Significance of Insurance Industry on the American Health Care System

Significance of Insurance
Industry on the
American Health Care System
By:

Introduction
• Insurance industry is a major stakeholder in the American
healthcare system.
• It played a significant role in the development of the
Affordable Care Act between 2014 to 2018, contributing
an annual fees of $47.5billion to the federal government.
• Aging population challenges American healthcare system
in terms of long term and acute care
(Gaffne,Woolhandler, Angell & Himmelstein, 2016).

Single Payer System
• It is a an insurance system where a single
government plan provides insurance cover to all
the citizens.
• In a single payer system, new practices and
policies can be implemented, communicated and
evaluated with increased convenience compared to
the US soloed, multi formulary and multi payer
system (Chaufan, 2015).

Single Payer System: Cont.
• Single payer system provides high quality care to
Veteran Administrators at relatively reasonable
cost.
• It is more convenient medical system compared to
multi payer system.
• A single payer insurance plan provides high
quality medical care based on health plans and
reduces paperwork dramatically.