JULIO NSG 4074 WEEK 1 DISCUSSION
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Nov 24, 2024
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Uploaded by MajorProton10371
Economics of Health Care
In the US, the cost of healthcare is rising substantially. As the population ages, the
frequency of chronic illnesses increases, medical costs rise, and more people obtain health
insurance, this trend is probably going to continue. The federal government of the United States
was responsible for all healthcare spending in that year. The majority of government spending on
healthcare is allocated to insurance for the elderly and underprivileged through programs like
Medicare and Medicaid
(Duckett, 2020)
. The federal government oversees several well-known
healthcare initiatives, two of which are CHIP and VHA. State and local governments have a
significant impact on the amount of money allocated to healthcare in the United States. Private
businesses bear a large share of the overall healthcare costs in the United States. In 2017, the
amount spent on healthcare by private enterprises totaled $1.1 trillion, or 8% of total healthcare
spending. In the US, a sizable amount of private healthcare spending is allocated to employee
health insurance. Other significant private healthcare initiatives include a range of private health
insurance plans and the Medicare Advantage program, which is Medicare's for-profit equivalent
(Richardson, 2020)
.
Individual families in the US pay the majority of the costs associated with healthcare. In
2017, personal healthcare spending accounted for $1.2 trillion, or 9% of all healthcare spending.
Prescription drugs, hospital stays, and doctor visits are examples of out-of-pocket expenses that
make up the majority of household healthcare spending. Medicare and private health insurance
premiums are two more significant sources of family healthcare costs. In the US, private
companies also contribute significantly to healthcare costs. $1.1 trillion, or 8% of the total
amount spent on healthcare, was spent by private companies in 2017. Employee health insurance
accounts for the lion's share of private health expenses
(Giuntella & Lonsky, 2020)
. Medicare
Advantage, a commercially managed form of Medicare, and other private health insurance plans
are examples of significant private healthcare initiatives. Another significant source of funding
for healthcare in the US is household income. Households spent $1.2 trillion on healthcare in
total in 2017, which accounted for 9% of all healthcare spending. Prescription medication,
hospital stays, and doctor visits are the main out-of-pocket costs that make up a household's
healthcare budget. Premiums for Medicare and commercial health insurance are two other
significant sources of family healthcare costs. Healthcare expenses are a major concern for the
general public and lawmakers in the United States. Although there are several approaches to the
issue, there isn't a simple fix. Potential remedies encompass decreasing the expenses associated
with healthcare, augmenting the utilization of health insurance, and augmenting governmental
allocation towards healthcare
(Giuntella & Lonsky, 2020)
.
References
Duckett, S. J. (2020). Economics of hospital care.
Economics and Australian Health Policy
, 93-
114.
https://doi.org/10.4324/9781003115441-5
Giuntella, O., & Lonsky, J. (2020). The effects of DACA on health insurance, access to care,
and health outcomes.
Journal of Health Economics
,
72
,
102320.
https://doi.org/10.1016/j.jhealeco.2020.102320
Richardson, J. (2020). The health care financing debate.
Economics and Australian Health
Policy
, 192-213.
https://doi.org/10.4324/9781003115441-10
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