LP4 Assignment LP4 Assignment: Financing Health Care This assignment will assess the following competency 5. EVALUATE key issues associated with health care financing. Directions: In a 4-5 page paper,...

Financing Health Care
Introduction
Health care financing means expenditure on health according to health need of the
person. Health financing basically is collection of revenue from different group of person such as
household, businessman and external sources. This system creates pool of person who provides
the safety of life of risk to their members on any incident. It provides the safety to the members
of the family through the pooling of funds generated from different members of the group. This
pooling ensures the members about any health risk associated with them and their family
members (Eastaugh, 2004).
Preventing the person from poverty, health risk is the main function of health care
financing scheme. The government and private institutions are involved in this function for the
defined objectives. Governments use a variety of financial and nonfinancial mechanisms to ca
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out their functions, including directly providing services; financing, regulating, and mandating
service provision; and providing information.
A substantial literature is devoted to the various sources for financing health services and
the economic and institutional effects of using these sources in terms of efficiency, equity,
evenue-raising potential, revenue administration, and sustainability (McLean, 2002). In this
context, the present report aims to demonstrate the pattern, impact and administrative cost of
financing.
Alternative sources for the healthcare financing in US
The U.S. Patient Protection and Affordable Care Act of 2014 aims to implement health
care reforms for increasing the availability, affordability, and use of health insurance. According
to department of health services, the health care cost in US is very high and thus heavy health
care expenditure has caused strain on economy of the US government (Eastaugh, 2004). There
are mainly three sources for health care funding in the U.S:
Private Companies:
In the United state there are various private insurance agency established as profit or not
for profit making organizations. They provide health insurance to public at large. Generally
employer of an organization has tied up with this agency for their employees. The organization
takes the group insurance policy for the health benefit of employees against specific diseases
(Jakovljevic et al., 2016).
Government Agency:
The US government provides health care facility through following agencies:
 Medicare, which funds health care for the elderly, the disabled, and people receiving
long-term treatment with dialysis.
 Medicaid, involved in funding health care for certain people who are living below the
poverty level and/or who have disabilities.
 State Children’s Health Insurance Program: This program was designed to provide
coverage for uninsured children when their family's income...