Heath Care Spending

HeathCareSpending

HeathCareSpending

Levelof currentlevel of spending

Healthcarespending is currently an issueof concernin theU.S. giventhatthecostof healthhas beengrowingat a higherratecomparedto thenationaleconomy.In 2015,the budgetforhealthcareexpendituregrewby 6.8 % comparedto 2014, reaching2.8 trillion (Peralta, 2014). Thismeansthatthegovernmentwillspendabout$ 9,000 per personin theyear2015. TheU.S. spendsabout 17.9 % of thenationalGDP on health,which is among thehighesthealthcareallocations in theworld(The World Bank Group, 2015). Thetreatmentof chronicdiseasesaccountsforabout56 % of thetotalhealthcareexpenses(Sisko, 2014).Althoughhealthcareis one of theexpensesthat are difficultto avoid,thecurrentU.S. spending is toohighandinappropriate.Thefactthathealthcareexpenditurehas beengrowingfasterthan theGDP makesitworsebecauseitimpliesthatthepeopleof theU.S. will be forcedto forego othernecessitiesof lifeto financethehealthcaresector.

Futureeconomicneedsof thehealthcaresystem

Thefutureneedsof thehealthsystemwill revolvearound thesuitablemechanismsthat can be usedto addresstheescalating costof health.Theindustryprefersthatcould escalatesince theincreasein pricesgivesplayersan opportunityto makemoreprofits.However,therateof increasein thecostis untenable.Someof thefactorsthat thestakeholders might needto lookinto includetheimplicationsof thepopulationageing on thecostof healthandthecostof infections(suchas hepatitis B) that affectapproximately3.2 million (Peralta, 2014).Inaddition,thecurrentsystemseemsto rewardhealthcareproviders forquantity,which impliesthatthefuturesystemmight considerfocusingon qualityof carewhilecontainingthecostat thesametime.In conclusion,thecostof careis among themostchallenging issuesthat thehealthcaresystemhas to addresssince itis increasingat a higherratethan theGDP.

References

Peralta,K. (2014, June 24). Study: Health care spending to increase in 2015after 5-year slump. U.S.News and World Report LP.Retrieved April 11, 2015, fromhttp://www.usnews.com/news/articles/2014/06/24/study-health-care-spending-to-increase-in-2015-after-5-year-slump

Sisko,M. (2014). Nationalhealth expenditure projections, 2013-23: Faster growth expected withexpanded coverage and improving economy.Woodlawn: Center for Medicare and Medicaid Services.

TheWorld Bank Group (2015). Health expenditure, total (% of GDP). TheWorld Bank Group.Retrieved April 11, 2015, fromhttp://data.worldbank.org/indicator/SH.XPD.TOTL.ZS