The New Healthcare Model Cuts Spending in Y2

Posted in Health and Beauty

With the United States in a multi-trillion dollar debt, it is necessary for the federal government to do what it can in order to reduce its overall amount of debt. After all, if the country does nothing the debt is going to continue to increase at rather alarming rates and it is just going to force the government to shut down, at some point, or be put in a difficult spot when another country calls for the debt to be repaid.  Due to this, the United States is looking at all sorts of different ways to try and trim off the deficit.

Recently, the United States even had its credit ranking reduced, and although that shouldn’t affect the way the country receives loans in the future, it is not a good sign for the economy or how it functions. One of these methods to trim the deficit is to alter healthcare and to utilize a different model in order to cut down the spending. Because the healthcare model currently in use does take up a good portion of the budget, the government has been looking at possible model cuts in spending in order to trim away the national debt over the next few years. Of course, this means there are going to be fewer services available for the average tax payer and it could possible result in a rather significant drop in healthcare offerings despite the current need for nurses and high number of nurses currently participating in RN to MSN programs to meet the recent nursing standards changes.

Healthcare Model

Over the last several years, one of the largest expenses for the economy is Medicare and Medicaid. Medicare costs have increased 8.3 percent over the past forty years and, if not reduced or altered, it is actually going to be the largest cost to the federal government. The health-care bill the United States Congress passed over the past year is taking a completely different approach in dealing with the current budget crises and altering the actual budget. They are doing this by cutting four hundred billion dollars from the Medicare budget and setting in place several different health care systems in order to ensure it runs more effectively and that there are fewer individuals taking advantage of the system. Recent reports indicate that Medicare spending has decreased more than predicted.  In fact, it looks like the new healthcare law is in fact “bending the curve downward” which was a goal of the administration.  Spending has decreased more in year two than in year one.

One of the largest issues with the healthcare system inside the United States remains the amount of funding and resources it wastes due to unnecessary procedures it shouldn’t pay for. Because of this, the government is looking for ways to alter what services it is currently paying for and who is receiving access to the Medicare services. They are experimenting with medical home programs where insurance payments to providers are tied to the quality of care they deliver.  One program has cut costs 4.7% in two years.

The United States spends more money on its health services than any other industrial nation in the world, yet the services are actually behind what other nations are able to receive. Due to this, the United States government is hoping by reducing the amount of money it spends on services and changing the format in which individuals receive the services, it ends up improving the quality of care.

Of course, with both Republicans and Democrats fighting it out regarding potential cuts to the healthcare system, it is difficult for either side to truly get anything worthwhile put into the budget. This is because for one, senior citizens receive the vast majority of the Medicare and Medicaid services, and a cut in these services is often seen as a direct attack on senior citizens. Because many senators and representatives rely on senior citizens to vote them into office they don’t want to go out and cut funding to these individuals, even though doing so might eventually provide better services and care for everyone.  Since the seniors now receiving Medicare and Medicaid have paid into the system for years before receiving any services, cutting services to them is difficult.


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