Introduction
My team members and I have been asked to consider the cost containment notion in regards to financing healthcare. After our research we were able to explain how three different groups have addressed cost control issues. The groups we researched were 1) The United States Government, 2) The Commercial Insurance Industry and 3) Healthcare Providers. After reviewing our research we were able to collaborate and explain what we believe will be the long-term impact of these cost-control efforts. A conclusion follows this explanation with our own thoughts and views.
Cost Containment
1) The United States Government:
One major concern for the retirees and employees who receive healthcare benefits through state and local governments is the increase in inflation. The challenge that the government faces, due to this inflation, is maintaining these benefits. It is essential for these people to be able to have more flexibility and the tools in order to save for retirement or to pay for healthcare cost. One of the most critical components of long-term planning and budgeting is cost containment which helps in maintaining the levels of the governments provisions (Government Finance Officers Association, 2004).
The government and information technology has proposed subsidies to aid in the efficiency of the healthcare system through support for developing and installing information technology which in turn helps improve coordination of patient care. The major concern with this is that there is an uncertainty of whether cost reduction can be achieved. According to The New England Journal of Medicine (2007), "Greater adherence to the practice ...