Custom essay writing services

Saving students' time, nerves,
and grades since 2004...
Print   Bookmark & share   CommentNeWavEssays » Services » Custom essay writing » Samples » Health Care Spending in the United States

Health Care Spending in the United States sample essay

prices for custom essaysanswers to frequently asked questionsbuy custom essay now

One of the issues that is widely discussed and debated concerning the United States economy is healthcare system. Unlike in the majority of developed and developing countries, the healthcare system in the United States is not public, meaning that the state does not provide free or cheap healthcare services. In Canada or Great Britain, for example, the government funds healthcare providers through taxes, and such a system is called social. The United States, on the other hand, being a profoundly capitalistic country, opted for another route and passed the burden of healthcare spending on private consumers as well as other institutions such as employers, insurers, etc. Everything would have been fine unless statistics showed dramatic increases in healthcare spending over the years. American healthcare system is the most expensive one in the world; in 2004 America spent about 16% of nation’s Gross Domestic Product on healthcare services, which is approximately $1.9 trillion (Economist, 2006). Furthermore, annual spending continues to grow 10 to 15 percent every year (Davis et al., 2003), which is faster than the national inflation growth rate. Thus, we can see that healthcare spending in the United States requires immediate analysis and new policy solutions, otherwise it would become an uncontrollable fund-consuming machine.

American economists are now trying to understand the nature of the growing healthcare costs, and to analyze its impact on the overall nation’s economy. Health and Human Services Department identified the major trends that lead to the rapid growth of healthcare spending. These include (but are not limited to) “changes in healthcare utilization, population demographics, price inflation, and advances in medical technology” (HHS, 2005). Discussion of these causes is not the purpose of this paper, although their analysis would provide a much more understandable picture of rising healthcare expenditures. But it is important to note that the increase in healthcare spending directly influences the economy of the United States and its economic development. It is a well-known fact that healthcare expenditures on employees is the employers’ hot issue for these healthcare costs are much higher than labor, litigation, or even energy. As healthcare prices increase, employers, those who carry a significant portion of the burden, attempt to pass healthcare spending to their employees. As a result, employees are less attracted to join such companies, which in turn results in decreased productivity. The result of this chain is obvious: a slowdown of overall nation’s economic growth.

Healthcare spending growth rate trends show astounding estimates. Since 1960, spending has risen from $27 billion ($143 per capita; 5.1% pf GDP) to amazing $1,678.9 billion ($5,670 per capita; 15.3% of GDP; 2003 data) (HHS, 2005). Recent research estimated that by 2013, healthcare spending will be as high as 18.4% of the GDP. It is important to note that the gradual move from hospital to ambulatory setting has resulted in much higher spending on outpatient hospital services and prescription drugs. The spending growth for these two trends is much higher than the overall healthcare cost growth, which, in fact, increases faster than such important economic indicators as GDP growth, inflation growth, and population growth rates.

Although there is a belief that great proportion of healthcare funding comes from out-of-pocket money, in reality private insurance is the major source. Generally, private and public sectors almost split the overall funding evenly, public sector accounting for 55% and public – for 45% respectively (HHC, 2005). The table below illustrates the sources of funding in 2003:

Sector Source Spending ($ b) Spending in %

Private Insurance 600 36%

Out-of-pocket 230 14%

Other private ~83 5%

Subtotal 913 55%

Public Medicare 283 17%

Medicaid & SCHP 267 16%

Other public ~200 12%

Subtotal 750 45%

Total ~1,679 100%

The nation’s health dollar; sources of funding; data taken from HHC website. Numbers rounded.

Other private includes privately funded construction, non-patient revenues, and industrial in-plant. Other public means worker’s compensations, public health activity, hospital subsidies and school health, as well as several governmental departments such as Department of Defense and Department of Veteran Affairs.

Such a dramatic increase in out-of-pocket spending is caused by the increase of spending on prescription drugs, greater utilization, increases in price, new medicines, and most importantly the fact that almost 100% of consumers of prescription drugs – the seniors – pay out-of-pocket nowadays.

It is important to note that the proportion of public spending has increased as compared to year 1990 when it was 41% of total healthcare expenditures. Public spending continues to grow relative to the overall spending.

As we can see, current situation in the healthcare system of the United States is far from perfect. As Economist journal authors have written in an article about current problems of American healthcare system, “the world's biggest and most expensive health-care system is beginning to fall apart” (Economist, 2006). Thus, healthcare department secretary and President George W. Bush should take immediate measures in order to curb the tremendously fast growth of healthcare spending. So far American healthcare system is the most expensive in the world, and still it continues to grow faster than population, Gross Domestic Product, or inflation. The impact of the growing prices cannot be ignored, since it directly influences the lives of the public and of the employers, and economy at large.

One of the solutions to the problem of rapidly rising costs would be to try to gradually shift from the belief that employers should provide healthcare insurance for employees. I do not mean they have to quit providing insurance, but they have to grant it in such a way that employees use it wisely. Typically, employees spend a great deal of their employers’ money for not so important matters; they do not think twice before attending a doctor because it is free for them. If such consumer attitude of employees could be removed or at least changed, companies would spend much less on healthcare of their employees. One of the techniques effectively utilized by the major retailer is to have literally all employees perform some physical job at least once a day. Older people and those with health problems would be deferred by such requirements, and naturally younger and healthier ones would only stay in the list of candidates. This way, these healthier workers would naturally spend less money on medical assistance, which would in turn make the life of the employer easier, and diminish spending on healthcare services.

Finally, I would like to conclude that healthcare expenditures nowadays in America account for almost one fifth of the nation’s Gross Domestic Product. Both GDP and healthcare spending in the United States are the highest in the world. The country is developing economically, demographically, and culturally, and thus the population, economy, and inflation grow. However, the growth rate of healthcare spending is much faster than any other economic indicator of the country, which draws healthcare system an unpleasant reality for the government, businesses, and economists. Immediate amendments must be implemented in order to trammel the growth of costs, because this growth influences economy in a negative way. And even though capitalism is a prosperous system to live in, still human health is something more important and more sacred than money. And turning medical treatment, nursing, surgeries, and saving lives of citizens into a big business is way too much. The healthcare system of the USA looks like it had forgotten its primary function, which consists in not beating the economic records, but in simple, humane, and natural activity which is helping people fight their health problems and saving human lives.

Bibliography

1. Desperate measures. (2006). Economist on-line journal. Retrieved May 24th 2006 from http://www.economist.com/world/displaystory.cfm?story_id=5436968

2. Davis, K. and Cooper, B. (2003). American Health Care: Why So Costly? Testimony for the Senate Appropriations Subcommittee. The Commonwealth Fund. Retrieved May 24th 2006 from http://www.cmwf.org/publications/publications_show.htm?doc_id=221624

3. Effects of Health Care Spending on the U.S. Economy. (2005). Health and Human Services Department. Retrieved May 24th 2006 from http://aspe.hhs.gov/health/costgrowth/
prices for custom essaysanswers to frequently asked questionsbuy custom essay now

Order custom essay now!
Comment on this page Your opinion matters! Simply leave a comment on this page and share your thoughts.
plain text, please Enlarge field
(spam filter)
 
List of samples
Reading responseSouth Asian Indian Families in AmericaResearch Proposal:Vietnam WarPepsiCo’s International StrategiesPorphyria's LoverChinese Human Smuggling ProblemAntebellum ReformsCandide: Hope vs. MisfortuneLEBANONEconomies of Scale and the Great Merger WaveFree Will vs. DeterminismScientific Management in 21st CenturyRole of Liberty in RevolutionsThe Existence of GodMarnelle Tokio’s "More Than You Can Chew"What are my greatest achievements?Information Technology: Software and HardwareReengineeringLegal Driving for Illegal ResidentsBartleby the ScrivenerMy Body is My Own BusinessSHAKESPEARE IN KUROSAWA’S FILMSDefining MarriageQuality of Healthcare ServicesPerson-Centered TherapyMilinder recycling companyIndustry RankingsWhy should we read?Relics and the Romanesque ChurchesEmerson’s Books ComparisonEnlightenment in United States LegislatureDescribing a HeroUSA Patriot Act and LibrariesPresident's ProposalLord of the Flies: Movie vs. the BookExpressionists: AlienationCrime and Sanction- Do These Notions Hold in Our Present Day?Hidden Treasures: the Forgotten ArtIndigenous vs. European worldviewsCriticizing Peter FittingEthnic Groups in AmericaComputers and Electronic CommerceHealthcare Provider Supply IssuesHuman AndroidLear & Oedipus: Lack of KnowledgeUse of Statistics in Human ResourceShakespeare’s ShylockEnron Financial HealthRegression AnalysisDescribing my Favorite DayAuditing SamplingAdvertisement Analysis Using the Toulmin MethodFormalist AnalysisThe Importance of VeterinaryFreedom in the WorkplaceThe Impossibility of LanguageSuccessful Fashion Marketing AnalysisObligations to SocietySynthesisSylvia Plath’s DaddyThe Meaning and Possibility of FaithSevere Acute Respiratory SyndromeSHAKESPEARE IN FILMSComparison and Contrast of Three Monotheism CulturesI am a Man More Sinned Against than Sinning: Lear & OedipusComputer NetworksLes MiserablesMy best and worst learning experienceSample Size DiscussionWhen Markets Melt AwayModernization and Commodification in SportCreation Myths vs. Origin of SpeciesHuman RightsIllegal Immigrants: Deprived?Chuck Close's EmmaWal-MartGentlemen’s AgreementSimple Regression AnalysisMajor Political Parties in the USIndustry and Corporate RiskEmil’s TeachersMasters in Fashion Buying & Promotion Personal StatementJapanese American InternmentGrades Aren’t Always Indicators of LearningChina - NAFTA Free Trade AgreementAddiction to SportThe Godfather: Movie vs. the BookEffect of the Equality of Sexes in World War IIThe World War IICase Study: Effective Management at FordLear & Oedipus: Image vs. RealityMigration into the United StatesAthletics in Ancient GreeceInstitutional RacismLanguages Spoken in Oakland Public SchoolsHuman BehaviorMoral Obligations of WorkersPsychology of MotivationRococo Artistic StyleHarm ReductionArt Historical Categories: Symbolism and Art NouveauData Input / Output MethodsAmerican Revolution and Bill of RightsRight or Privilege: Healthcare in the U.S.Women and revolutionsDonatello's DavidShakespeare’s As You Like ItFord Motor Company Human ResourceNatureNAVERSON AND STERBAComprehensive report of an “auto manufacturing” industryIndustrial Revolution and ImmigrationRights as ClaimsCotton Industry in ChinaOperations Management & ProductivityArnold SchwarzeneggerInflationComputers in Entertainment IndustrySearch EnginesByzantine Art and ArchitectureMedicine and ManagementSecondary Data ReviewSociology: Explanations of CrimeFirst Generation vs. Second GenerationCurrently Acceptable Accounting MethodsThe Trojan WomenPerennialism vs. ProgressivismDropping the Nuclear Bomb?Managing ConflictsSociology 265-asiaMiguel Arteta’s “Star Maps”Roles of Pride and Prejudice in 'Pride and Prejudice'Ancient Roman ArtPublic’s View on U.S. HealthcareThe Greenhouse EffectEffects of Disco Music on SocietyMcDonald's Global Market OverseasCurrent Employment Trend in Healthcare: ShortagesThe Phenomenon of The Objectification and Commodification.Obligations to SocietyPsychological and Ethical EgoismArticle AnalysisCAFTA VS. NAFTALanguage Issues in the United StatesEvolution of Greek SculptureWriting an Essay: A Responsive ActionNike: The Sweatshop DebateRacism in Ralph Ellison's "Invisible Man"Roles of Family and SchoolIndividual and SocietyMarcel DuchampSurrealism: Dream Caused by a Bee Flight by DaliMilitary OrganizationKing Lear: One Passage in DetailCustomer ServicesPantheon vs. ParthenonLEARNING ORGANIZATION: WHAT ARE OUR ROLES?The Turn of the ScrewSimple Linear Regression AnalysisApplication to USFMarketing OrientationMexican War and Civil WarWomen’s Experience and Family LifeGovernment HistoryChina and the United StatesUnited Kingdom Promotes and Harmonises International TradeBritish, French, and Dutch ColoniesObscene Media DiscussionChonitaCONSEQUENCES OF AMERICAN OCCUPATION IN JAPANObligations Before OrganizationNeedsECONOMIC CHANGES IN THE COMING YEARWomen at the WorkplaceLife Style Concept:Looking for Harmony and Life BalanceNew Product DevelopmentOrganization CommunicationsA Poet’s TriumphHealth Care Spending in the United StatesThe Libations Bearers and HamletCognitive PsychologyBodybuilders as a SubcultureCritique of Losing Love, Love and Death, and The NecklaceLiterature Review: Open-source softwareNiccolo Machiavelli's "The Prince"Safe Injection SitesHUMAN RESOURCE MANAGEMENT:STAFFING AND SELECTIONThe Color Purple & Desiree’s BabyDoublethinkJackson PollockWhy did America experience Civil WarJustice of Oedipus and King LearTHE SONDERWEG THESISTelevision NewsPublicity vs. PrivacySearching For Harmony By works of Toni Morrison’s Sula and Leslie Marmon Silko’s Ceremony.Woman’s Place in MarriageGuajilote Cooperativo Forestal, HondurasBusiness ProposalProtecting Planet Earth from the Tallihae AliensSlavery in the Americas:Atlantic Slave TradeShooting at Kent State UniversityRISE OF BIG BUSINESS: RAPID CORPORATE GROWTH AFTER 1860-S IN AMERICA.Dopaminergic pathways in the brain and their role in cognition and motivationSlavery Abolition in the United KingdomA Raisin in the SunSNOWMending WallLooking for a Rain GodMy Reasons for Enrollment in CCNHCostco Strategy for the FutureWhat is the Meaning of Life?Kant and The Categorical ImperativeOffice Software Pros and ConsWassily Kandinsky and Piet MondrianMerits of Options and Futures to Hedgers“A Midsummer’s Night Dream” vs “Angels in America”Scouts or ScoutmasterWhat is Ethnohistory and Why Is It Important?Riordan’s Inventory to Affect EmployeesN’Sync’s It’s Gonna Be MeLeo Tolstoy: Visions of HappinessAuteur perception of reality in “Amores Perros” and “Los Olvidados”CommunityChristianity: Faith and WorksPsychology: Reflection on Publish ResearchEuropean Union Safety Legislation: The Affects on Marketing in the European UnionPersonal Diet and Activity PlanCatholic Belief SystemThe Western and the IndiansOppressed Korean in JapanEconomic History of PortugalUse of Technology in MathematicsSelf-RespectDiscrimination or not?Argument EvaluationsComparison of the Concept of Diagramming between M. Graves, and A. VidlerHow to Keep a Friendship?Law in American Healthcare SystemBanana RepublicHealing Powers of WaterCarcinogensPeople with Different TraitsSecond American RevolutionMorality: Objective vs. SubjectiveDo I believe in Marriage?Obligations and availability of services - advertisingExploring the essence of “THE AWAKENING”What is Knowledge…Blindfold ExperienceHow a Stranger Would View MeTimeless Beauty – Critical Analysis of Beauty CompetitionsTreatment for DepressionHUMAN RESOURCE MANAGEMENT IN HOSPITALITY INDUSTRYAmerican Parties and ElectionsOpposing Prescription Drugs PricesPaul Cezanne’s “Houses on the Roadside”“I Have a Dream” Critical OverviewThe Importance of Ethics in SportPhilosophy of SportGender Relations in the Arab World: Gaze Representation, Voice, and KnowingSociology ProjectFood Journal AnalysisThe Yellow WallpaperEconomic TermsTragic Hero of M. ButterflyNorthwest Airlines: External ImpactsMy Role as a TeacherSTRATEGIC MANAGEMENTPersonal StatementUsing PDA’s in MedicineThe Victorian FamilyAnalyzing Swift’s “A Modest Proposal”How Real is Reality TV?Mel Gibson as Movie DirectorAssisted SuicideWal-Mart: Internal AnalysisChildren SociologyNegligence and strict liability theoriesCross-dressing in Twelfth NightDefining the ManagerSlavery in the Americas:Atlantic Slave TradeNursingEmployee Behavior and Policy ChangeHow does work guide the development of the self?E-commerce Operations Management“Separate but Equal”Palestinian IdentitySLAVERY AS ONE OF THE CAUSES OF CIVIL WARTimeless Beauty – a critical analysis of beauty competitions.David Hume’s Philosophy DoctrineService Encounters ProjectSamsung’s Digital WorldDiscussion of A DollMarijuana: medicine or poison?Management of Organizational ChangeSouth Korean Won: Sept-Nov 2004King Lear JournalIslam, a Short History by Karen ArmstrongPablo Picasso and Henri MatisseShould Pre-Meditated Violence in Hockey Be Tried in Criminal Courts?The Play about “Death of a Salesman”The United States and Canada as Pure Democratic Virtue? vs. Latin American Countries as Pure Totalitarian Evil?Family and Change: Social Change in CanadaLong Bonds vs. Short BondsMontessori PhilosophyMotivational PrinciplesReligion in Mother CourageDavid Anspaugh’s "Hoosiers"Why people over the age of seventy shouldn't driveHamod’s Poem OutlineBenefits of Open Source Software for Developing CountriesTHE RISE OF BIG BUSINESS AFTER THE CIVIL WAR: Expansion of Market Size and Economies of ScaleDiscussion on DeconstructionAir Travel Price IndexThe Color Purple JournalChildren & Society19th Century View on ArtFashion Marketing Admission EssayInfections and InequalitiesHow Location Affects PeopleDiscussing the ONO RuleCase Study: Let it PourHealthcare system: nursing and monitoringComparison of Two Books: Circle of Simplicity vs. Getting Things DoneECONOMIC BENEFITS OF USING OPEN SOURCE SOFTWARE IN DEVELOPING COUNTRIESSuccess Factors for WWERiordan System Design ReportWordsWounded KneeOffice Software Pros and ConsMental Facilities and The Treatment of Their PatientsMultiple Regression AnalysisSkiing is not always glamorousRevolutions in America and FranceCarcinogensKirpke and Proper NamesLe Million: Pioneer of SoundDo Unto OthersJohn Turteltaub’s "The Kid"Van Gogh and GauguinPhilosophy and LawStress Counseling in the Organization ContextQuestions that Really Bother meDescribing the Best FriendVisual WesternisationLEGAL MAZE IN THE EUROPEAN UNIONA legendary person in the U.S. history between 1775-1974Interpersonal Skills: Project ManagementGoal–settingEntertainers and AthletesThe Emperor’s ClubIntelligent Design vs. EvolutionKmart, Wal-Mart, TargetLearning: personal experiencePolitical EcologyThe way Non-Government Advertising shaped American Beliefs.Simple Linear Regression AnalysisHeroism in Nationalist LiteraturePerformance Management and Managing Team ConflictINTERNATIONAL STRATEGIC MANAGEMENTAccounting AssignmentEffects of Social Inequality on ParentingWomen's Role in Patriarchal SocietiesForecasting, Inventory Management, and Materials Requirement PlanningQuine’s View on SynonymyThe Historical Evolution of the United States Monetary SystemHistory of ToledoYield ManagementEmployee MotivationHerbal Medication vs. Prescription MedicationCharles Demuth's Figure Five in GoldUnemployment in the United StatesDrug Availability in the United StatesIngres's "Grand Odalisque" and Manet's "Olympia"Ashcan: George B. Luks' Boy with a BaseballMeaningful Way to RelaxGreenhouse Effect DescribedEthical Issues in the Professions and Business-The Nature of AdvertisingDescribing my Favorite RelativeImmigrants: Friends or Foes?Attribute SamplingThe Day I Was BornMotivational Concepts: the WillVictorian and Modern View of SexualityMarx & Weber Contributions Contrasted Against Other 20th Century WritersRace and Ethnicity in the 19th CenturyDatabase ApplicationsFamily and SchoolIs Atheism Rationally Justifiable?
Questions before you order?

Email now and ask our support managers if you have any questions or concerns before placing your order.

Latest news (RSS)