Introduction
Despite advances in medicine, the American healthcare system remains one of the country’s most significant problems. It is all the fault of the unaffordable prices that taxpayers and the state are forced to spend on medical services. Most medical institutions in the country are private and set their own tariffs. Thus, calling a regular ambulance can cost a patient several thousand dollars without insurance. Therefore, the current legislation is designed to change this situation by making medicine more accessible while maintaining its quality.
Legislation
Treatment in the country is financed mainly by private insurance, which citizens or their employers pay for. To obtain insurance, individuals need to have a stable and consistent income. However, not all employers are ready to offer their employees an insurance plan (Dusetzina & Huskamp, 2022). For small firms and startups, such costs are often unaffordable.
At the same time, the American healthcare system remains one of the most inefficient compared to other developed countries. The new American administration, headed by President Joe Biden, is proposing to the US Congress an increase in healthcare spending of almost 24% for fiscal year 2022 (Dusetzina & Huskamp, 2022). All this should contribute to allocating funds for the development of medicine and providing financial assistance to those in need of treatment. The healthcare reforms in the Inflation Reduction Act of 2022 are less drastic than those in the now-defunct Build Back Better Act (Dusetzina & Huskamp, 2022). However, they will still have a profound impact on millions of older adults’ access to medications and the cost of private health insurance for those with low and middle-class incomes.
Millions of households are struggling with inflation and healthcare costs, hoping for expanded health insurance subsidies. To address this crisis, the act makes essential changes to drug pricing (Dusetzina & Huskamp, 2022). However, these changes do not reduce prices for everyone or effectively address the soaring prices of some life-saving medications, such as insulin.
However, since the passage of the Affordable Care Act in 2010, it is the most significant healthcare reform in the US (Dusetzina & Huskamp, 2022). The act also extends federal subsidies that aid in affordable private health insurance for millions of Americans who buy it through a government-run marketplace. The Inflation Reduction Act ensures that the cost of health insurance for millions, many of whom earn earnings close to the poverty line, will remain virtually entirely covered by the federal government (Dusetzina & Huskamp, 2022). Therefore, I agree with the current legislation, but further steps to improve the situation should be taken actively and progressively.
Conclusion
The US government has taken a first step in fulfilling its commitments under international human rights law to control drug costs and ensure that everyone can access necessary medications at an affordable price through the Inflation Reduction Act. Therefore, it is worth noting that the government is aware of the current issue. The steps taken represent profound changes compared to previous attempts to significantly alter the healthcare system. However, the current legislation already reduces the pressure on the part of the population that needs medicines the most. That is why this is a crucial step that should have a positive impact on the entire US healthcare system.
Reference
Dusetzina, S. B., & Huskamp, H. A. (2022). Impending relief for medicare beneficiaries — The Inflation Reduction Act. New England Journal of Medicine, 387(16), 1437–1439.