Question

The United States spends more on health care than any other nation, yet we tend to have poorer health outcomes and a lower life expectancy. Please discuss why you think this is and whether it makes the case for the Affordable Care Act.

Answer 1

This is true that US spends so much on health care and then also it has poorer health outcomes. This is due to following reasons:

• Health care services are priced at high rate in US as compared to other countries.
• Administrative costs of care, activities related to planning, regulating, and managing health systems and services accounts for 8% of total healthcare costs which is higher as compared to other countries.
• Per capita spending on pharmaceuticals is much higher in US as compared to other countries. Pharmaceuticals are very expensive in US.
• Average salary of general practitioner in US is much higher as compared to its international counterparts.

So, we can say costs of healthcare services in US is much higher as compared to the benefits derived from such services.

Impact of Affordable Care Act on US health care is as follows:

• This act provides coverage for pre existing conditions. As a result adults who could not get coverage because of a pre-existing condition, such as diabetes or cancer will now get coverage. Also, insurance companies could not raise premiums for infants or children because of a pre-existing condition or disability.
• Children can remain on parental plans till they are 26 years old, resulting in savings on insurance premium costs.
• It provides tax credits to small businesses to get health insurance for their workers.
• This act provides wider coverage of insurance and security for all by removing clause of pre existing conditions, offering 50 percent discount on brand-named prescription medications and a 7 percent discount on generic ones. Also medicare patients are now eligible for many type of screening and preventive services which are offered free of cost.