Tag: affordable care act

Do Health Insurance Companies Help or Hurt the U.S. Healthcare Economy

In one of the most uncertain times this country has seen in many decades, healthcare seems to be on the lips of everyone across the nation. Some people are in complete favor of health care reform or universal coverage for the country (as every other 1st world country has), while others are for keeping things just as they are. It is not just the real cost of stuff that has people choosing sides, however. When you factor in how the cost and necessity of health coverage affect the economy of the country as a whole, you should educate yourself before you pick a side of this fence to be standing.

Generally speaking, the economy is on the rise. Despite your party voting habits, the economy hit a dangerous pitfall several years back and has been crawling down the road of recovery employment. When you factor in the rising cost of living nearly everywhere in the country, the need for better-paying jobs and work offering health coverage as a fringe benefit to employment is a hot commodity.

The economy as a whole in the country is centered around people being able to spend their money on products, services and to live in general. These all become pieces of the puzzle. When people are no longer able to afford to continue to purchase these “pieces”, the economy suffers as a result. When the cost of something like health care goes up more, then people have less money for commerce. That means they aren’t out getting new vehicles; they aren’t taking trips, and they aren’t making non-necessity purchases as often.

Particularly in the middle-class working trades, healthcare is reaching critical amounts each month to maintain coverage. Particularly when it comes to optometry, as we were told by the lead eye doctor at Sugar Land Eye Professionals. “It’s ridiculous,” he said, “Patients are getting pinched on their health insurance, and they’re almost completely cutting vision insurance. Few people carried vision insurance compared to health insurance previous, but now the disparity between those numbers grows more and more every month.”

In a work environment that is often contingent on the ebb and flow of construction as a whole and the weather permitting nature of this development, it is becoming increasingly difficult for the working class to accrue enough hours in a month to afford the coverage. On average, a family plan sits just above $700 a month, and for union workers, the average is closer to $1000. If this isn’t covered by the employer completely, then some or this entire amount is being asked of each working person every month. As Dr.

The drawback to this, besides a general lack of extra spending money to bolster the economy, is the vulnerability that those paying out of pocket for their insurance experience. Health insurance, in general, is contingent on making more from you than It will ever be asked to pay out, which is why more and more insurance companies are refusing to pay entire costs of things like operations or procedures. If they are willing to cover that, Only after the client is asked to pay a high deductible out of pocket. It efficiently depletes the savings of any working family in a time where savings in general are hard to come.

The other side of this equation is the statistic thrown around that the average American spends one of every five dollars they have on some form of health insurance. So reforms have been surfacing during this decade, such as President Obama’s universal healthcare plan. This policy’s fine print suggests that a family making 120,000 dollars a year should pay in 20,000 dollars to healthcare. It isn’t unlike the high taxes that make universal healthcare work and function in other highly developed countries around the world, but it is a hard pill to swallow. Many Americans who have health insurance are not paying out of pocket for it at all, but it is an incurred cost of their employer. So for someone who doesn’t currently pay anything for decent coverage plans, a 20 percent tax on your earned income to cover a national health plan will be an outrage.

So therein lays the creation of the fence. To look at the facts, It’s system is putting a very deep cut into the economy. People are forced to hold their money back to cover the cost of their insurance in general instead of spending it elsewhere. But an argument could be made that the higher cost of living is doing a number on the economy as well, not just the rising annual costs of health coverage.

The Healthcare Economy in the USA

Despite being the economic and military superpower of the world, the United States has a uniquely troubling dilemma among its first-world peers: costly and often inefficient health care for average citizens. The United States if fiercely capitalist in nature, and often incorporates this into the government in places where other nations would not, such as in regards to health care.

American health care facilities and insurers privatized, and thus have no uniform pricing metric, and so medical bills and insurance policies alike have cost through the roof. Also, due to the polarized nature of American politics, any efforts to make health care public are met with fierce opposition and often implemented halfway and ineffectively. The most obvious example of this is the Affordable Care Act, commonly known as Obamacare, which has met with such fierce opposition that many of its supporting bills have not passed, leaving the bill a mess which has only compounded problems.

The heart of the problem originates among large pharmaceutical producers, who often artificially inflate prices simply because they can. Little regulation exists in this section of the economy, and manufacturers can overnight raise prices to absurd amounts. Capitalist economics would prevent this, but the aforementioned broken government policies ensure that every citizen can and will buy necessary medication, and so these companies know that if their product works as advertised, patients will buy them at all costs.

An excellent example of this is the case of Martin Shkreli, Founder and former CEO of Turing Pharmaceuticals. His company acquired the rights to anti-parasitic drug Daraprim and overnight increased prices by 5,556 percent. It was perfectly legal, and he later explained that the move was less about profit and more about showing the problems with deregulation, and pointed out that any American could buy the supposedly $800 tablets for only a few dollars thanks to insurance regulations.

It fuels the problem which is ultimately secondary but a much more hotly debated issue: overpriced and privatized health insurance. Health insurance companies must turn a profit, and with price manipulation by both hospitals and drug manufacturers, they must implement exceedingly high rates to turn a profit. It is a more direct cost to most Americans, hence their louder calls to make health care cheaper or free. However, will unfortunately only compound the problem as manufacturers are free to raise prices even more than they do already, as the federal government would cover all costs regardless.

The only real solution or improvement to US healthcare economy can come via regulation on pharmaceutical manufacturers and hospitals. Limits on sale price-manufacture cost ratios could be a viable solution, as well as market regulation on prices of raw ingredients. Ultimately, however, this faces stiff opposition from most major political parties, due to fears of government overreach or sometimes pure corruption. Compared to the small margins of insurance companies, some of which are moving out of health care altogether, these pharmaceutical corporations make new profits as long as they have unique and specialized drugs in their production lines.