Financial Analysis || Assignment

Running Head: FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
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FINANCIAL ANALYSIS1
Introduction
The US healthcare system is financed with various resources. The US healthcare system
is expensive for the inclusion of advanced technology. The economy of the American health care
system is a mix of public and private insurance. According to researches, the US government
provides the coverage for 53 million generally through Medicare, and 62 million lesser-income
through Medicare. This paper is going to picturise the evolution of financial healthcare of the
United States. It will reflect on the government influence on healthcare finance along with the
delivery and policy in the field of healthcare finance (Cms.gov, 2020)
.
Evolution of the financial system of US healthcare
The presidential election during the year of 2008, the Senator Hillary Rodham Clinton
suggested for the enactment for the universally compulsory insurance plan for health as a part of
the entire campaign. During the 19th century, the concept of private health insurance was
established in the USA. During this time, some insurance agencies provided a response for the
public demand for coverage from accidents related to rail and steamboat (Jacobs & Skocpol,
2015). During the year of 1940, the private health insurance agencies only covered 6% of the
entire population of American for hospitalization (Centers for Medicare & Medicaid Services.
2015). However, by the end of 1941, the rate increased up to 12.4%. The Stabilization act during
the year of 1942 implemented price control on recruiters by lowering the increased employee
wages.
The Social Security Act (1935) provided the allowance of including the medical care cost
into the monthly support payments. However, the rate was too low that the employees could

FINANCIAL ANALYSIS2
hardly afford the basic requirements. During the beginning of 1960, John Kennedy was elected
as the president. He proposed the modern version of the Medicare program by introducing the
King-Anderson bill (Stabile & Thomson, 2014). The bill provided the allowance of payment for
hospitalization of the senior people via the social security system that covered almost 14 million
beneficiaries of social security crossing the age group of 65. During the beginning of the 1970s,
the health expenditure was appearing as a complex problem with the new administration in
Washington (Shazali et al., 2013). Moreover, the 19th century is observed with various legislative
initiatives that influenced the health insurance industry within both the public and private fields.
According to the Congress enacted the Balanced Budget Act,
 The private plans expanded alternatives including a fee-for-service program in the
Medicare program.
 The act also generated an original insurance program of health for the children as the
Children’s Health Insurance Program.
 Thirdly, the act clarified the provision that was comprised in HIPAA 1996 for the long-
term insurance care.
Entering into the 21st century, the Long-Term Security Act was passed by Congress. This act
provided the founding of a package under which the care insurance of long-term would be
accessible to federal personnel, an associate of the uniformed equipped facilities and citizens and
military pensioners (Cleverley & Cleverley, 2017). The year 2012 is observed with some
remarkable activities of health by the federal government including Medicare and Medicaid,
HIPAA, COBRA, HMOs, coverage of prescribed drugs, PROs, TEFRA, and ERISA.