Health Care Spending

Health Care Spending Paper Rosie L. Eckford HCS/440 – ECONOMICS: THE FINANCING OF HEALTH CARE July 2, 2012 Instructor: Lori Geddes Healthcare is a very important sector in the countries around the world. The countries and the government always keep some money in their budget in relation to the health care activities in their countries. In the United States of America also, there are certain provisions in relation to the health care. The paper shall discuss about the health care spending in relation to United States of America.
It shall discuss about the current level of health care expenditure in United States of America. There are shall be a lot of discussion in relation to the fact that whether the expenditure on health care in United States of America is appropriate or not. It shall also discuss about the manner in which the health care needs of the people in United States of America are paid by the government. In the end of the paper, there shall be a forecast in relation to the health care spending in United States of America.
All the above said things shall be discussed in detail in the current paper. The government of United States of America has made a lot of provisions in relation to the expenditure of health care facilities in United States of America. In the United States of America, the health care spending has been increasing continuously (Hawe, 2008). There have been a lot of funds kept by the government of United States of America in its budget in relation to the health care services.

In the year 1990, the expenditure made by the government of United States of America in relation to the health care spending was $714 million. Since then, the amount of expenditure on health care has increase to $2. 3 trillion. This is around 3 times of what it was in the year 1990. The government of United States of America is spending around 16% of its total gross domestic production on providing the health care facilities to the people. It is estimated that around $7600 are spent by the government of
United States of America for each and every resident in the country. In this way, it can be said that the expenditure in relation to health care in United States of America is quite good and the country is taking adequate steps for making sure that adequate health care facilities are provided to the people in a proper and appropriate manner. The health care spending of the United States of America is the highest all around the world. There is no problem with the extent of money spend by the country towards the health care.
Other countries around the world are also spending some money towards the health care but the expenditure made by the government of United States of America is the highest. Currently the expenditure incurred in United States of America towards is adequate and appropriate. It has to increase only with the increase in population. According to the per capita expenditure, the current expenditure in the country towards the healthcare is appropriate. When the country makes the budget in relation to the health care expenditure, then it has to take care that adequate expenditure is incurred on each and every activity related to health care.
The government of United States of America should make sure that it spends appropriate expenditure on each and every area of the health care. The expenditure should be more on the critical areas and it should be reduced on the areas which are not very difficult to handle for the government. The government of United States of America should make sure that it increases the expenditure of the health insurance of those people which are not in a position to afford the costs for themselves (U. S. Health Care Costs, n. d. ).
The government should also increase the expenditure in relation to the funds provided to the health care organizations for providing the benefits to the poor people in the United States of America. The government of United States of America should also increase the expenditure in relation to some specific and high risk diseases such as Cancer, Aids etc. If the expenditure shall be reduced in relation to the above said activities then, there is a possibility that the people in United States of America shall be benefitted to a very high extent.
Other than the above areas, there are certain areas in which the government of United States of America should look to reduce the expenditure. The cost on some of the areas in the health care should not be reduced to the extent it hampers the health care services. If there is a requirement to reduce the health care costs then, these should be reduced only till the services are not affected in a negative manner. The areas in which unnecessary costs are incurred by the government should be recognized and the costs should be reduced in those areas.
In the United States of America, there are adequate sources used for the purpose of financing the health care services in the country. In the country, the funding for the health care services is done together by the government and the non government agencies in the country. While preparing the budget, the government of United States of America keeps a percentage of funds in relation to providing the health care services to the people who are in need and also the people which are not able to have the health care insurance for themselves.
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Other than the government of United States of America, there are various other forms of associations which work for the purpose of providing the health care services to the people. They not only provide the health care services but also provide the financial for the insurance of the patients. There are few programs also in relation to the same. The programs include Healthcare Facilities Accreditation Program, Community Health Accreditation Program and various other programs. The health care finance in the United States of America are funded by the above said facilities and things.
In the United States of America, the government and the non government associations share 50% of the expenditure each. In this way, there is a proper sharing the expenditure. For the last few years, the healthcare expenditure in United States of America has been increased considerably at an increasing rate. It is expected that the healthcare expenditure in United States of America shall increase in the same rate as it was increasing earlier (Scambler, 2008). In the year 2007, the health care expenditure in United States of America was $2. 2 trillion.
This amount increased to $2. 3 trillion in the financial year 2008. In this way, there was a definite increase in the health care expenditure in the two years. It is expected that the health care expenditure will grow even more. In the year 2013, the healthcare expenditure is expected to reach the figure of $3 trillion and in the year 2017, it is expected that the health care expenditure shall reach the figure of $4. 3 trillion. In this way, it can be said that there is a forecast of increased expenditure on health care in the years to come.
The chart below provides the forecast for health care in a proper manner. This chart is showing the healthcare expenditure in United States of America. The government of United States of America is spending a lot of money on the healthcare services in the country. With the kind of expenditure, the government of United States of America is spending on the health care facilities in the country, it can be said that the government is spending sufficient amount of money on the health care facilities.
For the last many years, there has been an increase in the health care spending in United States of America. With this, it can be projected that the expenditure on health care shall increase to the extent of $4. 3 trillion by 2017. References Scambler, G. (2008). Sociology as Applied to Medicine. (6th ed. ), Elsevier Health Sciences. Hawe, E. (2008). Compendium of Health Statistics. (19th ed. ), Radcliffe Publishing. U. S. Health Care Costs. (n. d. ). Retrieved April 18, 2011 from http://www. kaiseredu. org/Issue-Modules/US-Health-Care-Costs/Background-Brief. aspx