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Us Healthcare System Reform

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Submitted By Jupiter57
Words 3203
Pages 13
Topic: U.S. HEALTHCARE SYSTEM REFORM
Course Project
T. Wise
DeVry HSM 534 Health Service Finance
February 23, 2013 Week 7
Professor Alison Williams

Background
The United States, being the most diverse society in the world, has a long and unsuccessful history of attempts at healthcare reform. We spend almost $2 trillion dollars per year on healthcare, yet not all American people have medical coverage (Barton, 2007). A huge percent of the population have to rely on outside sources, such as benefit health care from an employer or from government programs, such as Medicare and Medicaid. As compared to other nations, our society has people that are more overweight, live under more stress, and are less in physical activity. Additionally, our healthcare system underperforms compared to with other nations in critical areas such as, access, quality and efficiency (Davis). How did our system get this way? Why are we paying so much while other nations not so much?
A history of major events - The U.S. healthcare system is trying to evolve with modern times; however, as time goes on, our current situation becomes more apparent:
* In the 1950s, the price of hospital care was growing; however, more attention was diverted to the war in Korea. Many legislative proposals were made, but none could not be agreed on.
* In the 1960s, hospital care expenses doubled, and despite over 700 insurance companies selling health insurance, a large percentage of the population could not afford it. During this time, Medicare and Medicaid were signed into law.
* In the 1970s, as Health Maintenance Organizations (HMOs) begin to take form, healthcare cost continue to escalate, partially due to unforeseen high Medicare costs, coupled with rapid inflation in the economy.
* Medicare shifted to payment by diagnosis (DRG) instead of by treatment only in the 1980s.

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