Reducing Employer Cost

Healthcare is a debate found in many countries with government being asked by its citizens to provide the service free while the private sector saying citizens should pay for it. Every person is entitled to basic health care thus it should be easily accessible and affordable. It is believed that the duty of every government to ensure that its citizens have access to vital resources such as health care. Health care is a resource that should be available to everyone whether they can afford to pay or not. The US healthcare system has both private and public insurance plans.

The government runs two schemes known as Mediaid and Medicare. The other schemes are privately run and consist of privately purchased health insurance (Uretsry, 2005). Medicare is a plan for the aged and the disabled. The other government funded plan Mediaid,  targets certain population groups like children and cancer patients. The healthcare system in America is tugged by inefficiency, run away administrative costs, wastage and duplication of issues among other things. The US government spends about 13% of GDP on health care.

This is too much compared to its counterparts in Europe who spend about 6. 5 – 10% of GDP on healthcare. In Europe about 70 – 90% of the population is covered by health care while in the US, only 40% of its population is covered by healthcare. Research also shows that Americans do not live as long as Europeans and that their mortality rate is higher (Gauthier et al, 2005). The sorry state of the health system has made the office of the governor concerned and hence create an action plan on how to tackle the problems faced by this vital service. The following is the proposed plan that will try and make health care a reality for the people of this state.

Reducing Employer Cost The population of most countries is growing and this is putting a strain on health care systems the world over and especially their financing. In the US, national health expenditures are predicted to reach $2. 8 trillion in 2011 with an growth rate of 7. 3% annually. This is going to be impossible to fund using both private and public funding. Rising costs are being caused by growth in population, inflation and more people having access to health care, complexity of treatment and cost of drugs (Stanton, 2002).

Various strategies have been used worldwide to keep down the cost of health care. These include employer contribution methods, cost sharing, mergers, competing among public hospitals and many others. To reduce on costs, employers will be allowed to choose from various schemes so that they choose the scheme that best suits them financially and the nature of their workers. Employers will be expected to contribute to the health savings account if it has temporary workers or an insurance policy for its permanent workers (Goldsteen & Goldsteen, 2006).

Employers will not be allowed to have employees who are not insured as is the case today. Having health saving accounts help relieves the employer of some cost as the employee is also contributing to his health care. The employer only tops up the account but the employee puts in monthly remittances. Employees earning above a certain amount of income will be subjected to a tax that will go to the funding of public health care and the employer will be required to top it up with a certain amount. Employers will also have to hold seminars to educate employees on good health habits and how to keep healthy.

Prevention is better than cure and in the long run this will reduce the number of employees falling sick hence the overall healthcare bill. Also this will prevent employees from always running to hospital for small ailments which they should leave for their immune system to fight for their own good. They will also be educated on preventative measures of developing certain ailments by eating healthy foods and exercising (Civitas, 2002). Employers who hold seminars will be reimbursed for their costs.

Increasing the efficiency of public hospitals will bring down the total healthcare bill hence employer’s contribution. For example, public health institutions are normally very spendthrift and do not practice any cost saving measures. If the efficiency of these institutions is improved, there shall be less wastage and those resources can be used to treat additional people. For example, instead of using an ambulance to go see a patient at in their workplace, public institutions should be encouraged to tell patients to visit the hospital instead (Landro, 2003).