The challenges U.S. face in compiling valid data on total health care expenditures
Unlike other developed countries, the U.S. faces some challenges while composing expenditure data on healthcare. To begin with, there is no a single source which is consistent and one that can be relied on (Kominski, 2014). Instead, the data has to be obtained from various sources and then compiled together. This, in return, results in more challenges that could affect the validity of the data. For example, the data obtained is unable to indicate, in some cases, the difference between outpatient and inpatient expenditures (Kominski, 2014). This mixture-up is a common occurrence. Additionally, there is a possibility of double-counting some capital expenditures since primary data is from multiple sources (Kominski, 2014).
Should the government require that these private insurance companies collect and report this data?
Yes. A large percentage of American citizens use private insurance companies to fund their medical costs. In fact, in 2011, it was estimated that about $758.5 billion was the total expenditure of private insurance companies (Keehan et al., 2012). This means that the private insurance companies are in a better position to collect valid information from their interactions with the clients. Making it a requirement for them to collect and report it would increase the consistence and validity of the total medical expenditure.
Spending more on our national wealth on medical care is good, not bad
Health care spending continues to increase in the United States as compared to other nations. It is a good thing. It means that more people are demanding better medical services, and they are getting them (Aaron et al., 2005). Essentially, the increase in the cost of healthcare has resulted in the improvement of the general status of health in the nation (Aaron et al., 2005).The number of chronically-ill patients has reduced in the hospitals, and the percentage of uninsured people has decreased to about 10%, the lowest value for many years (Kaiser Family, 2016). The high expenditure just means that medical demands of the citizens are effectively met.
References
Aaron, H. J., MacLaury, B., & MacLaury, V. (2005). It’s health care, stupid! why control of health care spending is vital for long-term fiscal stability. Growth, 19, 183-227
Kaiser Family Foundation. (2016). Key facts about the uninsured population. Retrieved January 24, 2017, from http://kff.org/uninsured/fact-sheet/key-facts-about-the-uninsured-population/
Keehan, S. P., Cuckler, G. A., Sisko, A. M., Madison, A. J., Smith, S. D., Lizonitz, J. M., & Wolfe, C. J. (2012). National health expenditure projections: modest annual growth until coverage expands and economic growth accelerates. Health Affairs, 32(10), 1820–1831.
Kominski, G. F. (2014). Changing the U.S. Health care system: Key issues in health services policy and management (4th ed.). San Francisco: John Wiley & Sons.
