In this article David Cutler puts forward the idea and that Health care reform in the United Stated needs to take place because there is a crisis looming in the future. From an American perspective he suggests that older people uses more Medicare dollars than any other age group in society. Also that health care cost in general have risen between 25 to 50 percent in a ten-year period. Due to the population aging and increased cost of Medicare, Cutler says that there will be a large burden on the public sector costs in the near future.
The reason that he gives for the increased cost to medical care is that there have been and a rise in the quantity of services over time. Also he says that there are more people that are in need of health services. One of options that Cutler gives to reform the system is that there should be a reallocation of money in the health care system. His method for this reallocation is to charge more for the insurance of the elderly, as much as 25 percent. Those who would be unable to pay more, he suggest should have their children supplement this increase. Another way he puts forward is to pay less for medical care.
The third way he suggests that money could be reallocated is by service reductions. The way to accomplish this is though the insurance system. Essentially he says that the less the insurer will fund in turn the less services the patient will utilized. This is because they will be deterred by the prospect to having to pay outright for services. One final point that the author makes is that the elderly of a society can not be dealt with in isolation of the rest when thinking of health care reform. This article is an American perspective on how to deal with the rising health care costs to society.
His approach is very economical and at times seems to lack necessary features to be applied to the situations. The solutions may look like they are good, however if applied there are some obvious flaws. He says, ” it is natural that the elderly should pay more of these costs themselves. ” This could cause many problems if it was actually applied. Cutting services that insurance companies cover may seem like a great way to cut costs, however there are always going to be people that will not be able to pay for extra services and if these things are not taken care of may end up costing more in the end.
This is really not a practical solution. Also the author make the statement that medical care spending by the elderly is more than nine times that of a person nineteen years and younger. However there is nothing to show how these figures are calculated or what they draw ! upon. No definition of medical care is listed and therefore this data is difficult to really interpret. One point that the author makes is that when doing health care reform the elderly can not be dealt with in isolation and this is a very good point.
Although Cutler is making the point that the aging society is the major problem for the extreme cost to health care at least he realizes that all of society needs to be considered when thinking of cuts. However, his over all approach seems to be cut funding and insurance to those that utilizes the system the most. To me this seems to be a very dangerous solution. Charging seniors significantly more for health care could really add have a very negative consequence. There should have been more research done to see what effect these ideas for cuts and reallocation would really have on a society.