Question

How does healthcare reform negatively impact managed care plans?

Answer 1

Greetings for the day,

How does healthcare reform negatively impact managed care plans?

The growth of health care spending as a share of Gross Domestic Product (GDP) has been one of the defining features of the US health care sector. Real gross domestic product (GDP) decreased in all 50 states and the District of Columbia in the second quarter of 2020, as real GDP for the nation decreased at an annual rate of 31.4 per cent, according to statistics released by the U.S. Bureau of Economic Analysis.

The problem of controlling the growth in health care spending and ensuring its efficient use is particularly urgent because health spending forms a significant part of US government expenditures, putting pressure on other government priorities and tax rates, and making coverage expansion expensive.

Managed care has introduced various changes to the healthcare system,

Some are:

1. Cost-effectiveness

2. Access to care

3. Quality of care

These are the main components of the U.S. healthcare delivery system.

Because these changes will contribute to GDP so these points are generally in the limelight so that maximum can avail the benefits.

These changes have affected how healthcare administrators and clinical practitioners perceive the impact of managed care on healthcare delivery practices. The various survey has been conducted to identify the impact of managed care plan on healthcare reform.

Although the growth of health insurance premiums slowed significantly, patients and physicians warm-up at managed care controls.

If we consider the current pandemic situation most of the person is motivated to enrol themselves in these health care programs. Because we never know when this uncertainty can occur. So to secure himself everyone plan for these healthcare problems.

There is a regular update that lacking health insurance is associated with decreased access to care, delays in receiving care for treatments, and subsequent negative health outcomes.

In most of the cases, we have identified that lack of health insurance is a result of the fluid nature of insurance coverage. Throughout a year insurance may be gained or lost due to changes in employment, job loss just because of current pandemic, eligibility status, financial status, or other reasons. We refer to these problems in insurance coverage as insurance instability. This phenomenon is documented among children, senior citizens (because these are the people who are highly affected) demonstrating the insurance instability reduces the use of preventive care and continuity of care for chronic medical conditions. The frequency and impact of insurance instability in adult populations are less well described but has the same potential negative impact.

The Patient Protection and Affordable Care Act aims to decrease the proportion of the population who are uninsured so that maximum people can avail the benefits of health care programs and med claim policy which are freely available.

These government aims are to be achieved through Medicaid expansion, insurance market reforms, and the creation of subsidized insurance and health insurance exchanges so that maximum can get the benefits are recovered from this situation easily. With expanded coverage options and more inclusive eligibility requirements, the expectation is that insurance coverage will not only increase but will become more stable.

So these are some points which show that healthcare reform negatively impacts managed care plans.