Reforms required in Health Care spending
Seattle – Federal efforts towards economic reforms by increasing tax money and reducing the payments should be applied in all sectors including Health care system. When compared with US Gross Domestic Product (GDP), health care cost compromises over 16 percent and as per Centers for Medicare and Medicaid Services (CMS) it may reach up to 20 percent by 2018.
It is believed that US national Economy faces $14 billion deficit, cut in the cost of health care sector may help individuals to divert the funds to other emerging sectors and to create employment. In order to protect the economy, stimulus package of $787 billion was released by President Barack Obama, out of which $155 million were allocated to 126 healthcare communities. Experts say that from 2008 to 2018 spending on health care can grow up to 2.1 percent faster that national GDP and spending by federal government on Medicare may double by 2018.
Survey conducted in the high cost areas to determine the reason for increase in spending indicated that there is more spending on per capita. As compared to required number, these areas have more hospital beds, physicians and frequent visits by doctors. It was also pointed that often patients who do not have health insurance or instance if their local physician office is closed, are sent to emergency department for routine care. This increases the cost for the individuals as compared to normal clinics. Pickens informed in the telephonic interview that “Hospitals currently have overcrowded emergency departments and would probably prefer to see care given in more appropriate settings for conditions that don’t require hospitalization”.
This makes the health care system of United States more complicated system along with most advanced system. Policy makers are Legislators are busy in developing spending plan for 2009-10 by the end of this month.