Your assignment is to prepare and submit a paper on healthcare sector in u.s. Healthcare sector in U.S.At first the research objective has been clearly defined in the report after that, issues have be

Your assignment is to prepare and submit a paper on healthcare sector in u.s. Healthcare sector in U.S.

At first the research objective has been clearly defined in the report after that, issues have been highlighted in the report regarding the result of the spending cut by the government. Then the solutions to meet these challenges have also been discussed using different models. In the conclusion section of the report, the results are discussed in a summarized form. The thesis statement of the report is to assess the implications of reduction in U.S medical insurance reimbursement of 40%”.

RESEARCH OBJECTIVES: The objective of research study is to provide recommendations to the insurance company about how company can meet the challenges of spending cut by the U.S. government in the medical insurance sector by 40%. The main objective of the report is to provide the solutions through the financial, legal and alternative healthcare models.

ISSUES INVOLVED IN A POTENTIAL REDUCTION IN U.S. MEDICAL INSURANCE REIMBURSEMENT: It has been a trend in the U.S for a long time that the government increase its budget or spending on the healthcare sector with the passage of time. The government always has taken serious measures to protect the health of the people and has ensured that the government cares about the people and their health (Chua, 2006). The increasing rate of expenditure on the healthcare sector by the government has become the cause of stress for the government because it was consuming a large amount in the budget. By continuous increment in the percentage of this amount, government was cutting the expenditures of some different sectors to meet the demand of the healthcare sector. But now government has realized that the expenditures should be reduce from the healthcare sector and expand it to some other sectors to meet their demand. Regular reimbursement through government funding allowed the hospitals and other institution to expand its operations or encourages the growth in structure, capital and capacity. The reduction in the reimbursement will affect on many institutions, but the focus of the report is on the insurance sector. Government pays reimbursement to the insurance companies for a long time at some specific percentage for protecting the health of the people in the country (Bryant, 2012). The spending cuts in this sector will force many hospitals and physicians out of this market. This will create a serious problem of the shortage of the hospitals and physicians with in the country. The expansion plans of healthcare services will also affected badly. THE IMPACT OF REIMBURSEMENT CUTS BY THE GOVERNMENT ON THE INSURANCE COMPANIES Insurance companies are extremely highly affected by the spending cut program of the U.S government on the healthcare sector. Insurance companies are affected by many ways: 1- The reduction in funds of the insurance company: The reduction in the fund of the insurance company will have a greater impact on the performance of the company. Financial planning of the company will be paused if the sufficient funds would not be provided to the company. 2- Insurance services will be provided to the lesser people than before: Large number of people will be affected by the spending cuts program.