HCS/440 Economics: The Financing Of Health Care

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HCS/440 Economics: The Financing of Health Care Week 3 National Health Care Spending HCS/440 Economics: The Financing of Health Care October 22nd, 2012 Charles Sigmund National Health Care Spending Health care is a fundamental human right as it is needed for survival. Receiving that care without breaking the bank or going into extreme debt is part of the “American Dream.” This concept has eroded and in turn has put the nation and our health care system in jeopardy. The amount we spend in terms of the amount of care provided is negatively skewed. How we as a country pay for health care and what we spend it on is largely responsible for this dismal realization. It is possible that with a major overhaul to government…show more content…
The level of current nation health care expenditures is currently at $2.1 trillion. This translated into $7,026 per person and 16% of the Gross Domestic Product (GDP) (ajronline.org, 2008, pg. 1) Categorized expenditures show that the percentage of growth of costs for such things as hospital spending with 7% growth and a total of 31% of what we spend, prescription costs with 8.5% growth, administrative costs with 8.8% growth are growing at unjustifiable rates. Only with Medicaid and physician costs have we seen in drop in growth of costs. Physician costs not growing at the same rate as other expenditures is because of minimal raises is physician fee schedules. Medicaid shrinking costs are largely due to Medicare part D taking over a substantial amount of costs. By not keeping costs in check by way of regulating certain cost control measures we are spending too much on health care without the added benefits more money should bring to the situation. If left untouched health care spending growth eventually will exceed GDP growth causing more inefficiencies or a collapse of our health care system as we know…show more content…
Overall this single payer system would give a universal approach to: how healthcare is paid for thereby drastically reducing administrative costs, eliminate additional costs that uninsured patients incur as everyone would be covered, and increasing the quality of care while reducing costs by promoting preventative care, which is a staple of other countries’ socialized health care programs. Initially the setup of this program would cost more money out of taxpayers’ pocket. Over time this program would lower many costs of health care through not only the aforementioned savings but through additional legislation that would eventually be passed in light of Universal Health Care that would seek to fund and regulate new technology and

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