percent of the entirepatients in the United States have experienced medical mistakes intheir treatment while 10 percent have encountered medical error(Gilleskie &amp Mroz, 2004). The challenging global economicenvironment and other debt problems affecting European Union havesubjected the United States in a situation of slow economic growthrate.


Busse,R. (2008). TheUnited States Health Care System.Retrieved February 27, 2013, from http://www.commonwealthfund.org/~/media/Files/Resources/2008/Health%20Care%20System%20Profiles/United States_Country_Profile_2008_2%20pdf.pdf

Gaynor,M. (1994). Issues in the Industrial Organization of the Market forPhysician Services. Journalof Economics and Management Strategy, 3(2),211-255.

Geyer,C. ( 2009, August 18). Healthcarein the United States.Retrieved February 27, 2013, from http://www.amiexpat.com/2009/08/18/health-care-in-United States/&gt

Gilleskie,D. B., &amp Mroz, T. A. (2004). A Flexible Approach for Estimatingthe Effects of Covariates on Health Expenditure. Journalof Health Economics, 23(1),391-418.

Mason,M. K. (2000). Profileon German Insurance Market.Retrieved February 27, 2013, from www.moyak.com/papers/germany-insurance-market.pdf

Schneider,U., &amp Ulrich, V. ( 2007, March). HealthRelevant Behavior and its Impact on the Physician-PatientRelationship.Retrieved February 27, 2013, fromhttp://www.lsw.wiso.uni-erlangen.de/BGPE/texte/DP/023_schneider_ulrich.pdf