Explain why the lack of universal health care coverage can raise health care costs.
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Ok thank you This is what I had wrote:
Healthcare, as it exists today, is an ever escalating, competitive process whereby providers and institutions thrive financially. If universal health care coverage were made available to all people, the competition among the providers and institutions would not exist. All parties would have access to care, and standardization of rates would be employed and regulated. In so doing, access would be universal to any person, regardless of ability to pay. In environments where universal access is not available, the private sector is able to flourish, and competition remains a driving force. In a universal access environment, the private sector becomes a dinosaur, as competitive rate providers can no longer compete with free services. In a traditional environment, without universal care, the specialties with limited access can continuously raise rates, and the wait to receive the service is long, but costly. In the Universal access model, there in affect is NO competition, the cost is nil, but the wait for services is outstanding and uncontrollable. Removing competition from the mix, a universal health care system thereby contains and levels the cost of health care, even in the private sector.
The lack of universal health care coverage can raise health care costs due to several reasons. Let's break it down and understand the key factors involved.
1. Limited preventative care: Without universal health care, many individuals may not have access to affordable or regular preventative care services such as vaccinations, screenings, and check-ups. When people do not receive timely preventive care, their conditions may worsen, leading to more severe health issues and expensive treatments down the line. By lacking early intervention, the healthcare system ends up dealing with costlier medical emergencies and chronic diseases that could have been prevented.
2. Higher rates of emergency care: In the absence of comprehensive health coverage, individuals who cannot afford regular doctor visits may delay seeking medical help until their condition becomes severe. Consequently, they often end up resorting to emergency rooms for treatment, which are significantly more expensive than a routine visit to a primary care physician. Emergency care costs include additional overhead expenses and often require specialized treatments, resulting in a substantial burden on the healthcare system.
3. Increased burden on public health program and assistance: When a significant portion of the population lacks health insurance, the burden on public health programs and assistance increases. In countries with universal healthcare, the costs are distributed among the entire population through taxes or other mechanisms. However, without such coverage, uninsured individuals often rely on government-funded programs like Medicaid or public hospitals, which can strain the existing healthcare infrastructure. This increased demand for limited resources can drive up costs.
4. Cost shifting to insured individuals: In systems without universal coverage, healthcare providers and hospitals may need to absorb unreimbursed costs for treating uninsured patients. To compensate for these losses, healthcare facilities might increase the prices for services, tests, and prescription medications for insured individuals. This cost shifting can indirectly impact everyone with health insurance, leading to higher premiums, deductibles, and overall healthcare costs for the insured population.
5. Reduced bargaining power of individuals: Without a centralized system, individuals might lack the collective bargaining power to negotiate lower prices with healthcare providers, pharmaceutical companies, and insurers. In countries with universal health care, the government often negotiates prices on behalf of the entire population, ensuring more affordable healthcare services and medications. However, in the absence of universal coverage, individuals may find it challenging to negotiate favorable rates, resulting in higher costs for medical treatments and prescription drugs.
In summary, the lack of universal health care coverage can lead to higher health care costs due to limited preventive care, increased dependence on emergency services, burden on public health programs, cost shifting to insured individuals, and reduced bargaining power for individuals.