Sunday, October 2, 2011

The Money Flow From Households to Health Care Providers


The flow of money through health care in the United States is complicated, with many detours on the way from households, which ultimately pay for all of the nation’s health care, to providers. It is a fact that government insurance programs have played an increasing role in the overall health care money flow. The complex pathways in the chart showing the flow of funds would be reduced to a single path of private households paying taxes to the federal government which then pays the providers of health care. This simple path greatly reduces the costs and complexity of moving these funds, especially when compared to the flow through private insurers

1 comment:

  1. I agree that streamlining the system would almost certainly save the consumer money. But I'm not sure that moving to the federal government providing health care would be the most economically efficient option. Rather than radically changing the system, the government could focus on reforming Medicare and Medicaid by, for example, forcing Medicare to be more conscious of the prices they are paying for health care. Changes like these would be less radical, but also quite effective in saving money.

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