Economic Terms and Health Care History free essay sample

Greenberg HCS/440 April 1, 2013 Caryn Callahan Economic Terms and Health Care History Throughout hundreds of years, the health care system in America has grown and changed in tremendous ways. From the way health care is delivered to the way it is funded, health care is constantly changing and advancing. This essay will explore the terms and methods associated with health care funding and the history that led to our current world of health care today. In basic general terms, economics is the term given to the science that explains the relationship and correlation between the production, distribution, and consumption of goods and services, as well as the welfare of humankind. Our expanding knowledge of economic trends and principles is what had guided us into the future of health care. One of the most basic principles of economics is the rule of supply and demand. This law states that when the supply of a product or services increases, the demand for it decreases. We will write a custom essay sample on Economic Terms and Health Care History or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Adversely, if the supply were to decrease, the demand would therefore increase. The demand of any given product or service determines the price the average person is willing to pay to receive it. For example, a person would be willing to pay more for a product that is low in supply because it is high in demand. This rule of supply and demand is what has allowed us to learn how to manipulate our economy and control the different ways in which we are able to market goods and services. Our economy has gone through many stages with regard to health care over the past several decades. One of the biggest concerns discussed in health care today is the amount of funding being absorbed by our health care system. Over the course of the past decade, The United States has been faced with a recession that has resulted in higher unemployment rates and lower income levels for a large percentage of Americans. This recent trend in economic stability has focused more attention on the amount of money spent on health care and affordability for the American people. Health care spending in The United States increased toward $2. 6 trillion in 2010. This is more than ten times the $256 billion that was spent in the United States since 1980. The national healthcare expenditure is currently at an all time high in the history of the country. In 2011 the national health expenditure was estimated to be around $2. 8 trillion dollars. It is expected to continue to grow at a rate faster than the growth rate of national income in the near future. Throughout the past 10 years, employer-based health care coverage has increased by 97%, which has put a burden employers as well as employees. Medicare, which provides coverage to the elderly and people with disabilities, has seen a significant increase in enrollment due to the aging of the large baby boom generation. Medicaid enrollment has risen drastically as well, providing health care coverage for those struggling with limited income due to the recession. These increases in Medicare and Medicaid enrollment have caused a dramatic increase in government spending as a result, which has put a heavy strain on both federal and state budgets. The Health care expenditures account for 17. % and of the United States national Gross. According to a report released by the Center for Medicare and Medicaid Services (CMS), the national health expenditure is expected to escalate on an average of 6. 1% from the year 2009 to 2019. During this same ten-year projection period, spending on Medicare alone is expected to grow an average of 6. 9%, and Medicaid alone by 7. 9% per year. In 2009 spending on hospital related services in the United States were estimated at $761 billion dollars and is expected to average an increase of 6. % over the next decade. Funding spent on physicians’ costs as well as clinical services is expected to grow by 5. 4% . The cost of prescription drugs is estimated to increase by 6. 3% during the said projected period. References Heffler S, Smi th S, Won G, Clemens MK, Keehan S, Zezza M. Health spending projections for 2001–2011: the latest outlook. 2002. Blumenthal D. Health care reform at the close of the 20th century. N Engl J Med. December, 2012. Kuttner R. TheAmerican health care system—health insurance coverage. NEngl J Med. December, 12.