By Eve Anderson
October 23, 2012
The impacts of the recession upon the American health economy have been far reaching. Most obviously, loss of employment has led to significant reductions in the numbers of individuals covered through occupational health insurance schemes.
Further, projected growth in healthcare provision has not been achieved. In 2009, spending on health rose only 4%. This percentage, equalling approximate per capita spend of $8,086, represents the lowest level of growth within the National Health Expenditure Accounts for 50 years.
Unemployment and the American Health Economy
With much of America’s health care funded through occupational health insurance schemes, a direct correlation exists between loss of employment and loss of health insurance. As per the Commonwealth Biennial Health Insurance Survey (2010), 57% of Americans who lost their job during the recession period of 2008 to 2010, also lost their health cover.
Unemployment has also denied dependents health insurance. Losses, including linked cover for dependents and above inflationary rises in insurance costs (particularly for elderly and disabled dependents), have led to significant reductions in the numbers of individuals benefiting from third party funded private health cover.
Further, loss of insurance has not been limited to those who have lost employment altogether. The director of the Urban Institute’s Health Policy Center, John Holahan, has highlighted that peoples’ health provisions have also been affected by forced job changes. This, often underrepresented, group of people include non-elderly Americans being forced into part-time or contract work and their dependents.
Though Holahan acknowledges that the Affordable Care Act 2014 will make significant headway in reducing the link between employment and health coverage, he identifies the need to continue to develop mechanisms for supporting individuals in the meantime:
‘It is likely that employer-sponsored insurance will continue to decline because premiums will almost certainly grow faster than wages and salaries and the number of uninsured people is likely to increase’.
America’s Inability to Meet Projected Growth Targets in Health: A Vicious Funding Cycle
With healthcare premiums continuing to increase faster than income levels, individuals are increasingly reducing levels of private cover or relying solely on government provision, such as Medicaid and Medicare. Thus, the government has been forced to directly target increased levels of spending towards basic healthcare provision.
In a vicious cycle, increased pressure on State and Federal governments to fund basic healthcare treatment has reduced the government funds available to grow and develop healthcare services. Thus, though growth in healthcare has remained low during the recession, government spending has increased.
Though, while government funding on healthcare development has slowed, private medical advancement has not stalled. Technological advancements continue to lead to increased life expectancy, improved long-term prognoses and more rigorous treatment plans. Such treatments, however, are not necessarily cost-effective. Advanced medical technologies and innovative drug programs, for example, can end up costing far in excess of either budgeted government spend or an individual’s cumulative insurance premium. Such treatments, therefore, have been directly linked to rising health insurance costs, which, for many, cannot be met, nor used to support the private health economy.
Recognizing the Role of Healthcare Provision in Economic Recovery: The American Recovery and Reinvestment Act 2009
This legislation, commonly termed the ‘economic stimulus act’, directed $787 billion of government money collected through taxation towards economic regeneration. Of the $787 billion, $149 billion was earmarked for investment in healthcare.
Medicaid, allocated $89 billion of the total $149 billion spend, was the biggest recipient. Established to provide reduced or free healthcare insurance to those who are unable to pay, Medicaid has been heavily subsidized during the recession. The money, which has been used to provide temporary Federal assistance to State Medicaid programs, has enabled the provision of some publicly funded health insurance provision to continue.
COBRA, allocated $25 billion of the total $149 billion spend, was another significant recipient. This money was used to provide a health insurance premium subsidy to those who lost their jobs during the recession. The subsidy (65% of premium) provided significant relief for those who were unable to sustain payment of their COBRA insurance premiums whilst unable to find work.
Beyond support with medical insurance premiums, the act also directed funds towards medical technology and research. $19.2 Billion was directed towards the establishment of a national health IT system and $17.8 billion was directed towards several scientific health research and development projects.
Beyond the American Recovery and Investment Act 2009
As the time periods for Federal support under the economic stimulus act come to an end, and the transition towards the Affordable Care Act continues, States face increasing uncertainty over how and whether to fund treatments under Medicaid programs.
A recent report by Moody’s Investment Service identified three key risk areas facing America’s not-for profit healthcare services. First, the report identified the potential difficulties for not-for-profit providers in raising capital. Second, the report recognized the likely difficulties faced by providers in securing satisfactory insurance reimbursement. Finally, the report identified the risk that States may use the Supreme Court ruling on healthcare reform to opt out of further Medicaid enrollment programs. As per Steingart:
‘By limiting expansion of Medicaid coverage, the ruling blunts the impact of one of the law’s few credit positive features’.
Tuesday, October 23, 2012
Friday, October 19, 2012
The Feel Good Factor of Random Acts of Kindness
By Eve Anderson
October 18, 2012
In a world that is pretty much drowning in debt it is difficult to imagine why people donate money to charity, causes, individuals and general pleas for cash.
When people have so much going on in their own lives in terms of making ends meet and having enough money to survive the week, month or whatever it may be, the truth is that people still find the finances to give their last dime to a stranger than do nothing.
Such examples of the generosity of strangers are in the wake of terrible disasters and tragedies like the Boxing Day Tsunami and 9/11 one of the only ways that people felt they could help and show support was by donating money. When children go missing or are murdered often you will hear that a fund has subsequently been set up to raise money for a cause of some nature – this doesn’t bring the child in question back but people demonstrate their support through giving. This support is perhaps key to understanding what drives people to donate to others in need as it is human trait to help those who are struggling as a gesture that they aren’t alone in their crisis.
Sweet charity
Donating money isn’t just restricted to the rich and famous either – those with very little spare cash still have the will to donate to charities or causes or individuals that really touch their values and belief systems.
Americans are a generous country which is demonstrated via a report by the Atlas of Giving stated that in 2011 Americans donated $347 billion which was a 7.5% rise from 2010. The company records and forecasts donations to charity and it observed that such giving was rising faster than the rate of the economy for 2011. Add to this that earlier this year it was announced that American student loan debt rose to over $1 trillion which is more than credit card, online loan, car debt, in fact it is above any other type of debt in the US apart from home mortgages. To think that people of such a young age are in such debt and yet up to 90% of the US population still gives to charitable causes on top of making loan repayments is astounding.
Ultimately Americans want to help others out and providing your cause is reputable then you are likely find support in kindred spirits out there.
Motivation behind donations
Research by charities into what motivates people to donate would have us believe that the decision making process isn’t a long one. Charities say that making a donation is a spontaneous action which would seem to indicate it comes from our deep seated desire from within to help as people trust their guts much more than other sorts of purchases.
In the wake of the internet and online payments making donations has never been easier, which really helps to facilitate people’s generosity. Cashless payment methods in particular are now much more commonplace and people are much savvier about conducting financial transactions online, which makes for a more conducive charitable environment all round.
Charitable appeal
What has also been observed is that people have a propensity to donate more to a single person, or the cause of a single person than to a group or population. One person’s story has the ability to resonate more with individuals and as such the cause of single suffering is something that human beings relate to more.
Whether you’re an optimist or a pessimist carrying out a random act of kindness will undoubtedly make you feel good. The spontaneity of making a donation to a cause that appeals to you will not have the same guilt repercussions as an impulse credit card purchase on yourself. In fact quite the opposite the effects of your generosity will really help someone to get one step closer to being out of a bad situation or help someone achieve something that will make a difference to their life or the lives of others close to them.
Donating really is a feel good activity and whilst for some it will leave you wishing that you could do even more often distance or practicalities prevent this so just be confident that you were able to do all you could or all that was asked.
October 18, 2012
In a world that is pretty much drowning in debt it is difficult to imagine why people donate money to charity, causes, individuals and general pleas for cash.
When people have so much going on in their own lives in terms of making ends meet and having enough money to survive the week, month or whatever it may be, the truth is that people still find the finances to give their last dime to a stranger than do nothing.
Such examples of the generosity of strangers are in the wake of terrible disasters and tragedies like the Boxing Day Tsunami and 9/11 one of the only ways that people felt they could help and show support was by donating money. When children go missing or are murdered often you will hear that a fund has subsequently been set up to raise money for a cause of some nature – this doesn’t bring the child in question back but people demonstrate their support through giving. This support is perhaps key to understanding what drives people to donate to others in need as it is human trait to help those who are struggling as a gesture that they aren’t alone in their crisis.
Sweet charity
Donating money isn’t just restricted to the rich and famous either – those with very little spare cash still have the will to donate to charities or causes or individuals that really touch their values and belief systems.
Americans are a generous country which is demonstrated via a report by the Atlas of Giving stated that in 2011 Americans donated $347 billion which was a 7.5% rise from 2010. The company records and forecasts donations to charity and it observed that such giving was rising faster than the rate of the economy for 2011. Add to this that earlier this year it was announced that American student loan debt rose to over $1 trillion which is more than credit card, online loan, car debt, in fact it is above any other type of debt in the US apart from home mortgages. To think that people of such a young age are in such debt and yet up to 90% of the US population still gives to charitable causes on top of making loan repayments is astounding.
Ultimately Americans want to help others out and providing your cause is reputable then you are likely find support in kindred spirits out there.
Motivation behind donations
Research by charities into what motivates people to donate would have us believe that the decision making process isn’t a long one. Charities say that making a donation is a spontaneous action which would seem to indicate it comes from our deep seated desire from within to help as people trust their guts much more than other sorts of purchases.
In the wake of the internet and online payments making donations has never been easier, which really helps to facilitate people’s generosity. Cashless payment methods in particular are now much more commonplace and people are much savvier about conducting financial transactions online, which makes for a more conducive charitable environment all round.
Charitable appeal
What has also been observed is that people have a propensity to donate more to a single person, or the cause of a single person than to a group or population. One person’s story has the ability to resonate more with individuals and as such the cause of single suffering is something that human beings relate to more.
Whether you’re an optimist or a pessimist carrying out a random act of kindness will undoubtedly make you feel good. The spontaneity of making a donation to a cause that appeals to you will not have the same guilt repercussions as an impulse credit card purchase on yourself. In fact quite the opposite the effects of your generosity will really help someone to get one step closer to being out of a bad situation or help someone achieve something that will make a difference to their life or the lives of others close to them.
Donating really is a feel good activity and whilst for some it will leave you wishing that you could do even more often distance or practicalities prevent this so just be confident that you were able to do all you could or all that was asked.
Subscribe to:
Posts (Atom)
-
Most scams attempts involve one or more of the following: Email or text from someone that is not local to your area. Vague initial inquiry,... -
Before anything, what is altruism ? Altruism is referred to as the unselfish concern for other people’s wellbeing. Daily Life is filled ...
-
Like most other people, do you have a common question in your mind whether people help others without expecting something in return? ...
