Health Care Industry Analysis

It should protect people from health-related problems like accidents, chronic diseases, and medical emergency but this is not the case. Some of the companies involved in providing health insurance offer many choices but it is usually complicated to select a given plan. In this regard, you have to go through a group of deductibles, premiums, coinsurance, and copayment. The reason why these companies charge copays, deductibles, and coinsurance is to ensure that people do not go to the hospital whenever people sneeze. This is due to the fact that if the insurance companies were to provide 100 percent free health care these companies would incur a lot of costs. This is not the case with the some of the companies offering health insurance because many people cannot afford to get health insurance from these companies.

The health insurance companies are very powerful when it comes to the provision of healthcare to the people. For example, Hillary care failed to work because it received great opposition from the health insurance companies. The health insurance together with medical profession worked in conjunction in order to defeat it. In addition, when you look at Obamacare you find that it was initially intended to provide universal care but it ended up being controlled by the health insurance. Some of the private companies are now feeling the impact of health insurance companies. These companies have now come up with a plan of providing health care to their employees in absence of health insurance companies. For example, Berkshire Hathaway ,Amazon as well JP Morgan are now partnering to form an their own independent healthcare organization.

According to these companies, this is the start of a new era because the current healthcare industry is inefficient, costly and complicated. This plan result in disruption of the current healthcare system. In addition, through the adoption of the new technology, this initiative will make use of the wearable technology which in one way or the other will improve the patient-doctor experience (Wingfield et al 33-40). The arrangement put in place by these private companies has various advantages to the employees and the middle class people. One of the advantages is that it will drive various reforms in the health sector. For example, the healthcare insurance industry will now start making their services cheaper because they will start facing stiff competition from these companies.

This will also make the government to come in and start negotiating for cheap healthcare. Lastly, the level of poverty will be reduced because people will not be now spending a lot of money in medical bills because now they have access to cheap healthcare. This initiative has the advantage of increasing compensation on the part of the employees because the money which could have been used in paying the ever expensive healthcare expenses can now be used in compensating the employees. If the employees are assured of compensation it means that they will work extra hard to achieve the companies' objectives (Mandl et al 1905). The new system which have been adopted by these big private companies has various disadvantages. One of the disadvantages is that this system can fail in future because these companies do not have the much needed experience when comes to provision of healthcare.

For example, each company has different level of wages and it will be very difficult standardize the healthcare because each company is different. Another disadvantage of this plan is that it will be difficult to adapt to the new changes experienced by the healthcare sector. For example, although these companies have a lot of money they are not willing to employ specialists as well as finance health research. For example, new diseases are occurring and it is the responsibility of the healthcare sector to do research in order to come up with the right medication. This will not possible because these companies are not ready to invest in research because they do not want to incur a lot costs. In addition, it will be very difficult for this plan to work because many people still trust the healthcare insurance because it provides quality services and products compared to this program which lacks the much-needed expertise.