preview

History of American Medicine Essay

Decent Essays

History of American Medicine Final Paper
PART I(a) With the creation of Medicare in 1966 in order to expand access for the elderly to the American healthcare system, the ways in which medicine and its corresponding industries were conducted were irrevocably changed. Prior to its inception, only 65% of people over 65 actually had proper health insurance, as the elderly paid three times as much for healthcare as young people (Stevens, 1998). The private medical sector had much more control over who they would treat, how much they would charge, and more; the passing of Medicare freed up the elderly to have reasonable access to healthcare as a consequence of a lifetime of paying into the system. The way Medicare was originally organized, …show more content…

With Medicare, however, more people qualified for insurance, making them more willing to go in for preventative care (and thus preventing the need for expensive procedures later by detecting and solving problems early). Furthermore, the presence of Medicare made recipients of Medicare 100% able to pay for their healthcare, since their coverage was provided by the federal government; this avoided problematic avoidances in payment, thus lowering the risk pool and keeping costs down. Physicians are also allowed to collect their fees right from carriers, limiting patient liability, though it is much more profitable and advantageous to them for patients to pay their physicians directly and simply get a refund from Medicare later. Medicare’s eventual organization, however, soon allowed for third parties to enter the health care market, and ensure that corporations had a larger stake in the health care system. Because of the federal government’s relative inexperience, people and medical practices would simply choose to use private fiscal agents such as the Blue Cross Association to ensure they had experienced figures. Because of this demand, legislation was changed to accommodate the Blue Cross into the overall federal infrastructure of Medicare. The entrance of third parties into the health care system, including voluntary health insurance organizations, helped to make Medicare seem less scary or rigid

Get Access