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The failure of America’s health care system

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  1. Introduction
  2. The phenomenon of managed care
  3. Understanding of a few key terms
  4. The history of managed care
  5. The wartime rise of employer-sponsored health care
  6. Positive financial effect on the costly American health care system
  7. The practice of giving a hospital a global budget
  8. Renovating the landscape of health care
  9. The practice of the gag order
  10. Problems inherent with managed care
  11. The American public
  12. Herzlinger's great attack
  13. The opinions Friedman and Herzlinger
  14. The potential weaknesses of a consumer-driven system
  15. The phenomenon of managed care
  16. Conclusion

America's health care system is in trouble. More money is spent on health care in the U.S. than any other country in the world. Our terminally privatized and competitive health system is the most expensive, yielding some of the poorest results. Health care spending is spiraling out of control, and our attempts to forestall this waking giant have proved ineffective. According to the most recent figures of the Congressional Budget Office, almost seven percent of our gross domestic product was spent on Medicare and Medicaid in the year 2004. ?American [health care] is characterized by both feast and famine: it leads the world in delivering high-tech medical miracles but leaves 45 million people uninsured.? David Broder, of the Washington Post ascertains that costs for health care are rising at a rate four times faster than wages in America. Rising private-health insurance costs are being differed to employers, which are then shifting the cost onto the employees via higher premiums or lower wages. Increases in insurance premiums are decreasing the availability of employment-linked insurance plans.

[...] According to a Kaiser/Health Research and Educational Trust-sponsored survey conducted in of total enrollment in health plans was to the less-rigid PPO form of managed care.[15] The fact that Americans seem to prefer more choices when it comes to their health care plans suggests that a consumer-driven system with unlimited choice would fit well with established values. The history of managed care is a story wrought with good intentions. A system that began almost by accident was promulgated by unions that wanted affordable health care for their workers, lawmakers that wanted to curb health-related spending and physicians that were concerned with aligning their economic goals with their duty to serve their patient.[16] Managed care began during World War II with the industrialist Henry J. [...]


[...] Now that we know the potential successes of a consumer-driven plan and the pitfalls of managed care plans, it would be helpful to look at the Claremont Colleges health insurance offerings to see how they illustrate the clash between managed care and HSAs. Faculty and staff of the Claremont Colleges are offered a choice of two HMOs, one PPO and one high-deductible health plan (HDHP), which is in essence an HSA.[58] The Blue Cross HMO and Kaiser HMO both offer 100% coverage on most services and a low maximum out- of-pocket expense for a very low monthly premium. [...]


[...] ?Quality of Care in Investor-Owned vs Not- for-Profit HMOs.? Journal of the American Medical Association 282 (1999): 159 Nov . ?High Price of Health.? Frontline. Public Broadcasting System Apr Oct Robinson, James et al. End of Managed Care.? Journal of the American Medical Association 285 (2001): Oct . ?High Price of Health.? Frontline. Public Broadcasting System Apr Oct Solomon's Dilemma.? Frontline. Public Broadcasting System Apr Oct Anand, Geeta. Big Secret in Health Care: Rationing Is Here.? Wall Street Journal Sep Nov . [...]

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