Health Care – Facts About the American Health Care System

The American health care system is founded on the free market capitalist model. Because of this, majority of the health services in the US are provided not by the federal government but by independent companies. An individual can obtain health insurance coverage directly on his own or as part of the employment benefits provided by employers.
• Free Market – In the United States, health services are provided in the context of a free market where people are free to choose their own service providers, hospitals, facilities, and related services. Although many residents enjoy the federal government’s Medicaid and Medicare programs where elderly and poverty-stricken individuals get medical insurance, there is no universal type of health care provided by the government.
• Government Regulations – Most health products and services are being monitored and regulated by the government. The drug development and testing process, for example, is under the jurisdiction of the Federal Food and Drug Administration (FDA). This is to make sure that pharmaceutical companies strictly comply with the mandated efficacy and safety standards. Without FDA approval, no new form of medication may be released into the market.
• Regulation by Private Entities – In some cases, private regulation is more stringent than what the government imposes. These organizations are created under the supervision of the American Medical Association (AMA) to provide certification and testing by qualified doctors; and specialist accreditation. Medical schools must likewise get accreditation form the Association of American Medical Colleges (AMCC).
• Costs – According to the National Center for Health Statistics (NCHS), US residents spend at least twice the amount of money that residents of other industrialized countries do for health services. On the average, this translates to over $7000 for each American. There are several factors that contribute to the high cost of health services in the US such as the cost to access state-of-the-art technology, rising administrative costs, and the passed-on cost to cover for unpaid hospital bills left by patients unable to pay.
• Insurance – The National Center for Health Statistics says that about 36% of the cost in the United States is shouldered by insurance firms. Based on the agreed and established payment schedule, the insurance firm pays for a certain percentage of the medical care cost. They are also to provide protection from sudden costs arising from emergencies.
Many companies offer insurance coverage to their employees as part of their benefits or compensation package. They sometimes pay for the premium or a portion thereof. However, it is estimated that over 43 million Americans are without any type of medical plan to fall back on in case of emergencies. They have to personally shoulder the entire cost of health care services when the need arises.