Introduction to the U.S. Health Care Delivery System: Managed Care

Introduction to the U.S. Health Care Delivery System: Managed Care
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Introduction to the U.S. Health Care Delivery System: Managed Care
Managed Care and Where did it Come?
Managed health care is specific to the United States and refers to health deliverance and health insurance to reduce costs (Bindman, 2018). It is an organized system that attempts to eliminate or minimize medical services that deem ineffective or needless (Yeung et al., 2017). It controls the costs and the quality of health care in the U.S. Through the provision of several pioneering economic incentives, the physicians and patients are encouraged to opt for relatively low-cost health care reforms. For example, before using the emergency rooms, institutions may need patients to acquire preauthorization to obtain Care for their conditions (Brown, 2018). Also, another means of controlling prices is by regulating the salaries of the physicians. The ones successful at minimizing costs are rewarded, whereas the ones who fail get punished.
Current State of Managed Care in the U.S. Healthcare System
Its origins in the US are traced to the 19th century when few physicians in a different region of the U.S. offered prepaid medical services to the association of workers, unions, and the members of fraternal orders. All the participating parties had to pay a minimal annual fee to get unlimited access to the physicians' medical services (Dumontet et al., 2017). Different sectors, such as mining, lumber, and railroad, managed their medical facilities or signed contracts with physicians and medical groups to provide Care for their labor force. In the 1930s, throughout the Great Depression, the practice of prepaid contracts between employee associations and employers was quite common. In the early 1970s, the government and some private companies began promoting their employees to join health care groups of prepaid nature. However, it was observed that the growth in this sector remained slow.
During the 1980s, employers started adopting managed Care to control the soaring health-related costs. The enrolments in managed Care started to increase drastically. Today most of the privately insured Americans are covered by management care of some form. In 2010, President Obama signed the Patient Protection (PP) and the Affordable Care Act (ACA) to reduce the financial strain on low-income earners. It was made possible by providing health insurance, cost-sharing, and tax credits. Its primary objective was to work for the public's welfare, reduce illnesses, and the overall cost incurred on treatment.
For the United States economy, the health care sector makes up the most substantial part. It has become essential for the people and their well-being but what makes it rudimentary is its budgetary implications. This sector is now responsible for 11% of the American labor force and 24% of government spending (Duhig et al., 2018). Health care accounts for the most extensive nonwage compensation and the most prominent category for consumer spending. The recent trends show the addition of healthcare treatments, higher coverage, and increased prices (Ash et al., 2017)...