Health Care Spending

Topics: Health insurance, Health care, Health economics Pages: 5 (1881 words) Published: July 28, 2013
National Health Care Spending Paper
HCS/440

National Health Care Spending Paper
National health care spending is a major finance concern throughout the United States and many other countries. The government has set aside funds in the budget to help cover some of the health care expenses currently occurring. Because health care expenditures have increased from $256 billion from 1980 to $2.6 trillion in 2010 it has caused a burden to the world. This paper will provide the reader information of the level of current national health care expenditures, whether the spending is too much or not enough, whether or not the nation should cut or add, and how the public’s health care needs are financed. This paper will also focus on the future economic needs of the health care system and why these economic needs must be met. Level of Current National Health Care Expenditures

The United States government is working on strategies on how to slow down the rate of national health care expenditures. In 1980 the United States health care spending was nearly at $256 billion, but in 2010 the health care expenditures was $2.6 trillion that was ten times more than in 1980s (Kaiser EDU, n.d). According to Werber Serafini (2010), “The calculation includes spending for health care goods and services, program administration, private health insurance, public health, and the amount spent on structures, equipment and noncommercial research.” The federal government decided to pay a bigger share of Medicaid cost that caused the Federal health care spending to increase. In 2008 the Medicaid spending grew faster than in 2007 (Werber Serafini, 2010). The share of the Federal government for the national health care spending, increased by one percentage point to 35%. With that in mind most of the gross domestic product (GDP) went to health care spending. By 2008, 16.2 percent of the gross domestic product was used on health care. According to CMS the GDP normally grows at a slower rate than the total health spending after and during a recession and why the GDP findings were anticipated. The positive aspect is that the hospital spending growth has been the slowest since 1998, and Medicaid spending was also down. According to Werber Serafini (2010), “The growth of spending for physicians’ services, nursing home services, and retail prescription drugs was also down, and private health insurance premiums and benefits grew at their slowest rate since 1967, according to CMS.” Spending Amount: Too Much or Not Enough?

The United States is known to spend more funds per capita on health care services than in any other countries. Furthermore, the United States is known to have one of the highest spending growth rates compare to other countries. The United States is known to use more care and pay higher prices than other countries (Simon, 2009). In 2008 the United States health expenditures was 16 % of the GDP that was five percentage points higher than any other countries. The total amount of expenses will continue to rise as long as the population increases. According to Schieber (2009), “Many studies have drawn attention to the fact that the United States spends roughly twice as much on health care- as a fraction of GDP and on a per person basis- than the average of other economically developed nations without achieving substantially better health outcomes.” In order for the reform to work the United States government need to find methods to help save in the existing programs to help compensate new programs (Simon, 2009). The Nation: Add or Cut

The United States government generates a financial plan to help with health care expenses. These health care expenditures have to be monitored closely to ensure that the funds are not mishandled. It is important for the government to keep track how the disbursement of funds are widen between the different parts of health care. Health care should be reduced so that individuals who has insurance or does not have...

References: Alliance for Retired Americans. (2010). Healthcare Reform. Retrieved from http://www.retiredamericans.org/issues/health-care-reform
Gengler, A. (201). The Future Of Your Health Care. Retrieved from http://money.cnn.com/2011/04/20/pf/future_of_healthcare.moneymag/index.htm
Harvard, J. (2013). Lower health care costs may last. Retrieved from http://news.harvard.edu/gazette/story/2013/05/study-points-to-big-drop-in-health-care-spending/
Kaiser EDU. (n.d). U.S. Health Care Costs. Retrieved from http://www.kaiseredu.org/Issue-Modules/US-Health-Care-Costs/Background-Brief.aspx#
National Center For Policy Analysis. (2012). Consumer-Direct Health Care. Retrieved from http://www.ncpa.org/about-cdhc/
Schieber, S. J. (2009). The Unsustainable cost of Health Care. Retrieved from http://www.ssab.gov/documents/Prepub_TheUnsustainableCostofHealthCare.pdf
Simon, C. J. (2009). Can We Reduce Health Care Spending?. Retrieved from http://www.lewin.com/~/media/lewin/site_sections/publications/lewinreport-costdrivers.pdf
Werber Serafini, M. (2010). U.S. Health Spending Slows. Retrieved from http://healthcare.nationaljournal.com/2010/01/us-health-spending-slows.php
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