Economic Terms and Health Care History
February 13, 2012
History and Evolution of Health Care Economics
Economics is a “social science concerned with the description and analysis of production, distribution, and consumption of goods, products, and services.” Resources are abundant in every economy, which include natural resources of capital, labor, and land but be fixed and limited because of their use to best satisfy society. A commodity range is produced to meet the unlimited wants of individuals in today’s society. Resources are limited and wants are unlimited, resulting in an economy problem of not producing products, services, and goods in an unlimited quantity (Getzen & Moore, 2007).
History of Health Care
During the 1900s, health care improved, medicine and hospitals became more important, and Blue Cross and Blue Shield were born by offering private health insurance. Health care costs have continued to rise over the years, which has especially been hard for low-income individuals who cannot afford health insurance so declined to get medical treatment. More private health insurance companies became available when the hospitals became decentralized (Walker, 2008).
Health care economics have changed over the years as more individuals have become sick and need medical treatment. Health care is the largest industry accounting for about one-eighth of the economy. Uninsured individuals are growing daily with about 50 million individuals without health coverage, which has caused problems for those who need medical treatment but cannot afford it. When health care costs are high and individuals get treated and cannot afford to pay for it, it creates elasticity. Inelasticity is created when prices do not decrease (Walker, 2008).
Within the last several years, government has tried to create a nationalized health care system so the health care industry can be revolutionized. The Affordable Care Act was...