Influences on Providers Assignment Example | Topics and Well Written Essays - 500 words

Influences on Providers - Assignment Example Healthcare expenditure is covered by several sources of funding including out-of-pocket payments where individuals pay for services through deductibles and copayments (Musgrave, 2006). Another source is the private health insurance coverage like the point-of-service plans (PPOs) and health maintenance organizations plans (HMOs). The US government expenditure on healthcare is incurred through government health plans like Medicare, Medicaid, Military Health system and Children’s health insurance program (CHIP) (Kronenfeld, 2002). Unemployment rate in the US has increased over the recent past. Unemployed individuals increase the financial costs of the health care providers since they may not be able to pay the deductibles and copayments. The high unemployment rate will increase the federal spending on Medicaid health care program (Sultz & Young, 2011). Increase in employment will lead to more employer financed healthcare insurance thus reducing the costs of government sponsored programs. Employees are more willing to purchase healthcare insurance once they are offered benefits like income tax allowances by the employee (Sultz & Young, 2011). About 46.3 million citizens representing 15.4 percent of total population have no insurance coverage. The number of uninsured citizens has been increasing due to lack of employment and ineligibility in government sponsored health care schemes (Sultz & Young, 2011). When the uninsured are unable to pay for the full medical costs, such costs are added to the provider’s costs. The increase in healthcare insurance will lead to early detection of the medical conditions thus a reduction in the overall medical costs incurred by the healthcare providers will be possible (Musgrave, 2006). The US economic downturn has increased the overall unemployment rate in the economy. The recent economic meltdown and financial crisis have led to