Health Care Economics

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Submitted By aries50
Words 1296
Pages 6
Health Care Spending in America
Teresa Foster
University of Phoenix
May 20, 2012
HCS/440
Instructor: Michele Burke

Health care spending in America has been growing by leaps and bounds and has surpassed the national economy. There are many American's that are without proper health care services, because of losing coverage due to the reduction in employment and the recessing economy. With the constant conflict with the current health care reform, legislators are aware that health care spending needs to become a balanced solution. The current health care system in the United States has many holes to fix, the government has made many attempts to bring spending under control. The theory of bring more managed care and competition into health care can potentially aid in bringing spending in health care under control. Because health care expenses are becoming more of a burden on Americans, the choice of going to the doctor and paying living expenses is becoming more evident in most American households (Altman & Wallack, 1996).
Current National Health Care Expenditures According to the National Health Expenditure Accounts (NHEA), it is estimated that health care spending in American has grown annually from estimates dating back to the 1960s. Expenditures include, the net cost for health care insurance, public health services, the cost for medical service and other health related goods, investments that are related to healthcare. During 2010, health care showed an increase of 3.9 percent, compared to the previous year. The NHEA estimates that $8,402 dollars are spent per person or at 17.9 percent of the nation's GDP (Gross Domestic Product). This would be about $2.6 trillion dollars that was spent on health care in the United States in 2010 (CMS, 2012).

Spending Too Much or Not Enough Health care spending is divided into many sectors, spending on…...

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