Overhauling The US Health Care System

Well, it’s official. The U.S. Congress is preparing to tackle the American health care system. Meanwhile, President Obama is anxious to have viable legislation read to sign before the close of 2009.

According to some reports, the following facts are true about health care as an industry in the United States:

For instance, economists working for the federal government predict that public and private health spending will hit $2.5 trillion this year, taking up a 17.6% share of gross domestic product.

It is an unfortunate fact that the American people regularly spend more per capita on health care than any other country. The U.S. Centers for Medicare and Medicaid Services puts the figure at $7,421 per person. At the same time, there have been studies published that indicate that people in the U.S. actually get poorer care than those living in other industrialized countries that currently have national healthcare plans.

Here is a list of those that will pay health care costs, according to percentage paid:

• 35% private insurance
• 19% Medicare
• 15% Medicaid and the State Children’s Health Insurance Program
• 12% Other public funds
• 7% Other private sources
• 12% Paid out-of-pocket by patients

Currently, the U.S. Census Bureau estimates that 46 million Americans do not have any type of health insurance; this accounts for 15% of the population.

Of the total employers in the country, approximately 63% provide their workers with health benefits. This figure was released by the Henry J. Kaiser Family Foundation. Accordingly, if you work at a larger business, the better your chances of having health care coverage, while on the other end of the spectrum, the self-employed will typically pay far more for health coverage than those who get insurance through a standard employer.

Since 2004, the rate of growth for insurance premiums has actually overtaken employee earnings and inflation by a ratio of 4 to 1. This means that employers pay approximately 75% of these costs.