The rising costs and shrinking reimbursements from insurance programs like Medicare and Medicaid are contributing to the downscale. The rising number of people lacking health insurance not only affects the uninsured and their families but the impact is felt on the nation's economy and the healthcare system. Furthermore, the large number of uninsured patients often overwhelms hospital emergency room as well as other health facilities.
The increase of the number of uninsured, has many health officials" concerned. There are several possible reasons for the cause in the rising number of the uninsured. The most common reason for why individuals do not buy coverage or why employers do not offer coverage is due to the continuing rise of health care costs. The rising health care costs are a problem for employers, particularly for small employers with fewer than 50 workers. Many uninsured people conclude there is no reason to buy health insurance. If they get sick, they find ways of becoming insured through an employer's plan. Even if they cannot get insurance, they still get medical care paid for by out taxes. Another prominent reason is due to the poor economy, which has led to an increase in the number people who have lost their jobs and thus, their source of coverage is discontinued.
Most importantly, if solutions are not accessed, the healthcare system in California will continue to decline. Some major problems that California will face are the increase in the number of hospital closures due to the high costs of health care. This will also contribute the increase of the "perfect storm" in local emergency medical systems. Thus, the flooding of hospital emergency rooms will place the burden on private hospitals. Most importantly, this will also increase the rate of illness and mortality, while decreasing the rate of disease prevention and control.
The State has designed its Medi-Cal program to cover large numbers of people and many services.