Medical Costs in the United States Research Paper

Medical Costs in the United States - Research Paper ExampleHealthcare costs are on the rise and there seems to be no focus for these costs to incumbrance without reform measures. The Problem with Healthcare Spending One problem with healthcare disbursement is that it is growing faster than the economy and everyone is affected by this change. Whether people use private damages, Medicare or Medicaid, they will be affected in some way as healthcare costs continue to grow. (Myerson, Nelson, Simpson, and Topoleski (2007). This has put healthcare as a much talked about burden and it is both a social issue and an economic one. According to Healthcare Problems.org, in 2007 about 50 million Americans went without health insurance and about 25 million were considered underinsured. Between 2001 and 2005 health insurance agiotages increased by 30% but peoples income only rose about three percent. Today, healthcare expenditures restrain increased to $2 one million million million a year. Over the past four years, the number of people who are now underinsured has reached 60% which means that 25 million people are try to pay their healthcare bills (Healthcare Statistics, 2011). The highest rate of underinsured (31%) is in those Americans who make less than $20,000 a year. After doing an informal survey of people I know, many Americans rival that there should be some type of healthcare reform, but most people are not sure how this reform would take place and who would investment company it. Employer Based Insurance When people look for a job one of the benefits they look for is health insurance. Many people feel that if the employer offers insurance they will be able to afford to have insurance. Unfortunately, employer supplied healthcare is also suffering because of the rising costs of healthcare. According to a report by Singhal, Stueland, and Ungerman (2011) the Affordable Healthcare travel has created more cost problems for employers and many have limited this benefit for their employees or stopped providing it all together. According to their report, by 2014, employers will have to make drastic changes in the way they do healthcare. One of these drastic changes is that about 30% of employers will probably stop offering insurance to their employees after 2014 because of the expense. Singhal, Stueland and Ungerman (20010 surveyed employers and predict that if employers stop offering insurance, they may increase their revenues by at least 30% this makes this option very attractive to employers who are struggling to provide healthcare. Singhal, Stueland, and Ungerman (2011) also sound out that because of the way that reform is stated, employers are able to limit their social obligation to their employees to offer insurance. The way in which the reform act is written, states that all employees must have some type of insurance, but they do not stipulate that employers have to provide it. The Act states that if the employer does not offer ins urance, the individual can apply for income-indexed premium and out-of-pocket cost-sharing subsidies (Singhal, Stueland, and Ungerman, 2011, p.2). The law specifically states that employers with 50 or more employees must offer health insurance to all full time employees or impertinence a fine of $2,000. They also must provide reasonable coverage to all their employees on a similar level. In other words,