BUS FPX 4122 Assessment 2 Politics and Health Care Economics
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BUS FPX 4122 Assessment 2 Politics and Health Care Economics

BUS FPX 4122 Assessment 2 Politics and Health Care Economics


Capella university

BUS-FPX4122 Health Care Economics

Prof. Name


Politics and Health Care Economics

Influence and History of Healthcare Reform

Political healthcare reform in the United States (U.S.) has been a contentious issue for over two decades, primarily stemming from high healthcare costs and low reimbursement rates from insurance companies. Numerous reforms could enhance the U.S. healthcare system, drawing insights from countries like Canada, Germany, and the United Kingdom. This paper aims to review the current U.S. reforms, compare them with other healthcare systems, and propose effective strategies for meaningful reform in the U.S.

When examining healthcare reform in the U.S., it is crucial to address the initial reforms enacted in the early 1990s. These reforms aimed to repair and replace some aspects of the New Deal and reforms initiated after the Great Depression. The Clinton administration’s reform plan sought to transform the mixed public-private healthcare system, aiming for universal coverage with employer contributions towards insurance premiums. However, it faced challenges in implementation, reflecting the ongoing struggle between reform leaders and popular movements (Oberlander, 2007; Hoffman, 2003).

Analysis of Non-U.S. Healthcare Models

Before discussing the 2014 U.S. healthcare reform, it is insightful to examine another country’s healthcare system for comparison. Canada’s single-payer insurance system provides universal healthcare, with physicians dealing with a single insurance agency, akin to Medicare in the U.S. However, the Canadian system also presents limitations, such as strict government control over pricing and limited private alternatives, leading to rationing of medical services (Lehr, 2004).

Alternatively, Germany’s healthcare system offers a dual approach with private insurance organizations and government welfare-type insurance companies. This system emphasizes individual contributions and autonomy, with private insurance options available based on income thresholds. By fostering competition and providing access to private sector options, the German model ensures broader coverage and reduced wait times, potentially serving as a role model for effective healthcare reform (Germany HIS, 2016).

BUS FPX 4122 Assessment 2 Politics and Health Care Economics

Current Healthcare Reform

Following the passage of the Affordable Care Act (ACA) in 2014, the U.S. healthcare system transitioned into a threefold system comprising private insurance, government exchange plans, and government insurance programs like Medicare and Medicaid. While the ACA aimed to expand coverage and control costs, its impact remains under scrutiny. Analysts suggest that the law benefited the healthcare system by bringing in new customers, patients, and prescription users, but its long-term effects require further evaluation (ABELSON, 2014).

Compared to other countries’ healthcare models, the U.S. system provides more access to private insurance, fostering a diversified market. However, this approach intensifies competition among insurance organizations, potentially hindering universal coverage. In contrast, models like Germany’s blend private and public elements, ensuring broader access without solely relying on government funding (Chenier, 2002).


In conclusion, government-based insurance models pose challenges in terms of political unrest and financial burden. Systems like Germany’s, which incorporate private sector competition and individual contributions, offer promising alternatives for healthcare reform. While the U.S. continues to refine its healthcare system, lessons from both successes and failures of other countries can inform future reforms, ultimately striving for accessible and sustainable healthcare for all.


ABELSON, R. (2014, October 26). Is the Affordable Care Act Working? – The New York Times. Retrieved from http://www.nytimes.com/interactive/2014/10/27/us/is-the-affordable-care-act-working.html?_r=0#/

Chenier, N. M. (2002, December). Health policy in Canada (93-4E). Retrieved from http://publications.gc.ca/Collection-R/LoPBdP/CIR/934-e.htm

Germany HIS. (2016). Private Health Insurance in Germany – Germany Health Insurance System. Retrieved March 27, 2016, from http://www.germanyhis.com/private-health-insurance-germany/

Hoffman, B. (2003). Health Care Reform and Social Movements in the United States. Am J Public Health, 93(1), 75-85. doi:10.2105/ajph.93.1.75

Lehr, J. (2004, June 1). Canadian Health Care Is No Model for U.S. | Heartlander Magazine. Retrieved from http://news.heartland.org/newspaper-article/2004/06/01/canadian-health-care-no-model-us

Oberlander, PH. D., J. (2007, October 25). Learning from Failure in Health Care Reform — NEJM. Retrieved from http://www.nejm.org/doi/full/10.1056/NEJMp078201

BUS FPX 4122 Assessment 2 Politics and Health Care Economics

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