Essay on U.S. Health Care Timeline

921 Words Mar 9th, 2012 4 Pages
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1950 | Most American receives their health coverage through the private insurance market, usually through their jobs. Many people buy insurance on their own in the individual market. Since coverage from private companies is the largest surge of insurance for Americans it is likely to be a central part of federal and state health reform efforts. Private health coverage is a mechanism for people to protect themselves from the potentially extreme financial costs of medical care if they become severely ill,
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Nearly 30 years after the HMO Act was signed into law, HMO outnumbered private health care insurance plans and enrolled more than 80 million members. | 1980 | Prospective Payment System (PPS) first began in 1980 with a small number of hospitals partitioned into three groups according to their budget positions---breakeven, surplus, and deficit--- prior to the imposition of DRG payment (Diagnosis- related group). The PPS as DRG’s had been designed to limit the share of hospital revenues derived from the Medicare program budget, and in spite of doubtful results in New Jersey, it was decided in 1983 to impose DRG’s on hospitals nationwide. | 1990 | State Children’s Health Insurance Program (SCHIP) was created in 1997 to insure children in families with too much income to qualify for Medicaid and too little to afford private insurance. It emerged from a budget negotiation between a Democratic president and Republican Congress. As such, the program represents a fine balance, designed to maintain equilibrium between states and the federal government, as well as between political conservatives and liberals. States have the option of providing child health assistance in SCHIP through Medicaid, a separate program, or a combination of the two. There is also flexibility in benefits designed; through benefits must meet certain set standards. On average, the federal government pays

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