The Sustainability of the Texas Health Care System
May 9, 2012
A Report on Sustainability: Texas Health Care System
With a focus on Health Insurance, Medicaid, Medicare, Pharmaceutical Medicine, Staff and Drug Shortages
Health Care System’s Problems and Solutions
This report is about the Texas health care system, which is currently having difficulties in sustainability due to the breakdown of systems affected by the economic crisis that started in 2008. An issue that will be analyzed includes health insurance becoming less affordable for the citizens of Texas. The amount of money the health insurance companies are paying for medical bills is not enough when the patient is paying for the majority of the health care costs.
Medicaid programs will be analyzed to evaluate the health care struggles to support low-income families and disabled people. Sub-systems of Medicaid programs reviewed will be lack of support from physicians. Other systems that are flawed are the loss of benefits; a worsening health care need in an aging population that cannot meet other economic needs; and poor quality of care.
Budget experts have considered Medicare to be the one of the biggest financial problem facing our country. $430 billion dollars a year is taken from the federal budget and given to Medicare and it is being predicted that the government will not be able to cover its bills by 2029. (40% of the federal budget goes to Medicare, Medicaid, and Social Security) If we are unable to get health care costs under control the budget deficits will continue to explode. It is becoming clear that the unsustainability of the healthcare system is only becoming worse.
Recommendations will review how changes these issues are starting to be acted upon and will continue to be made in the future years.
Texas has over 200 health insurance companies, yet it has the highest rate of uninsured people. In 2008, the total uninsured population in Texas was 6.1 million people with ages 25-34 being the highest percentage group.
An associate professor of medicine at Harvard expresses his analysis about the people who buy insurance are now being faced with the health reform’s new exchanges, and they will get insufficient coverage. The costs for insurers will increase, the quality of health care will decrease, and the Texas health insurance companies will struggle to stay above average financially. According to the Council for Affordable Health Insurance, premiums in Texas have amplified 40% in five years. With Texas being considered the third highest tax rate, by 2014, taxes will be enforced on people without qualifying coverage of more than $695 per year up to the maximum of 2.5% of household income.
Employers are becoming less dependable sponsors of insurance for their employees because it is now difficult to finance. Thirty-two percent of Texas small businesses offer health insurances to their employees, compared to large businesses that receive 89% insurance. Without a funding, employer-paid coverage is starting to increase the unsustainable lower-income families.
Health Insurance Solutions
To decrease the uninsured rate President Obama passed the Patient Protection and Affordable Care Act (PPACA) in March 2010. The uninsured rate reduced from 6.1 million people to 2.3 million. However, according to CQ Researcher, the new health care reform will create structured insurance companies and plans where employees without employer sponsored insurance can buy coverage, and it will offer benefits and support to help low and middle income families buy health insurance. The health reform is still not affordable for some people with preexisting illnesses...
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