Effects of Internet Online Booking in Travel Agencies

Effects of Internet Online Booking in Travel Agencies Can High Street Travel Agencies Survive  With Online Travel Agencies? Contents (Jump to) Chapter 2 Literature Review Chapter 3 – Methodology Chapter 4 Findings and Analysis 4.1 UK Travel Industry, Current Analysis 4.2 Composition of Travel The travel industry represents the classic example of firms operating as agents between the seller and buyers as represented by the multitude of offers that are present in the industry. The foundation for this process was established in the pre-computer era that utilized direct reservation systems. This mode inculcated the industry and became the accepted operational norm as airlines had an exterior sales force as represented by these independent operations, and customers had a means to wade through the difficult maze of airline flight possibilities. The advent of the internet brought a new variable into the scenario whereby it provided consumers with a choice as a result of the capabilities of this medium to collect and display flight availability, schedules and pricing through search engine compiling. Transaction costs were lowered as a result of economies of scale and 24 hour availability, with the heart of the process fueled by utilizing consumers to conduct the work in finding b argains. This examination will seek to equate whether the traditional travel agencies known as High Street, representing brick and mortar operations in the industry parlance, can survive the onslaught to their business as represented by online travel agencies. The travel industry represents a phenomenon that we are all familiar with in terms of verbiage, however, the definitive meanings as represented by specific words may not be as clear as one would think. In order to provide the necessary verbal underpinnings for this analysis of ‘if High Street Travel Agencies can survive with online Travel Agencies’, a definition of terms seems in order. Travel represents a word that emanates from ‘travailen’ in Middle English, which means to toil, and has its roots in the French word ‘travailler (Wikipedia, 2007). It, travel, is defined as (American Heritage Dictionary, 2007) 1. being transported â€Å"†¦ from one place to another †¦Ã¢â‚¬  as represented by either a trip or journey, and, 2. the process and or time entailed in moving a person from a particular location to another. Travel can be further explained as tourism, which is the visiting of family and or friends, the process of commuting as represent ed by traveling to either work or other functions, the act of migration in moving one’s local or as a constant series of moves as illustrated by nomadic peoples, and as pilgrimages for religious reasons (Wikipedia, 2007). In the context of this examination, travel shall be defined by the transport of individuals for pleasure, tourism, business and personal reasons. A travel agency â€Å"†¦offers its services in the capacity of an agent †¦Ã¢â‚¬  and provides â€Å"†¦ travel and tourism related services to the public †¦Ã¢â‚¬  as achieved through the agency’s arrangements and agreements with â€Å"†¦ airlines, cruise lines, hotels and other suppliers of travel related services† (Department of the Treasury, 2002). Travel agencies â€Å"†¦ may contract directly †¦Ã¢â‚¬  with the aforementioned companies or through what is termed a â€Å"†¦ coordinating body such as the Airlines Reporting Corporation †¦Ã¢â‚¬  as well as other such agencies or bodies (Department of the Treasury, 2002). In addition to the aforementioned services, travel agencies may offer varied financial related services such as traveler’s checks and trip insurance. An important segment of the travel industry is represented by tourism, which Hermann Von Schullard, Austrian economist, stated is the â€Å" †¦ sum total of operators †¦ which directly relate to the entry †¦ stay and movement of foreigners †¦Ã¢â‚¬  (MedLibrary.org, 2007). The introduction of internet based online travel information, booking and ticketing systems introduced a new variable into the market which allows consumers to research ticket prices, schedules and related aspects at discounted prices as a result of the lower commissioning fees online services charge airlines for acting in their capacity as middlemen. This phenomenon caught on with the public and market share increasingly shifted in favor of online travel services as lower prices, instant access and no frill airlines captured their imagination. High Street travel agencies are thus caught in a battle for survival as a result, however there are market variables that indicate the penetration rates of online travel agencies has been slowing, but massive damage has already been done. If High Street travel agencies are to survive, they will have to capitalize upon inherent facets of customer attitudes and preferences as well as what their service type offers that can not be duplicated by c omputerized access that does not offer human problem solving skills for complex travel related problems that exist in varied circumstances. Chapter 2 Literature Review The rapid pace of changes and developments in the travel industry as a result of travel packages, consumer attitudes, economic variables, utilization histories with varied forms of booking methodologies and related aspects rendered the examination of the subject matter as contemporary. The research methodology deemed best suited to this study was ‘descriptive’ in that it is based upon the use of data, information, facts and associated resources to reveal the way things are. To this end, this examination relied heavily on Internet sources to provide the aforementioned. The definitions utilized herein to provide a basis for understanding of travel agencies as represented by the statement provided by United States Department of the Treasury was used as it represented a definition honed from a governmental classification of an industry sector which represented the culmination of intensive study to arrive at its meaning in a universal sense that is applicable. This same approach was utilized to conduct data and survey research which entailed the collection of information from the Tourism Society of England, the International Air Transport Association, ITB Berlin and IPK International, Internet World Stats and other sources. In conducting the research on the question as to whether High Street travel agencies can survive with online travel agencies, the first aspect that was noted is that the various travel and tourism books offered information on each sector from a dated perspective that did not take into account new developments, many of which appeared in 2005 through 2006 as new travel packages and the a new travel sector, cruises, emerged as an industry force. The preceding contention is supported by the data uncovered by surveys conducted by Travel Weekly in the United Kingdom that asked respondents in the travel agency sector direct questions regarding their impression and view of their industry. Such a source represents more viable research that was conducted during 2006, offers a more comprehensive base of industry information on how things actually are as it asked the experts in the field of study, travel agents themselves. Their responses on what they viewed as the emerging segment of most importance, cruises, which also represents their most viable revenue stream is data which was not found in the numerous research studies conducted by the World Trade Organization, PricewaterHouseCoopers, Accenture and World Stats. These sources were extremely valuable in providing supporting data on trends, patterns and other facets of the travel and tourism sector, however, information from industry insiders in the High Street sector represented t he foundation for the question being examined. ITB Berlin and IPK International offered invaluable information concerning the breakdown of consumer utilization of travel agency sectors, as did PriceWaterHouseCoopers and Internet World Stats. Accenture’s research gave depth to the previous information as it provided data on how and what consumers do in the process of seeking travel services. Michael Porter’s Five Forces Model provided the means to correlate all of the indicated data and survey information into a concise summary of High Street and online travel agency competitive points to hone in on the variables and factors that the prior sources offered. Chapter 3 Methodology In examining the context of whether High Street travel agencies can survive with online travel agencies it was determined that the research would have to delve into the nuances of the travel and tourism sector to determine the following: Components of the industry from an historical perspective Key aspects of varied consumer attitudes, preferences, trends and views Travel industry product components, trends, developments and projections Trend of High Street and online travel agency market share progressions Relationships and importance of differing travel segment components in both sectors in relationship to their inherent strengths and weaknesses as applied against each service model Variables and factors at work, along with developing trends that might have a bearing on the examination To accomplish the foregoing the methodology selected entailed the utilization of secondary research of a limited historical nature to provide background information to understand the context of the industry sectors and their changing relationships. The preceding was accomplished through the use of books and journals along with statistical information. Since changes in any industry occur quickly the reliance upon books and journals for contemporary developments was deemed as inappropriate and inconclusive. Therefore, to determine the present status of both sectors, the research and operative methodology centered upon the analysis of data as well as trends and inherent characteristics. To accomplish the preceding quantitative research was determined as the methodology as it â€Å"†¦ generates new information about the world †¦Ã¢â‚¬  by virtue of (University of North Carolina, 2007): Objectivity, whereby the potential for bias that could potentially affect and or influence the outcome is kept to a minimum through the collection of varying points of view from a number of differing sources. Rigorous, in that the researcch process utilizes data to uncover obvious as well as obsure information, with attention to accuracy and detail as underlying precepts. Systematic, in that the conduct of research seeks coherent data and information in order to equate the true undercurrents of what is the case as opposed to what appears to be the case in the study and analysis. The subject under examination represents a puzzle that is ruled by the governing question (International Research Network, 2007). The preceding helped to determine the reseach process, the identification of the sources of data as well as information, and the methodologies to be utilized. Kravitz (2006) states that there are differing types of research which can be used in a study. The one selected for this examination included descriptive along with quantitative as it entails the collection of information and trends through the review of data, surveys and examination of varied sources. Kravitz (2006) indicates that this research type is best at describing the way things are, and that the review of prior research aids in the process, along with contempory information. Chapter 4 Findings and Analysis 4.1 UK Travel Industry, Current Analysis As of 2002 there were 3,181 travel agencies in the United Kingdom, representing a growth rate of minus 17.2% that generated $11, 659 billion in sales (International Air Transport Association, 2002). Globally, the travel industry generates in excess of one trillion USD annually and is the largest industrial sector (Vogel, 2006, pp. 50-59). The Tourism Society of England indicates that domestically this segment of the industry generates 75 billion pounds in a highly fragmented industry (Tourism Society, 2007). In polls conducted by Travel Weekly, the British based industry travel magazine, travel agents were asked their views on a number of areas (Travel Weekly, 2007). 47% indicated that cruises would represent the biggest growth area in travel in 2007, followed by long haul trips at 32%, and domestic breaks at 21% (Travel Weekly, 2007). The implications of the preceding seemingly bode well for travel agencies in that these types of trips consumers seek the aid of professionals to aid them with arrangements, features, pricing and the varied packages that are available, which can be quite extensive. Travel agents indicated that they were worried, however regarding the state of the travel industry entering 2007, registering 61%, with 26% indicating confidence and 13% checking indifference as their response (Travel Weekly, 2007). Travel agent responses provide a valuable insight as to how they feel concerning various aspects and as the most up to date informational source such is being utiliz ed to provide a gauge on the prospects of High Street travel agencies and their battle for market share with online travel agencies. A significant response to the polls in this regard can be found in what travel agents thought about the price wars lowering High Street fares. 36% indicated that they believed that such would end up in lower prices, while 42% replied no, with 21% indicating probably (Travel Weekly, 2007). With respect to the dollar to pound exchange rate that has increased in favor of the pound, travel agents indicated that they felt Christmas shoppers would benefit the most, 51%, followed by New York City retailers at 23%, High Street travel agencies, 15%, and online retailers and airlines at 11% (Travel Weekly, 2007). The preceding represents an indication of travel agent’s attitudes toward High Street travel agencies that mirrors their responses concerning their battle for market share. This view was also confirmed by travel agent responses to if there is any future for independent High Street travel agents. 54% stated that they felt there would always be room for independent agents, with 27% indicating the affirmative but as part of a larger buying group, and 19% stating that they would not be able to compete against the larger companies (Travel Weekly, 2007). When asked about the importance of cruises to their industry, travel agents responded in the following fashion. 53% indicated that this area is growing in importance, with 21% stating that it represents the one area that they make money (Travel Weekly, 2007). 17% indicated that this segment is too complex and that they do not sell cruise packages, and 9% stated that cruise business is vital to their business only if they sell these via self packaging (Travel Weekly, 2007). Given that 47% indicated that the cruise business will enjoy the largest segment of growth in the industry in 2007, that seemingly indicates that High Street travel agencies are factoring in this segment as an important revenue stream. The utilization of the Internet as a booking method has seen high growth in Europe, mostly in flights as well as accommodations (ITB Berlin and IPK International, 2006, p. 13). The foregoing represents an approximated one/third of all outbound trips and also entails online booking for some segments of an individual’s trip as represented by hotel and vehicle reservations (ITB Berlin and IPK International, 2006, p. 13). ITB Berlin and IPK International (2006, p. 13) reports that the utilization of the internet is primarily the mode used for airline ticket purchases, with accommodations second, however, vehicle reservations leads both categories as a percentage of sales of the total. Table 1- Travel Bookings in Europe, January Through August 2006 (as a percentage of pre-bookings in total travel) (ITB Berlin and IPK International, 2006, p. 13) Total Internet Accommodations 78% 37% Flight 63% 38% Travel insurance 23% 6% Bus/coach 15% 2% Rental car 15% 10% Ferry 9% 7% Train 7% 4% Others 5% 3% Interestingly, travel agents utilize the internet as a source of information and the use of tour operators in placing their rates and packages online represents a key reason for the preceding (ITB Berlin and IPK International, 2006, p. 13). Consumers utilize the Internet for a large percentage of their travel arrangements, especially in the area of airline, accommodation and auto rental, as shown by the following: Table 2 – Information Sources Used by European Outbound Travelers, January through August 2006 (ITB Berlin and IPK International, 2006, p. 14) Source % share Internet 45 Travel agency 20 Friends/relatives 17 Travel guide 8 Travel brochure 7 Newspaper 3 Tourist office 2 TV 2 Others 5 The preceding seemingly indicates that incursions by Internet based booking in the cruise travel segment is going to remain low as a result of the complexities encountered in making selections and wading through the complex data and choices. As the main revenue source and growth area for High Street travel agencies, consolidation of the services offered in this area represents a strong foundation to be built upon. The consumer climate in the United Kingdom exceeds the confidence of travel agencies with respect to their outlooks. Travel Weekly’s (2007) poll in this segment indicated that 26% of them were confident, while ITB Berlin and IPK International (2006, p. 18) found that the United Kingdom and Spain are at the top of its consumer confidence survey as well as percentage of household consumption. Termed as a willingness to buy, said factor represents increased demand in the UK during 2007, and as the United Kingdom’s placement in this category has consistently been at the top, bodes well for the continued growth forecast in the industry. The growth in eCommerce has shifted the manner and way individuals utilize travel services. Originating in a paper on packet switching by Leonard Kleinrock of the Massachusetts Institute of Technology in 1961, the theoretical underpinnings of Klienrocks work set the stage for the ARANET which was the distant forerunning to the internet (Internet Society, 2007). That beginning has reshaped the manner of global commerce, information availabilities, and created an entirely new set of industry classifications. One such manifestation is illustrated in the travel industry. The ability to search large quantities of data easily and instantly through varied online web sites, and travel agencies without any sales or pressure tactics makes the internet a technology that is ideally suited to the travel industry. In this medium consumers can search and explore at their leisure at any time reviewing all manner of destinations, travel times, pricing and comparative offers. This used to be the exclu sive domain of travel agencies, the search for fares, times, routes, seating, destinations and packages, through information networks that were unavailable to the public. Consumers do not have to queue at call centers, telephone or take a trip to High Street travel agencies, they can simply click online and search easy to find categories from their Internet browser. Online travel agents are able to offer 24 hour access to information that consumers can access and compare at any time, representing a boon to locating the best prices, dates, deals, destinations and packages. The online travel industry is just a decade old, however the impact of online agencies has been tremendous (Economist, 2005). The benefit of the Internet to consumers and travel providers such as airlines, hotels, car rentals and associated sectors is that it saves administrative costs enabling them to offer lower fares and rates (Economist, 2005). There are 37,600,000 internet users in the United Kingdom estimated for 2006 against a population of 60,000,000 people representing a 62.5% penetration rate with user growth rising by 144% between the period 2000 and 2006 (Internet World Stats, 2007a). The UK ranks 6th globally in the total number of Internet users (Internet World Stats, 2007b), and ranks 20th on terms of penetration rate (Internet World Stats, 2007c). Table 3 – Top 20 Countries with the Highest Number of Internet Users (Internet World Stats, 2007b) Rank Country Internet Users Population (2006 est.) Internet Penetration 1 United States 209,024,921 299,093,237 69.9% 2 China 123,000,000 1,306,724,067 9.4% 3 Japan 86,300,000 128,389,000 67.2% 4 Germany 50,616,207 82,515,988 61.3% 5 India 40,000,000 1,112,225,812 3.6% 6 United Kingdom 37,600,000 60,139,274 62.5% 7 Korea (South) 33,900,000 50,633,265 67.0% Table 4 Top 20 Countries with the Highest Number of Internet Users (Internet World Stats, 2007c) Rank Country Penetration (% Population) Internet Users Latest Data Population (2006 Est.) 1 Iceland 86.8% 258,000 297,072 2 New Zealand 76.3% 3,200,000 4,195,729 3 Sweden 74.9% 6,800,000 9,076,757 4 Portugal 74.1% 7,782,760 10,501,051 5 Australia 70.7% 14,663,622 20,750,052 6 Falkland Islands 70.4% 1,900 2,699 7 Denmark 69.4% 3,762,500 5,425,373 8 United States 69.3% 207,161,706 299,093,237 19 Netherlands 65.9% 10,806,328 16,386,216 20 United Kingdom 62.5% 37,600,000 60,139,274 The significance of these figures is that online travel agencies effectively are accessible to 62.5% of the UK population, which becomes more imposing when one considers that 16.7 million United Kingdom residents traveled outside of the country during 2006 (National Statistics, 2007). The utilization of travel outside the UK is utilized as internal country travel represents means generally using short air trips, train, car and coach for brief trips and stays and does not factor into the type of business profile utilized to a high percentage by High Street travel agencies. The impact of the Internet has caused a dramatic decrease in the number of brick and mortar travel agency locations in the United Kingdom as a result of shifting consumer booking patterns. During 2005, the intrusion of the Internet into the brick and mortar travel agency business caused 28 travel agency companies to fail, not to mention the numerous closing of the offices of the larger chains (m-travel.com, 2005). I n 2005, the number of brick and mortar travel agencies totaled 6,124, down considerably from the 7,513 in 1989 (m-travel.com, 2005). The good news is that cruise ship travel is up substantially, and the travel / tourism industry has been experiencing solid growth. However, the cruise ship segment is the sector of the industry that has shown the most dramatic gains. Lines such as Carnival, Princess, Celebrity and Royal Caribbean have either ordered or put into service over 30 ships in a few years representing a tremendous capital investment (Prestige Travel Systems, 2007). The lure of cruise ships lies in their first class accommodations and immersing passengers into a totally contained package of luxury, gourmet meals, on ship shops, athletics, movies, entertainment, restaurants all while cruising to destinations. Carrying in the area of 4,000 passengers, with 10 to 15 decks, the typical cruise ship boosts in the area of 10 restaurants, 250 waiters, and most are the same size or larger than the Queen Mary 2 (Guardian Unlimited, 2006). Industry executives in the cruise ship sector report that projections in cruise ship travel forecast it to increase in 2007 (Cruise Critic, 2006). The growth of this segment is good news to brick and mortar travel agencies as airline travel booking has been and is shifting to the online sector. The airline travel segment as a result of the Internet, and user penetration in the UK, 62.5%, has seen an increase in online bookings to the point where it now registers 53%, according to a survey conducted by Accenture (2005). The Report stated that 63% of respondents have booked hotels online, and that nearly two-thirds of those responding to the survey indicating that they expect to increase their use of low cost airlines where price is the primary consideration (Accenture, 2005). One of the key facets uncovered is that consumers are highly price sensitive and that since the 2003 survey it was noted that there has been a significant shift to online bookings from a live agent (Accenture, 2005). Table 5 – Primary Method of Booking Business Travel (Accenture, 2005) Online 53% Phone with a live agent 27% In person 12% Other 8% Table 6 – Internet Use for Flight Arrangements (Accenture, 2005) Research flight times and availability 79% Purchase airline tickets 66% Update and or change reservations 28% Specify personal flight preferences 26% Airline check in 22% Access account history or receipts online 19% None of the above 12% Other 2% Table 7 – Personal Travel Preferences, Airline Type (Accenture, 2005) Major network carriers 48% Low cost airlines 46% Not applicable 5% Other 1% The foregoing indicates a high do it yourself mode in airline bookings whereby the comparisons are rather straight forward. Features incorporated into online sites such as arranging your own seating has proved to be extremely popular, as has the printing of boarding passes and tickets (Economist, 2005). In fact, many online travel agencies are offering more than simply travel tickets and accommodations. Some have gifts shopping, hotel ranking sites, comments from other travelers, tickets to events and more, all in the effort to make the experience personable and get consumers to either remain on the site longer or return (Economist, 2005). As indicated under Table 6 Internet Use for Flight Arrangements, 79% of Internet users utilize online sites to research flight times and availability, while 66% actually purchase tickets. Naturally the more comfortable one

What is Golf?

Of all the games ever invented by man, golf, in my opinion, is by far the greatest. Golf is different than other games. Golf challenges the mind, body, and soul. Golf is not a game that is meant to be played against other people or even against the course. It is a game that challenges the individual. It forces a person to make decisions that can lead to a feeling of great accomplishment or to a feeling of hopelessness and despair. To the average person golf may be just a game, but to millions of golfers worldwide, it is more than just a game, it is a way of life. It is something that is lived and breathed, it is royal and ancient, and it is the greatest game ever invented. Golf as we know it today originated from a game played on the eastern coast of Scotland in the Kingdom of Fife during the 15th century. Players would hit a pebble around a natural course of sand dunes, rabbit runs and tracks using a stick or primitive club. Golf is the greatest game ever played because of its history, difficulty, and views. Golf as we know it today originated from a game played on the eastern coast of Scotland. Golf is one of oldest sports that we play here in America. The history of golf impacts how we play it today greatly. Golf is a game of integrity, honesty, and tradition. It is the only sport where you have to give yourself a penalty, even if no one saw it. we do this because golf is a game of gentleman and we are upholding the integrity of the game. Today's golf courses consist of 18 holes or a front nine and a back nine. However, prior to 1764 this was not the case. The Old Course at St. Andrews is the oldest known, and most likely the first course ever constructed. It consisted of 12 holes, 11 of which were played. The course started at the center of St. Andrews and followed the lay of the land out to the town of River Eden. After reaching the 11th hole, the players would turn around and play 11 holes back using the same greens and holes. Thus, a full round consisted of 22 holes and only 11 greens. In 1764, the Royal and Ancient rules committee cut four holes out of the course whic h reduced the amount of holes on a course to today's common 18. As more courses were built, course architects began to construct 18 separate greens to add both character and safety to the courses. A common joke is that the reason we have 18 holes is because there is 18 shots of whiskey in a bottle. Golf’s history is one reason why this game is so great, because we still try to play the game the same way our ancestors did. You would think since golf is so difficult that less people would play it. Well the reason people do play golf is because they want the challenge. A beginning golfer can go to the range and hit 300 hundred terrible golf shots and hate the game. As soon as he hits that one perfect shot he gets hooked again, because there is nothing better than seeing that golf ball soar through the air. Golf is the only game that an average person can do the same thing that a tour pro can do. In what other game, in what other walk of life, can you perform something that in that moment is as good as it can be? The average person cannot go to a major league ballpark and hit a grand slam to win a game, but when the average person makes a hole in one, it is a shot that no one, not Phil Mickelson and not Jack Nicklaus in his prime, could have done better at that moment in that place. The chance of, and quest for, perfection is what keeps golfers coming back. What makes this game so difficult is because we do it once and believe that we should be able to do it every time. This is what separates the average person from a tour pro. I have hit shots that tiger woods would be satisfied with, the only difference is that he does it much more often than I do. Golf is the most difficult game in the world but that is what makes it so satisfying and fun. Golf has some of the most amazing views in the world. Some baseball stadiums have good views of city skyscrapers. The rare college football stadium will glimpse a beautiful campus. Our indoor arenas increasingly all look alike and now they are louder than an airport runway. If you fish, hike, surf or ski, maybe you have an argument on this subject, but compared with all the mainstream sports, golf has no equal in terms of the setting. There are hundreds of golf courses that jut into the ocean, hundreds more that wind through forests, hundreds more with majestic mountain views and hundreds more that flow through parkland valleys. Stand on the 18th tee at Pebble Beach, a few feet from the Pacific Ocean with the spray from the waves landing softly on your shoulders, and you will never again wax poetic about the Citgo sign behind the Green Monster at Fenway Park. Ask any golf architect that a golf course isn’t just a golf course it’s a canvas where some of the greatest pictures have ever been painted. Golf isn’t just another game to a golfer, it is a way of life. There is no other sport that can frustrate you so much one shot but then you can be the happiest person in the world the next. There are many things that make golf great, but its history, difficulty, and the views you see are what make the game the greatest ever. No other sport compares and it’s a shame that many people wont give this great game a try because they think it’s an old man sport. They are missing out on one of the greatest experiences of their life.

Medicare and Medicaid Essay

Medicaid and Medicare are two different government programs. Both programs were created in 1965 to help older and low-income families be able to buy their own private health insurance. These programs were part of President Lyndon Johnson’s â€Å"Great Society† plan, a commitment to helping meet the needs of individual health care. They are social insurance programs, which allow the financial load of patient’s illnesses to be shared by other healthy, sick, wealthy, and lower income individuals and families. Medicaid insurance covers approximately 60 million Americans, according to their income. Medicaid is larger than any other single private health insurance program. The criteria for participating would include those who are unable to work due to disabilities, anyone who receives Aid to Families with Dependent Children (AFDC), as well as single, pregnant women who fall below the Federal Poverty Level (FPL). In 2011, the FPL for a family of four was set at $22,350 . This amount is updated yearly. Medicaid also helps those who are part of the Supplemental Social Security Income (SSI) program (Mann, 2012). Funding for Medicaid comes from the government as well as each state’s department of SSI. They are also responsible for administering funds. In the other hand, Medicare is a federal government program that offers individual health care insurance to those who are 65 or older, and/or have a disability, no matter what their income level. Taxes that are deducted from one’s payroll helps pay for the Medicare program. Medicare is intended to benefit seniors, younger people with specific disabilities, and people with end stage renal disease. The Medicare program has four parts; Parts A, B, C, and D. The social security department pays for a portion of Part A. Part A helps pay for inpatient hospital care, skilled nursing care, hospice care and other services. Part B is paid for by the monthly premiums of people enrolled and by general funds from the U.S. Treasury. It helps pay for doctors’ fees, outpatient hospital visits, and other medical services and supplies that are not covered by Part A. Part C (Medicare Advantage) plans allow you to choose to receive all of your health care services through a provider organiz ation. These plans may help lower your costs of receiving medical services, or you may get extra benefits for an additional monthly fee. You must have both Parts A and B to enroll in Part C. Part D (prescription drug coverage) is voluntary and the costs are paid for by the monthly premiums of enrollees and Medicare. Unlike Part B in which you are automatically enrolled and must opt out if you do not want it, with Part D you have to opt in by filling out a form and enrolling in an approved plan. The history of Medicare began decades ago in 1945, when President Harry Truman had a vision that Americans should have affordable health care. He fought for the idea, but it was an idea before its time. Medicare is a health care insurance program, which put simply is overseen by the United State Federal Government. Today the chain of acronyms, which oversee Medicare, leads to Health and Human Services, HHS, and the Center for Medicaid and Medicare Services, CMS. In 1945 Harry Truman was called a socialist. Today the same label has been pinned on President Obama. Perhaps the real question might be how does a country provide all of its citizens and residents health care without some level of socialism? In 1965 when Lyndon Johnson was President, he signed into law Medicare and Medicaid, which is a program that offers assistance to the indigent population. Ironically, the first person to enroll in Medicare was the former President Harry Truman. Over the following years, from 1965 to present, the provisions of Medicare have expanded. In 1972 benefits for speech therapy, physical therapy and chiropractic visits were added. This was also the year that payments to health maintenance organizations were added to the potential benefits. It was 1982 when hospice benefits were added on a temporary basis. Hospice became a permanent benefit in 1984. The next big change came in 1997 when Medicare added a Part C, Medicare Plus Choice which translates as health insurance programs offered by private companies but approved by Medicare. When Medicare first went into effect the monthly premium for Part B, medical insurance, was three dollars. As it stands today in year 2010, Part A, hospital premium, is $254 to $461 per month. Part B, the medical insurance portion, is $96.40 for those individuals whose income does not exceed a certain amount. There are also multiple co-pays and carve-outs, which further increase the cost to the patient. The ceiling restrictions put on various costs, such as the daily allotment for hospital stays and skilled nursing facilities, often do not fully cover the patient’s expenses. Today, Medicare recipients must carefully review their Medicare benefits and compare and contrast them with their private insurance. Some providers do not take new Medicare patients. There are benefits that are the responsibility of the Federal government, and others that belong to the State government. It is a challenge for elderly patients to even understand their benefits. Medicaid and Medicare both play important parts in paying for health care for seniors. They are, however, very different. There are many details, but here are three big differences. Variability: First, Medicare is more or less the same in every state, but Medicaid rules vary widely state by state. You must know which state a senior is living in, before you can decide whether they are eligible for Medicaid, for example. Eligibility: The second difference is eligibility. All seniors who paid into the Social Security system are eligible for Medicare. By contrast, Medicaid is a welfare program, so that a senior must have low income and limited assets in order to qualify. Those income and resource limits vary by state. Usually seniors apply for Medicaid through a local Medicaid office or begin the application process with the help of a nursing home or other facility’s staff member. Coverage: The third difference is coverage. Medicare currently pays for 80% of the cost of doctors and hospitals. Congress is now considering whether to add coverage for prescriptions. Medicare will pay for part of nursing home costs during the first 100 days after a hospital stay, but not otherwise. By contrast, Medicaid provides the majority of funding of nursing home residents in the nation. Often a senior enters a nursing home with certain assets and has to pay for the cost of care until they run out of money. Then Medicaid steps in and pays for the remaining part of the nursing home stay. If the senior is married, the spouse not living in the nursing home gets to keep a modest amount of income and resources in order not to be impoverished. Currently, all states must allow a spouse to keep at least $1,383 of the monthly family income and at least $16,824 of non-exempt resources. Certain resources are exempt, of which the most important is their principal residence, if they own it. It is possible to transfer certain assets to other family members, but the rules are strict and vary by state. You may also be able to obtain Medicaid-funded services for the senior in his/her home. Eligibility requirements vary by state. The varying structures of Medicaid and Medicare health care plans have resulted to conflicting incentives with respect to dual eligibility in beneficiaries without coordinated care. The main interest of both health care plans is to cut medical costs and none of the plans has an incentive that accounts for the quality of health care services offered. Medicare program is run by the federal government and individuals who are eligible for the program are those above 65 years of age, irrespective of their earning and young individuals who are disabled and have qualified for Social Security’s disability. Medicaid on the other size is a health care plan run by the state and provides insurance cover for all income-based employees of all ages. One of the key strengths of both plans is that that they give individuals a chance for dual eligibility. It is essential to offer extensive acute as well as long-term health care services for dually eligible beneficiaries of both Medicaid and Medicare. One major weakness of Medicare is the fact that it does not provide insurance cover for services like acute care dental, transport services and vision services. The major service that is not covered by Medicare is long-term care. Moreover, it majorly covers for the elderly and does not serve the population that is below 65 years. Medicaid on the other part has a weakness in that it is more costly compared to Medicare. Moreover, unmarried patients must be financially broke in order to qualify for Medicaid. It is however evident that all services that are not covered by Medicare are paid by Medicaid h ealth program. Medicaid and Medicare have been the principal means through which a large portion of the population gains access to health care in the United States. It is however evident that Medicaid is more committed toward promoting health care access compared to Medicare. In the year 1960, about ten million United States’ citizens were enrolled in Medicaid. This number has gradually increased and currently, the program covers a total number of citizens exceeding forty one million. The minimal commitment of Medicare is owed to the fact that there has been no primary expansion of eligibility requirements from the 1970s. A good example of Medicaid expansion program that has led to increased accessibility to health care is the State Children’s Health Insurance Program. This program provides insurance cover to children from low-income families. With the ever-rising costs of health care, both Medicare and Medicaid health plans are struggling to establish equilibrium between access expansion and cost regulation. A major similarity between both plans is that the government funds them and they work in partnership to provide health care costs cover to the poor and elderly population. The cost growth risk is one of the consumer risks associated with both Medicare and Medicaid health care plans. Inadequate health care services, is a consumer risk associated with Medicaid. With the increasing number of insured patients, there are inadequate primary care doctors. Physicians in majority of the states are discouraged by Medicaid health care plan. It is therefore common for individuals covered by Medicaid plan to report poorer health condition compared to the uninsured and those covered by private programs. A feature associated with Medicare program is prohibiting doctors from receiving health care payment that is more than the amount supposed to be paid by Medicare beneficiaries. It is thus not surprising to find some physicians refusing to provide health care services to Medicare patients on the grounds that the program pays an amount that is less than the costs. Fraud and waste, is another consumer risk that is associated with Medicaid and Medicare health care programs. With so many people enrolled in these programs, fraud is a common issue. The issue of waste and fraud is prevalent due to the fact that there is limited oversight to suppliers, providers and other people taking part in the health care plans. There are some recommendations that be suggested to improve the health care plan. One of the recommendations for Medicaid is to give greater support to uniform eligibility. This would help in solving the issue of unmarried patients’ requirement to be low-income earners so as to be insured. Another recommendation is for the program to increase the amount of money paid to physicians taking part in the program. This would increase accessibility and the quality of health care services provided to Medicaid patients. Due to the fact that Medicaid is more expensive compared to Medicare, effort should be made to reduce the costs. This would also minimize the consumer risk of increased costs. One recommendation for Medicare program is expansion of coverage, access and eligibility requirements. Currently, only people aged 65 and above are eligible for Medicare cover. Including the rest of the population would promote accessibility to health care. Another recommendation is reduction in Medicare spending, which help in cutting down the costs of health care services for insured patients. It is also recommendable for Medicare to expand the range of services pr ovided to beneficiaries. Long-term health care services and other services like transport services should be issued. This is owed to the fact that the beneficiaries are the elderly population and disabled children who may have limited access to transportation facilities. In conclusion Medicare and Medicaid are two U.S. government programs that guarantee health insurance for the elderly and the poor, respectively. With Medicare, medical bills are paid from trust funds, which those covered, have paid into. It serves people over 65 primarily, whatever their income; and serves younger disabled people and dialysis patients. Patients pay part of costs through deductibles for hospital and other costs. Small monthly premiums are required for non-hospital coverage. Medicare is basically the same everywhere in the United States and is run by the Centers for Medicare & Medicaid Services, an agency of the federal government. Medicaid is an assistance program in which Medical bills are paid from federal, state and local tax funds. It serves low-income people of every age. Patients usually pay no part of costs for covered medical expenses. A small co-payment is sometimes required. Medicaid is a federal-state program. It varies from state to state. The state and local governments within federal guidelines run Medicaid. References 1. Fong, Tony. (2005). Assessing Four Decades of Medicare, Medicaid, 6-7, 24, 42 http://hs1.farmingdale.edu:2177/docview/211948589/13AE0E52EFA2427EF35/8?accountid=8066 2. Berkowitz, Edward (2008). Medicare and Medicaid: The Past as Prologue. Health Care Financing Review29. 3: 81-93 http://hs1.farmingdale.edu:2177/docview/196958775?accountid=8066 3. Carlson, G. (2009). Difference between Medicaid and Medicare. Health Feature articles http://missourifamilies.org/features/healtharticles/health46.htm 4. Medicaid and Medicare, pgs. 1-16 http://www.coburn.senate.gov/public/index.cfm?a=Files.Serve&File_id=4d8184 9a-33fa-40c0-a995-e7f17b1d8a47 5. Pamela Farley Short, Lauren McCormack, Judith Hibbard, James A. Shaul, Lauren Harris-Kojetin, Michael H. Fox, Peter Damiano, Jennifer D. Uhrig and Paul D. Cleary (2002). Similarities and Differences in Choosing Health Plans. Medical Care, 40(4), 289-302 http://www.jstor.org/discover/10.2307/3767833?uid=3739832&uid=2129&uid=2134&uid=2&uid=70&uid=4&uid=3739256&sid=21101469438031 6. The Henry J. Kaiser Family Foundation (2009). Focus on Health Reform. Health Reform Opportunities: Improving Policy for Dual Eligible, pgs. 1-7 http://www.kff.org/medicaid/upload/7957.pdf

The New Jim Crow Mass Incarceration On The Age...

Summary The New Jim Crow: Mass Incarceration on the Age Colorblindness written by legal scholar, Michelle Alexander, explores a new caste system that targets black or brown men across improvised communities in the United States. According to Alexander, The New Jim Crow laws were created to hinder the growth of black or brown men by using the criminal justice system to enslave them into a vicious cycle of oppression. The Jim Crow laws that relished our nation’s history so many years earlier has resurfaced and consequently lodged many minority men into second class citizenship and allow law enforcement officers to saturate black communities and discriminate against citizens that fit a certain profile—black or brown. Alexander reveals a†¦show more content†¦Segregationist began to focus toward law and order as criminal activity surged in the 1960s; which included riots that emerged after the assassination of Martin Luther King, Jr. Ultimately, presidential candidates began to exploit the behavior of minorities; which appealed to most conservatives and the ground work began to destroy the already futile black man. In the 80’s, President Ronald Regan, declared a â€Å"War on Drugs,† which began to utilize criminal justice systems to shuffle black and brown men into a world of injustice. The mass incarceration of these men are for minor, non-violent drug offenses; which carry brutal sentences and entrap these black and brown men into an unforgiven reality of societal and financial discrimination. Alexander unveiled the budget increase for several major governmental agencies such as the FBI—funding increased from $8 million to $95 million with in a four-year span. The War on Drugs continued well after President Ronald Regan left office. All of his predecessors continued to wage a war on street crime to win votes from the American people, Republicans and Democratic candidates alike began to dismantle social programing and implementing stiffer penalties toward convicted felons. Alexander reveals that by the turn of the twenty-first century 2 million people were cattle into penal systems and millions more were being discriminated against for employment,Show MoreRelatedThe New Jim Crow : Mass Incarceration1347 Words   |  6 PagesHunter Silver Dr. Kendall Smith English 103-4120 10 November 2015 High Incarceration Rates Due to Racism Racism effects the the high incarceration rates according to Michelle Alexander, the author of â€Å"The New Jim Crow: Mass Incarceration in the Age of Colorblindness. This scholar writes about how the civil rights movement has been taken back by the mass incarceration of black Americans in the war on drugs. Alexander also explains how the severe consequences that these black men carry on afterRead MoreSummary Of The New Jim Crow1742 Words   |  7 PagesWorks Cited Alexander, Michelle. The New Jim Crow: Mass Incarceration in the Age of Colorblindness. New York: New Press, 2010. 261 Pages â€Å"The New Jim Crow† Summary â€Å"The New Jim Crow† was written by Michelle Alexander based off of her experience working for the ACLU of Oakland in which she saw racial bias in the justice system that constituted people of color second-class citizens (Alexander 3); which is why the comparison had been made to the Jim Crow laws that existed in the nineteenth centuryRead MoreThe New Jim Crow Mass Incarceration Essay1797 Words   |  8 PagesJim Crow laws are regarded as part of the racial caste system that operated in the Southern and Border States in the years between 1877 and the mid-1960s. Under the series of the anti-black laws, African Americans were treated as inferior and second class citizens. The laws have been argued to have represented the legitimization of the anti-black racism in the US. The book The New Jim Crow Mass Incarceration in the Age of Colorblindness is written by Michelle Alexander and originally published byRead MoreThe New Jim Crow Written By Michelle Alexander1871 Words   |  8 Pages The book, The New Jim Crow written was written by Michelle Alexander. It was published on January 5, 2010 and is 312 pages long. It is a non fiction book that talks about the re-introduction of the caste-like system that has already resulted in millions of African Americans being locked in jail. During the Civil Rights Era, African Americans were put into a second class status that rejected all of the rights that blacks had previously won in the Civil Rights Movement. This book talks about manyRead MoreThe New Jim Crow Essay example2211 Words   |  9 Pagesï » ¿The New Jim Crow Mass Incarceration in the Age of Colorblindness Revised Edition M I C H E L L E A L E X A N D E R  © 20 I 0, 201 2 by Michelle Alexander All rights reserved. No part of this book may be reproduced in any form, without written permission from the publisher. Request for permission to reproduce selections from this book should be mailed to: Permissions Department, The New Press. 38 Greene Street, New York, NY 10013. Published in the United States by The New Press,