Funding Healthcare System, Sharing Risk and Portfolio Theory Thesis

Funding Health get by System, Sharing Risk and Portfolio Theory - Thesis practice session10). These processes are vital for the policy makers as tumefy as planners who oft face challenges in intention wellness sustentation bread and butter systems towards meeting the specific social, stintings, and political objectives. Many countries are ever down the stairs constant pressure in issues related to social policies since they often experience increased expenditure and uncommon resources. Nonetheless, the policy makers must analyze the following three options increasing health awe support and containing be or both. The heath palm mount and expenditure crisis have introduced radical changes in the organizational and funding mechanisms within the health care sectors (Grossman, 2011 pg. 12). Since the 1970s, the cost containment is the principal driving factor in the discussion of the health care policies especially in the industrialized nations. Despite the underlying challen ges in funding health care systems, an articulated and a well balance budget will provide sufficient revenue towards managing health care systems. Notably, nations have restrained themselves from bulk revenue borrowing otherwise, economies have shift to sound economic policies with focus on revenue policies. Can these changes produce sufficient and sustainable health care funding systems? Literature Review Government or associated organizations often pay the bulk of the funding of the health care services. The major part of these funds is generated from the tax put oned from the citizens of such nations. For instance, in the United Kingdom has a single payer system that governs its healthcare systems (Grossman, 2011 pg. 72). The UK taxation and health care funding system build funds passly from the government to the health care systems. In other nations like Germany and France, the government collect tax from the citizens and only fund part of the health care systems towards payi ng individuals and employees among other involved costs. In other nations such as America, a certain portion of the health care system is often market based. In the market based funding systems, the health care systems are paid for by the private entities including employers and individuals. Moreover, the market-based systems require governments to provide health care to the vulnerable persons (Elton and Gruber, 1999). For example, in the United States, it is the responsibility of the federal government to fund health care systems towards supporting the disable and the elderly through its federal support Medicaid program. On the other hand, the federal and state supported Medicaid program aims at covering the health care services for the low-income earners. These two different health care funding approaches have their different distinct pertinence within the health care sector. Individuals and private organizations generally deliver the market-based systems. Moreover, a part of the systems is usually subjected to a certain level of competition. Market base funding systems is often open to many suppliers, providers, and payers as well as persons with insurance that aims at serving their specific medical needs (Glied and Smith, 2011). In such funding mechanisms, doctors may be given a benefit of practice as a guideline that direct them of when and what different treatment to be applied however, they are ever free in making care decisions depending on