Economic Status of the Health Care Industry

Medicaid, on a other hand, is defined as the joint federal-state process that finances wellness care to your poor.

With respect on the modern day economic reputation of Medicare, Levit, Cowan, Lazenby, Sensenig, McDonnell, Stiller and Martin (2000) said that there has been a distinct decrease in the rise of Medicare prices because 1991 with figures showing only a 4.1 percent enhance from 1991 to 1998. The authors attribute this decrease within the acceleration of prices towards the impact in the Balanced Budget Act, the falling case-mix in hospitals, and to beneficial progress in governmental efforts to combat fraud and abuse inside the program.

Medicaid, however, has shown less of a decrease in rising costs. However, you will find some signs that there may be a slowing of this increase as a result of new welfare to work requirements and strong employment growth. Given these facts, Levit et. al (2000) region how the country can be seeing some stabilization of Medicare and Medicaid costs.

However, regardless of whether this stabilization will continue is doubtful given that coverage of prescription drugs is increasingly getting viewed by political and legislative powers as the next possible step for Medicare (Walker, 1999). Regarding the economic consequences of changing Medicare to incorporate prescription drug coverage, Ginzberg and Minogiannis (2000) region that the government will possibly obtain this by increasing taxes.

Given the economic picture from the health care industry, it appears reasonable to country that its economic future does not seem promising. Costs are already high and you can find a lot of causes to consider that despite different price containment efforts, they will rise a lot higher in the future. It is most likely how the dilemma can only be solved in the short-run with a compromise among legislators and medical companies. Helpful short-term goods may well include an overhaul of Medicare and Medicaid, continued restructuring of hospitals, improvements in assessments of medical technology, plus a continuing expansion of managed care.

The authors note that the basic objective in this regard is to determine which medical devices and services warrant well being advantages coverage and to support in this decision-making process, managed care organizations are increasingly turning to "technology assessment." They define technology assessment like a system that differs within the Food and Drug Administration's review of medical devices; rather it's a structured procedure to implementing coverage requirements in employer group benefits contracts where assessment is conducted to evaluate the scientific evidence of effectiveness to help coverage decisions.

A longitudinal discover in the economics of managed care was conducted by Wise (2000) for your National Bureau of Economic Research, an independent, nonprofit economic look for organization established in 1920. In between the study's several findings, Wise observed that states with high managed care enrollment have much lower their growth in health care prices more than the prices of states with lower managed care enrollment.

 

 

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