Good Example Of Modern Health Insurance Model Essay

Hilton-Burton Act

Hilton-Burton Act, popularly known as Hospital Survey and Construction Act was a federal law passed in the United States in 1973 with the objective of providing loan and grants to the hospital in order to assist their modernization. In return, hospitals were supposed to provide either subsidized or cost-free services to all the people living in their area. The hospital selected for funding under the act were also required to provide emergency services, maintain unbiased patient admission policy and participate in Medicare programs. Although the program stopped providing funds in 1997, but still around 200 hospitals in the United States to provide free or reduced-cost services to patients living at poverty line.

HMO Act, 1973

HMO Act, 1973 was a landmark act passed in United States as it cemented the presence of Health Maintenance Organization in the health system of the nation. Prior to the approval of the act, HMO’s were facing many restrictions under the state laws. However, the act not only removed all such restrictions, but also provided grants to expand the presence of HMO in the United States. Important to note, HMO’s are the organization that provides health coverage with providers under the contract which eventually assist in offering low premium coverage to the members.

Socialized Medicine v/s Universal Healthcare Insurance

There is a drastic difference between these two health insurance models. As for socialized medicine model, only the government is the single obligated payer where the member covered gets the insurance benefit. In other words, government will pay for our doctors and other providers while we will be getting the benefit.
On the other hand, Universal Healthcare, only the government is not obligated to pay for our insurance payments, in fact, both the private and public or only private individual will be obligated to pay for their insurance premiums.

Group Insurance v/s Individual Insurance

Group insurance are provided to a group of employees by his employer, while an individual insurance is purchased by a single individual. In general, individual insurance is relatively expensive than group insurance.

References

Health Maintenance Organization - HMO. (2015, April 23). Retrieved from Investopedia: http://www.investopedia.com/terms/h/hmo.asp
Obringer, L. A. (2015, April 23). Understanding Health Insurance. Retrieved from http://health.howstuffworks.com/health-insurance/health-insurance2.htm
Torrey, T. (2015, April 23). Is Universal Healthcare the Same as Socialized Medicine? Retrieved from http://patients.about.com/b/2008/10/17/is-universal-healthcare-the-same-as-socialized-medicine.htm
What Is the Hill-Burton Act? (2015, April 23). Retrieved from http://www.medicarenewsgroup.com/news/medicare-faqs/individual-faq?faqId=bbd8acd6-7402-4c3d-acbf-c79e7d289ec9