June 10, 2013
Health Care Spending
The cost of health care in the United States has become increasingly expensive. Because of changes in the economy and circumstances there are many Americans that are out of work, facing increased costs of health care coverage, or began a new job but have to wait for coverage during their probationary period. Until the Affordable Care Act took in effect, the United States was one of the nations that do not ensure health insurance. According to Chernichosvsky and Leibowitz (2010) states, “The United States has the most technologically intensive medical practice in the world” “It also spends more than more any other nation on medical care, but health outcomes in the United States are inferior to those in most other developed nations” (p.205). This paper will discuss the current level national health care expenditures, whether the spending is too much or not enough, whether the nation should add or cut, and how the general public’s health care needs are paid for and financed by various payers.
Current National Health Care Expenditures Current level of National Health Care Expenditures. According to Centers for Medicare and Medicaid Services (2013) states, “the national health expenditure grew 3.9% to $2.7 trillion in 2011, or $8,680 per person, and accounted for 17.9% of Gross Domestic Product” (para 1). The demands of health care can be costly for Americans. The expenses of health care accumulates because of the numerous types of health care ranging from hospitalizations, skilled nursing care, physician care, surgeries, and prescription drugs. According to Bernstein, Hing, Moss, Allen, and Tiggle (2003) states, “Factors that impact health care utilization are increased supply, growing population, growing elderly population, new technology, new drugs, changes in consumer preference and demand, and understanding the risk of diseases” (p. 9). These different components play a vital role in the influence of access to utilization. Nation add or cut spending. Nation add or cut spending. According to Health care costs (2013) states, “Spending on prescription drug and new medical technologies have been cited as a primary contributor to the increase in overall health spending” (para 4). Prescription drugs cannot be eliminated because many of Americans will need various prescriptions for different disorders to help them manage their disease. The new advances of medical technology have created ways to provide quality care through the use of electronic medical records, robotic assisted surgeries, and other innovative procedures. Health care costs can be reduced in the following ways by preventative programs, exercise programs and lowering insurance costs for consumers. For example, Consumers participating in preventative or exercise programs can lower their risks to reduce the diagnoses of many debilitating diseases like stroke, heart disorders, respiratory disorders, hypertension and other chronic diseases. General public’s health care needs General public’s health care needs. The general public’s health care needs are paid for by various programs such as Medicaid, Medicare, private insurance, and Veterans Administration. The United States funding of health consist of 16 percent of Medicaid, 17 percent Medicare, private insurance 36 percent, and 14 percent out-of-pocket. The use of funding includes program cost 7 percent, prescription drugs 11 percent, nursing home care 7percent, physician service 22 percent, and hospital care 31 percent. Figure 1-1 The Nations’ Health Dollar Sources of funding Other Public | 12% | Other Private | 5 % | Private Insurance | 36% | Medicaid and SCHIP | 16% | Medicare | 17% | Figure 1-2 Use of Funding Other Spending | 23% | Program Administration | 7% | Hospital Care | 31% | Prescription Drugs | 11% | Nursing Home | 7% | Physician and Clinical…