Hcs 440 Economic Terms & Healthcare History

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Economic Terms and Health Care History HCS/440 February 11, 2013 Economic Terms and Health Care History Throughout the history of health care, the economics of this field has changed numerous times. Many factors must be kept in mind when discussing the changes in the economics. The biggest factor is finding the sources to fund health care services. Technological and surgical advances are also factors. When looking at the history of health care economics and the primary funding source, the term supply and demand comes to mind. The funding of health care has always been difficult and will continue to be more difficult because of the lack of resources in the United States. The primary source of funding for medical services has encountered many changes. The increased demand for medical services led to the creation and utilization of health care insurance. This came to be because of the increased need for health care services with lower out of pocket costs. President Harry Truman was the first to propose to Congress that a national insurance program be created and enacted in 1945. It was not until July 30, 1969 when President Johnson signed the Medicare and Medicaid Act. Medicare is a government program that provides medical insurance for people ages 65 and older. Medicaid is a government program that provides medical insurance for adults and families living at or under the poverty line ("How Did Healthcare Come About In The United States?", 2013). The health care industry accounts for 17% of the GOP in the United States. Health care services have grown to be a trillion dollar business. The largest source of funding for health care expenditures is the government. A majority of the funding is from Medicare and Medicaid and the rest is from private sectors. Paying for health care services is continuously changing. It involves payments incoming and
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