State Health Policy Analysis

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State Health Policy Analysis
William Bythwood
MHA620 Health Policy Analyses
Professor Saran Tucker
March 7, 2011

State Health Policy Analysis
Abstract: The rises of health cost have put strains on State, Federal and employers budgets and have severely hurt US families’ income in recent years. An analysis of State health policy by the federal government projects that premiums for insurance for employer based programs will increase from 12,298 in 2008 to 23,842 by 2020. This would be a 94% increase in insurance cost. It is projected that health reforms by the federal government will help states reign in health cost and slow the growth by 1% in all states by 2020. This would save $2571 per year per family under an employer sponsored plans for family coverage. It is thought that if the states and federal government can control growth by 1.5 percentage points many agree in the insurance industry would save $3759. This paper will look at and analyze a health policy for the state with the help of the federal government to control administrative cost and provide cost control and quality and access. Various suggestions on what state health policy should look like will be addressed and a concrete suggestion will be made to ensure the values of an excellent state health policy plan. (The commonwealth fund August 2009)

As a result of a declining United States economy many States are being asked to do more with less when it comes to health care. Some States have come up with their own Universal Health plans such as Massachusetts and Washington. Other States are experimenting with federal waivers to expand Medicaid and some States are looking at ways to improve managed care. Rising health insurance premiums have also put States in a bind and are hurting the middleclass. Retail clinics have risen as a result of lack of access and affordability. This paper will look at analyze the stakeholders involved in States push for Universal Health, the expansion of Medicaid as a way to control cost and cover the uninsured, managed care and Retail clinic and how the States look to them to improve access and quality of care. States are concern with controlling cost without giving up quality in health care. Many States feel if they can accomplish reducing cost and providing greater access to individuals and children they can save money in the long run. States must consult with all of the stakeholders if they are going to implement a successful health policy. Monthly meeting must be held with providers, hospitals, homecare agencies, the various foundations of health insurance plans and Centers for Medicaid and Medicare. Other groups that have a stake in how health policy is formed for the State department of health, mental health and public health advocates.

The problem is many States have high unemployment rates and loss of income have led many people to turn to Medicaid for their health coverage. Unfortunately the rate that the States have collected tax revenue has gone down and enrollments of Medicaid and the uninsured have increased. Medicaid enrollment grew from December 2007 to December 2009 by 13.6 percent o about 6 million¹. According to the Kaiser commission if there was not a safety net of Medicaid the uninsured would have grown to 50 million Americans in 2009.² States are looking for ways to decrease cost but due to the increase in enrollment because of the economic downturn the money the federal government spent on Medicaid went up from $338 billion of the federal budget in 2007 to 359 billion in 2008 and rose to 387 billion in 2009. The increase in the federal budget went up for Medicaid from 6.4% in 2007 to 7.7% in 2009. The money Medicaid spent on medical services grew also as a result of high unemployment from $300 billion in 2007 in 2008 Medicaid spent $318 billion and in 2009 the federal government spent $347 billion. A health policy must be constructed to...
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