Reducing Cost of Healthcare in the United States.

Assignment Instructions:

Policy Memo Topic: Reducing Cost of Healthcare in the U.S.

Details:
Imagine that you are a state or city government policy, adviser. The governor or city mayor has asked your boss to brief them on a critical problem facing your community (and therefore one of your agency’s top policy priorities). You need to develop a comprehensive policy memo that will give your boss:

(1) The critical background information he/she needs on the issue at hand;
(2) Analysis of the influence of the state/city legislature, the judicial system, and other states/city government agencies on the formulation and implementation of a specific policy;
(3) An evaluation of the influence that interest groups, political parties, and the media have on the policy at hand;
(4) A set of options/solutions for your boss to consider regarding a path forward with all these political players (including pros and cons for each option); and,
(5) A recommended strategy that you want your boss to present to the governor or mayor to win support for your agency’s policy agenda.

To recap, the Policy Memo Page should:

– Clearly and concisely state the problem you are trying to tackle
– Provide a summary of the current policy context / relevant background
– Analyze the influence of the state or city legislature, the judicial system, and other agencies
– Evaluate the influence of interest groups, political parties, and the media
– Present a set of solutions to the problem for your boss to consider, including the pros and cons of each
– Make a realistic recommendation of one of those options and provide further justification for why you are saying that option is the best.
– Cite sources for your memo since this is an academic exercise.
– Sources should include: one book besides the textbook, two articles from scholarly journals (i.e. Foreign Affairs, Harvard International Review), two news articles from major periodicals (i.e. Washington Post, The New York Times, The Economist), and two primary sources (public opinion polls, legislative records, speeches).
-Paper should be free of Plagiarism (Turnitin.com will be used to check for plagiarism).
– The tighter the topic focus, the better the product.

ANSWER

Reducing Cost of Healthcare in the United States

Policy Memo

Date:

To:

From:

Subject: Reducing Cost of Healthcare in the United States

Critical background information

Rising healthcare costs are a major concern in the United States. One of the greatest challenges with the measures to lower healthcare costs is that the measures have damaged the best interest of citizens. In high-income nations such as the U.S. health care costs have been rising rapidly over the years, which has generally been considered unsustainable (Papanicolas, Woskie, and Jha, 2018). The contributions of intimated influences such as technological and scientific progress in medicine and the change in demographics on health care system performance and healthcare expenditure have remained uncertain. The government has made efforts to lower healthcare costs through limiting services, fundholding, bundling payments, pay-for-performance incentives, and lean management. However, these interventions have led to an administrative and societal financial burden that remained unconvincing. Health care expenditure in the U.S. has been higher than in any state. For instance, in 2015, the total healthcare spending reached $3.2 trillion, 17.8 percent of the United Economy (Dieleman et al., 2017). The healthcare spending trends indicate that it has increased to $4.1 Trillion. Although high healthcare spending is not bad, the discussions on the healthcare cost curve have focused on evaluating spending and the factors that have contributed to the increase in spending. Some major factors linked to the high healthcare cost are disease prevalence, the aging population, and technology (Emanuel, 2018).

The top policy priority is reducing the expense of healthcare in the U.S. The policy will focus on reforming the healthcare system in the U.S. to reduce the cost of care. As healthcare spending increases, Americans are not getting the proportionate benefit of healthy and long life (Crowley et al., 2020). The healthcare bills are high; the healthcare choices are too reserved; the out-of-pocket and insurance premiums are climbing faster than the tax revenue and wages. Therefore, the policy aims to reduce health care spending and address the contradiction between low health outcomes and rising healthcare costs.

The Influence of the State/City Legislature, The Judicial System, And Other States/City Government Agencies

Policy formulation and implementation entail several steps that must be undertaken to ensure a given policy’s successful implementation (Sidney, 2017). The first step is to identify the problem that the policy is meant to address. Once the problem has been identified, the next step is to develop a policy proposal that addresses the problem. The relevant state/city legislature must then review the policy proposal to ensure that it is constitutional and does not conflict with existing laws. The state legislature is the primary lawmaking body in the state and thus influences policymaking significantly. The state executive branch is also influential in setting the agenda for the legislature and shaping policy initiatives. The judiciary interprets policies and can influence their implementation.

Cities and counties significantly impact the direction of policy formulation and implementation through the actions of their mayors, city councils, and other boards and commissions. Once the legislature has approved the policy proposal, it must be implemented by the relevant state/city government agencies. Other state government bodies, such as regulatory agencies, profoundly impact policy formulation and implementation.

The regulatory agencies ensure that the policy implemented complies with the legislation (Gerston, 2014). Finally, the policy must be evaluated on a regular basis in order to ensure that it is achieving its desired objectives. Therefore, state agencies, judiciary, and other state government body profoundly influence the formulation and implementation of policy. In many cases, they are the primary drivers of policy change ad actively oversee the policy procedure. The state agencies develop mechanisms and institutions that actively offer oversight of the policy procedures and goals and implement the policy.

Evaluation of The Influence That Interest Groups, Political Parties, And The Media

Healthcare costs are a major concern for both the government and the public. In order to reduce these costs, political parties, various interest groups and the media significantly impact the policymaking process. In policy formulation, these groups help to set the agenda, identify options, and frame issues. Policy implementation provides input on how best to implement the policy, monitor its effectiveness, and advocate for changes (Blank, Burau, and Kuhlmann, 2017). The interest groups, political parties, and the media have a common goal: to ensure that healthcare is affordable in the United States. For instance, the interest groups such as American Hospital Association, American Medical Association, and America’s Health Insurance Plan have offered recommendations on reforming health care and health cost containment strategies. Interest groups have also focused on a specific issue, such as healthcare, and work to influence policymaking by educating policymakers and the public about their issue and advocating for specific policies. Political parties have influenced the policymaking process in several ways. For example, they have been involved in setting the agenda for healthcare reform, identifying options for reform, and framing the debate around reform. They have also played a role in implementation, providing input on implementing the Affordable Care Act and monitoring its effectiveness. The political parties have shaped public opinion concerning reduced healthcare costs by highlighting and raising issues. Through the media, the citizens have learned how the government will influence them while the government will gain feedback on their policies (Hill & Varone, 2021). The media has influenced policymakers and public views regarding certain issues linked to the reduction of healthcare.

Solutions

Promoting Competition

One way to reduce the cost of healthcare is to promote competition among providers. This can be done by increasing transparency in pricing and quality, removing regulatory barriers to entry, and encouraging the use of health information technology (Papanicolas, Woskie & Jha, 2018). This would allow consumers to make more informed choices about their care. More competition could lead to lower prices and better quality of care. Increased transparency would allow consumers to make more informed choices. However, more competition could lead to worse quality of care as providers focus on becoming the low-cost option. There could also be a decrease in care availability as providers are forced to cut costs.

Lowering Prices

One way to reduce the cost of health care is to lower the prices that providers can charge. This can be done through negotiation and regulation. Negotiation can occur between insurers and providers or between the government and providers. Regulation can be used to set maximum prices that providers can charge. Price controls can help to lower the cost of health care, and they can also increase access to care (Jacobs & Skocpol, 2015). However, price controls can also have some negative effects. They can lead to a decrease in the quality of care, as providers are forced to cut corners to make ends meet. However, this can also lead to a shortage of providers, as some may leave the market altogether rather than accept the lower prices.

Equalizing Medicare Payments Across States

Another way to reduce the cost of healthcare would be to equalize Medicare payments across states. There is a wide variation in the amount that Medicare pays for similar services in different states. This creates incentives for providers to locate in high-paying states, which drives up the cost of care. By equalizing payments, we can help to level the playing field and reduce the overall cost of healthcare. Equalizing Medicare payments could help reduce healthcare costs by creating a more level playing field for providers (Azar, Mnuchin, and Acosta, 2018). This could lead to lower prices and reduced costs for patients. Another potential advantage is that it could help to improve access to care, especially in rural and underserved areas. This could benefit Medicare beneficiaries who live in states with lower payments, as they would have greater access to providers. However, equalizing payment can lead to provider consolidations and closures in high-cost areas, reducing access to care. Another limitation is that it could shift costs to patients through higher premiums and out-of-pocket costs.

Recommended Strategy

The most appropriate strategy to promote competition is to reduce healthcare costs. Competition in healthcare offers the most effective mechanism for lowering healthcare costs. Ideally, competition eliminates inefficiencies that lead to the high cost of production and high cost of healthcare delivery. The United States can rely on completion to control costs and improve care quality through innovations. For instance, healthcare organizations without local competitors typically charge higher, thus increasing healthcare experiences, which drives up insurance premiums.

The healthcare cost in the United States has continued to grow over the years, and it is now one of the biggest challenges facing policymakers. Policymakers should focus on equalizing the distribution of healthcare costs to make healthcare affordable and accessible to all, thus reducing the overall cost of healthcare.

References

Azar, A. M., Mnuchin, S. T., & Acosta, A. (2018). Reforming America’s healthcare system through choice and competition. U.S. Department of Health and Human Services, U.S. Department of the Treasury, and the U.S. Department of Labor. Available online: https://www. hhs. Gov/sites/default/files/Reforming-Americas-Healthcare-System-Through-Choice-and-Competition. Pdf.

Birkland, T. A. (2015). An introduction to the policy process: Theories, concepts, and models of public policy making. Routledge.

Blank, R. H., Burau, V., & Kuhlmann, E. (2017). Comparative health policy. Bloomsbury Publishing.

Crowley, R., Daniel, H., Cooney, T. G., Engel, L. S., & Health and Public Policy Committee of the American College of Physicians*. (2020). Envisioning a better U.S. health care system for all: coverage and cost of care. Annals of Internal Medicine, 172(2_Supplement), S7-S32.

Dieleman, J. L., Squires, E., Bui, A. L., Campbell, M., Chapin, A., Hamid, H., … & Murray, C. J. (2017). Factors associated with increases in U.S. health care spending, 1996-2013. Jama, 318(17), 1668-1678.

Emanuel, E. J. (2018). The real cost of the U.S. health care system. Jama, 319(10), 983-985.

Gerston, L. N. (2014). Public policymaking: Process and principles. Routledge.

Hill, M., & Varone, F. (2021). The public policy process. Routledge.

Jacobs, L., & Skocpol, T. (2015). Health Care Reform and American Politics: What Everyone Needs to know. Oxford University Press.

Papanicolas, I., Woskie, L. R., & Jha, A. K. (2018). Health care spending in the United States and other high-income countries. Jama, 319(10), 1024-1039.

Sidney, M. S. (2017). Policy formulation: design and tools. In Handbook of public policy analysis (pp. 105–114). Routledge.