Statistics show that hospitals bore more than $5 billion in costs in treating uninsured patients. This creates a huge financial pressure on them and there is no alternative but to have the uncompensated care costs to be charged to the insured patients. As a recent article from the California healthcare foundations quotes "They prepare for this reality by: Setting prices for the insured that are higher than expected costs.." [CHA] These financial details clearly indicate that immediate action has to be undertaken in terms of restructuring the healthcare system so as to facilitate hospitals in managing the overwhelming burden they are expected to handle.
Diminishing Insurance Coverage
One further reason that contributes to the problem is the declining rate of insurance coverage offered by corporates to their employees. The trend seems to be worsening as statistics indicate. Job-based coverage, which stood at 60.4% in 2003 has dropped to 59.8% in 2004. The percentage of uninsured workers seems to be on a steady increase with the rates going up from "17.5 to 17.8 among fulltime workers and from 23.8 to 25.0 among part-time workers."[AFHR] "The costs of health care benefits continue to outpace inflation and wage growth, leading employers to cut back on benefits and eligibility while increasing employees' shares of cost." [Jean Yoon] Thus, the existence of a vicious cycle is fairly obvious. On the one hand, the mounting insurance costs discourages people from opting for insurance while on the other hand treating the uninsured leads to hospitals transferring uncompensated costs to the insured people and consequently the rising premiums.
Conclusion
Providing quality healthcare is the ultimate aim of any government. Though it is an undeniable fact that hospitals are overwhelmed by their...
Thus, the closing down of emergency wards and turning down medical attention to uninsured cannot be accepted under any circumstances. Having said this, however, it is also imperative that the government take immediate measures to set right an ailing healthcare sector by providing a comprehensive insurance plan and care coverage to all citizens without having to burden any particular strata of the society with the financial implications. The Californian government is rightfully addressing this situation with its new health care policy developed with the motto of "shared responsibility, shared benefit" where every citizen is entitled to quality care without anyone being unduly affected.
Bibliography
State of California, "Gov. Schwarzenegger Tackles California's Broken Health Care System, Proposes Comprehensive Plan to Help All Californians," Accessed on Apr 15th 2007, Available at, http://gov.ca.gov/index.php?/press-release/5057/
Author not available, "Top 10 Indicators: California's Health Care System Is Broken," Accessed on Apr 15th 2007, available at http://www.chhs.ca.gov/docs/Top%2010%20Indicators%20010807.pdf
California Hospitals' Financial Condition: On Life Support," California Healthcare Association, June 2004
Dr.Barry Simon, "Emergency Rooms on Front Line of Health Care," Contra Costa Times, 12/22/06
Jean Yoon, E. Richard Brown, Shana Alex Lavarreda and Sungching Glenn, Health Policy Research Brief: "One in Five Californians Were Uninsured in 2005 Despite Modest Gains in Coverage," UCLA Center for Health Policy Research, Oct, 2006
AFHR, the Uninsured and Rising Health Costs," Alliance for Health Reform, January 2006
