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World Health Day is celebrated on April 7th every year to raise awareness about global health issues and challenges. This day reminds us to take some action to improve the health and overall well-being of people.
Each year, the WHO selects a theme for World Health Day that is meant to draw attention to an important health issue or a cause. The theme for World Health Day 2023 is Health For All.
In this article we will talk about how administration costs and FWA in US Healthcare is affecting the overall quality of health. We will also highlight how “health for all” can be achieved by plugging in the leakages, and containing administrative costs.
The US healthcare system is one of the most advanced and complex healthcare systems in the world. It comprises a mix of private and public healthcare providers, health insurance plans, and government-funded programs. The healthcare system is primarily funded through private health insurance plans, with approximately 67% of Americans receiving health insurance through their employers. The rest of the population are covered through government-funded programs such as Medicaid and Medicare or are uninsured.
Approximately 27 million Americans remain uninsured. This has resulted in a lack of access to healthcare for many individuals and families.
A report published by the JAMA found that nearly $1 trillion of annual spending is wasted.
High administrative costs can divert resources away from care given, resulting in higher healthcare costs, as well as reduced quality of care and client satisfaction. With the burdensome responsibilities of administrative tasks, payers may have less time to focus on important needs. But when this problem is addressed, they have an opportunity to work more efficiently on the important issues.
Every American should have access to affordable health care.
To combat FWA, various laws and regulations have been put in place, such as the False Claims Act, which allows the government to pursue legal action against individuals or organizations that submit false claims for payment. Additionally, payers are required to establish compliance programs and regularly conduct audits, use platforms that helps in preventing and adapting to the ever-evolving claims & payment inaccuracies.
FWA encompasses various unethical practices that can harm individuals or organizations and undermine their integrity and reputation.
Medicare and Medicaid are particularly vulnerable to FWA. The Government Accountability Office (GAO) reported an estimated $247 billion in payment errors for FY 2022. These errors include overpayments or payments that should not have been made.
Ultimately, increased administrative costs and FWA can also lead to higher healthcare costs for citizens, making it harder for them to access the care they need. This can be particularly problematic for people with low income or chronic health conditions.
If one trillion dollars are being wasted due to FWA, then it implies that there is some issue with how the processes are being managed or distributed. By working together, we can create a more efficient, effective, and trustworthy healthcare system for all Americans.
On this World Health Day, let's take the time to counter the challenges of US healthcare, be responsible and work together to build a healthier, more equitable future for all by achieving ‘Health for All’.
