Healthcare Spending Essay

1265 WordsMay 25, 20126 Pages
Health Care Spending Paper Health care expenditure in the United States continues to outpace the growth in national income as well as in spending, compared to other countries. Health care costs is rising so rapidly that it has forced our nations economy, government, as well as other local, state, and private entities to examine the serious financial problems that face the healthcare system today. Since the failure of the Health Care Reform proposed by the Clinton administration and others, the U.S. will need to be more open to new and creative strategies to overcome the current financial crises we face. The U. S. currently spends 16% of its gross domestic product (GDP) on health care services compared to only 8 to 10% spent in other industrialized nations. Before I can intellectually explain my position on national health care spending several factors must be considered and addressed. The first question to address is what is driving the greatest increase in cost in health care spending today? One could argue that it’s the baby boomers now in their 50’s and 60’s requiring more care, or someone else may claim that the high cost of new technological advances have driven up healthcare costs. Still others might add that physician fees and income is driving up costs and an overly medicated society using prescribed medications and drugs. Well in essence it is a combination of all of these dynamics. Since expenditures are driven by the demand to live longer healthier lives, which is spurred by income and advances in technology that make intervention increasingly affective according to (Fogel, 2009). Fogel further added that evidence shows that chronic diseases declined during the 20th century from 1.0 percent in 1910 to 15 percent as of 2010. These conditions have also dropped in severity of turning into disabilities that impair functioning. Many of the

More about Healthcare Spending Essay

Open Document