Health care Economics

Healthcare Economics

The U .S . government 's decision to finance the healthcare services of the poor and the elderly can be attributed to the increasing role of the law . Medicare was designed to resemble the health plans of the Blue Cross and the Blue Shield (Bloche 2003 . Hospitals collaborated with physicians to enable health consumers to get protection from the financial burden of unpredictable costs of healthcare without the price competition among healthcare providers . The role of government has increased in importance due to the continued rise in healthcare costs .Medicare is

a more affordable health plan than the ones provided by private health insurance companies . In 1983 , Medicare shifted its reimbursement system from a system of retrospective cost reimbursement to prospectively determined payments based from the diagnosis given to patients . The change in the system of reimbursement minimized the occurrence of litigation of such issues . The beneficiaries of Medicare were given the freedom to choose healthcare providers . Medicare also allowed healthcare providers to participate in the program unless they were disqualified by the government for a valid cause . The government in this regard , lost the powers like those available to private payers as protection from exploitation

The concept of the third party payment system revolves around the idea of monetary contributions are collected from different types of population groups regardless of the healthcare requirements of the population members (McPake 2008 . These financial contributions are in turn collected by third-party payers like the government or insurance companies . The financial resources...