In common parlance, insurance is thought of as a way to “insure” oneself against the possibility of financial loss. However, insurance also allows for the transfer of assets between times of high and low liquidity. We assess the possibility of this transfer from health insurance by studying the distribution of Social Security checks among Medicare recipients. It has been found that the number of prescriptions filled by people who get Social Security payments with a small co-payment increase by 6-12% when such benefits are paid out. This trend is not seen among those who do not have to make a co-payment. Based on these results, it is clear that those with better access to healthcare insurance can receive medical attention when needed rather than waiting until they have the funds to do so (Gross et al., 2022).
According to (Tsai, 2018), any study examining the impact of Social Security benefits on healthcare costs has the inherent bias of missing factors. Retirement health care costs and lifetime earnings, which are used to determine Social Security benefits, may be related. Those who take care of themselves have better financial outcomes and incur fewer medical costs throughout their lifespan. If individual health is considered when estimating the impact of Social Security benefits on medical care expenses, the estimates will be relatively high. According to National Health Expenditure data, the average cost of health care for those aged 65 and over in 2010 was $14,797, which is 5.6 times more than the average cost for children ($2,650) and 3.3 times more than the average cost for adults of working age ($4,511).
Additionally, for many seniors, Social Security is their sole reliable source of income. 35% and 64% of elderly Social Security users (those 65 and over) got at least half of their income from Social Security. Therefore, changes to Social Security benefits would undoubtedly impact how the elderly pay for medical care.
One of the ethical challenges affecting social security checks is access to care. For example, people with disabilities find it hard to access care since the expenses are too high. People with disabilities often need supplementary medical care on top of the regular kind since they need special aids and equipment for their disabilities and regular health care. However, many cannot receive treatment due to linguistic, cultural, economic, and psychological limitations. The high cost of health care is a major barrier to receiving necessary care. Because they use more healthcare services and are more likely to be poor, people with disabilities face higher healthcare costs but fewer resources. Medical costs fluctuate based on several factors, including the kind and degree of the disability, when it first manifested, and whether or not other conditions were present. Due to insufficient financial stability, they may be refused access to universal health coverage (UHC).
In healthcare, some leadership strategies that can be employed in solving some of the problems and challenges encountered are collaborative leadership and continuous improvement management strategies. The collaborative is such a kind of leadership that can be employed in solving matters concerning access to healthcare; one of the biggest challenges is medical expenses. A collaborative leadership strategy can plan on how to expand insurance to cover healthcare costs since, in 2020, the National Center for Health Statistics projected that 31,6 million individuals of all ages were uninsured. These individuals, including the 3.7 million uninsured children in the United States, are typically employed or dependents of employed adults. This ascending pattern arises for a variety of reasons. The rising insurance cost has rendered it unaffordable for many companies to offer this benefit to their employees. People who purchase insurance on the open market frequently face excessive costs and inadequate coverage. Some individuals cannot afford to pay that amount of money at this time. Collaborative leadership can also plan on extending telehealth services and investing in mobile clinics.
Continual improvement is working over the long haul to make slight, incremental adjustments to processes to boost efficiency and quality. The management philosophy of “lean” reflects this idea. Since Lean is most effective when used to modify groups of processes rather than making discrete, minor changes to one function, it has been widely implemented in large contexts like hospitals. Lean has been utilized to better operational operations and clinical treatment, from the standardization of surgical tools to improving insurance claims processing and patient safety measures. Lean has also been used in healthcare delivery to eliminate wasteful procedures, including waiting times, improving healthcare access. Corporate social responsibilities are also helpful in solving the issue of healthcare access.
To ensure that my strategies comply with the external regulations, first, I will set and determine the goals of the strategy I apply. Second, to ensure that there is no Collison with the external regulations, I would draft policies and procedures that the organization will follow. Lastly, I would ensure that I build an effective training program for the health care providers. It would help if you had a compliance plan with precise guidelines and regulations, a designated compliance person, training, and audits to carry out your compliance responsibilities in the healthcare industry. Your business can prevent penalties and legal action by aggressively establishing compliance processes to ensure that laws are not broken and that breaches are immediately notified. There should be ongoing procedures in place to guarantee compliance. Many companies have started using software to manage their compliance requirements efficiently and consistently throughout time (Scheibel, 2022).
In conclusion, as part of the standard procedure for calculating Social Security benefits, “monthly average indexed earnings” are used. Wages during 35 years, as indicated by this mean, have been adjusted for inflation. Primary insurance premiums are computed using this mean and a specific formula (PIA). The amount of a recipient’s benefit is established using the PIA. Access to comprehensive, high-quality healthcare services is essential to promote and maintain health, control disease, prevent unnecessary disability and premature death, and achieve health equity for all Americans.
References
Gross, T., Layton, T. J., & Prinz, D. (2022). The Liquidity Sensitivity of Healthcare Consumption: Evidence from Social Security Payments. American Economic Review: Insights, 4(2), 175–190. https://doi.org/10.1257/aeri.20200830
Scheibel, C. J. (2022, January 19). 6 Effective Compliance Strategies for 2022 | Vigilant. Vigilant LLC. https://vigilantllc.com/6-effective-compliance-strategies-for-2022-vigilant-insights/
Tsai, Y. (2018). Social Security Income and Health Care Spending: Evidence from the Social Security Notch. The Scandinavian Journal of Economics, 120(2), 440–464. https://doi.org/10.1111/sjoe.12218
USC EMHA. (2022, August 10). How to Improve Access to Health Care: Issues & Solutions | USC EMHA. USC EMHA Online. https://healthadministrationdegree.usc.edu/blog/how-to-improve-access-to-health-care/
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