Chapter 10 Case Study Strategic Compensation Essay

Many people are seriously ill when they seek treatment because they lacked enough money in their insurance for treatment (Bush, 2015). Although people have reported general satisfaction with their health plans under PPACA, a Kaiser Family Foundation (KFF) survey has revealed that affordability is a concern for those who buy their own health insurance. 46% of those with both ACA-compliant and noncompliant plans reported it was “very” or “somewhat” difficult for them to afford their monthly health insurance premium (Medical Economics, 2015). Cost of care has been a longstanding barrier to care for minority groups. The survey did not find an improvement in Blacks and Asians skipping care due to cost concerns. (Pallarito, 2015).

More and more people with medical insurance are relying on the health care system as new technologies and treatments become available. This leads to a grater number of claims for payment by insurance companies, the costs of which are passed back to health care consumers. The baby-boom generation is entering its peak health-care using period. Over eighty million Americans will turn 50 in the next 10 years. The cost of providing heath care for these individuals will be staggering

The cost of health insurance has changed drastically over the years as it has become more expensive. Depending on personal characteristic, the cost of health insurance may vary. For instance, as individuals grow older the more expensive it becomes. In this case, health insurance is more costly because “older individuals require more health care” therefore “the cost of providing health care is rising” (Madura &Atlantic, 2012). Not only does this affect the high cost of health insurance, but the number of individuals uninsured. As stated by Madura and Atlantic (2012), “about one in every five workers is uninsured” and has increased since then because health insurance has become unaffordable. As a result, individuals tend to seek health care elsewhere as they can no longer

I believe healthcare reform is a waste of time and money but I also see that it can be beneficial to many uninsured Americans. First of all, health care costs keep rising and in 2011 the average cost for a family of four increased by 7.3% or $19,393. This is double the cost estimated in 2003, and by 2030 payroll taxes will cover only 38% of Medicare Costs and the rest will be added to our already enormous budget deficit.

Some of the reasons some of the individuals may not want to buy health insurance the deductibles and premiums are very high and you pay way to much money for it. You also have to qualify for private health insurance.

When contemplating health care policy changes, several economic issues in health care must be considered. These include the financial issues affecting the health sector and have an impact on health policies. Policy makers face unending challenges due to the health sector revenues that are always rising. Another challenge is decreased funding and failure of the health insurance services.

Impact to Healthcare organizations - These increases in cost raise questions of health care expenses at the hospital level. As higher profits are sought, the cost will become unstable for all, thus causing many to postpone going to the doctor. However, there are many complicated problems associated with our healthcare system. We will focus on main issues that can correct many related problems within the current structure. More importantly, we need to find ways to ensure all Americans have access to health care; and we need to hone in on how we can get the best value for the $2 trillion dollars we spend annually on healthcare.

Despite the improvements made toward health reform, there are still problems that need to be address. There are still cost related access problems among insured adults, particularly among people with lower incomes. According to the Commonwealth Fund Biennial Health Insurance Survey of 2014, 33 percent of adults who had been insured all year with incomes under 200 percent of poverty and 25 percent with incomes above that level said they did not get needed care because of costs in the past 12 months (Collins et al., 2015). The high deductibles and cost sharing in both employer and individually purchased private plans lead many adults to delay or avoid needed care (Collins et al., 2015). Also there is still a large share of adults who were insured all year but still struggle to pay their medical bills. People with lower incomes reported these problems at the highest rates. One third (34%) of adults with incomes under 200 percent of poverty who were insured all year

Insuring health coverage for dependent adults until age 26 aims to decrease the great number of young adults uninsured out of college, and increases the number of young adults visiting the hospital for major to minor health issues. Unfortunately, before this extension was made, many dependent young adults opted out of medical visits because the fear of the costly visit. Approximately 13.7 million young adults were in uninsured in 2008, which was a jump from 10.9 million in 2000 (Collins, 2010). With this law being made under the Affordable Health Care Act, young adults should feel more comfortable to visit the hospital for minor health issues, in order to prevent major health issues.

Someone without health coverage are less likely to receive preventative care and therefore more likely to become ill which increases medical costs, [1].

To start with, we must first understand what a managerial strategy means and how we can apply the appropriately.

The services that are offered by the gold, silver and platinum packages are ideal for individuals with chronic condition because it provide them with frequent access to health care services. However, these services are restricted to individuals based on their financial resources. Expanding federal and state funds that are appropriated towards subsidized health care is essential for the success of this proposal. This proposal stipulates reducing the funds allocated to military spending, that reducing the current budget from 18% to 17.2% (CPBB, 2015). As a result, funding towards health care system will increase to approximately 24.8% (CPBB, 2015). Increasing the funds towards, health care system is essential in achieving the goals outlines in the Patient Protection and

In conclusion, a structure on lower cost is pertinent to providing the right model for the system. Achieving a prosperous medical outcome in the end requires a cost budget that will benefit not only the Health care organization but the patients as well. Another benefit for patients is to implement a low cost strategy that will allow patients to receive medical treatment and also pay out cost that meets the individual’s budget. Creating an income chart would also be a way to know what a patient can afford to pay.

Gapenski, L. (2006). Healthcare Finance (4th Ed.). Retrieved from The University of Phoenix eBook Collection database.

Upon returning from a national meeting on compensation and benefits, the HR director of Frontline PR takes interest in HSAs as a reasonable choice for her organization. Susan's organization has been battling with the cost of medical insurance expenses and are looking for a solution to decrease company costs to healthcare for the employees. There are 150 individuals that work for Frontline PR and the greater part of Frontline's representatives are qualified to take part in Frontline PR's health insurance coverage benefits. Susan has talked about the HSA alternative with Allison Jones who is the director of finance of Frontline