Comparison Paper
Running Header: Terms Comparison Paper.
Comparison Paper
University of Phoenix
HCS/552 Health Care Economics
Barbara Smardz
April 6, 2009
According to Robert Carroll, (2007) health care costs continue to rise in the United States. The growth of health care costs has been exceeding the GDP growth by two percentage points annually since 1940. These rising costs impose a substantial burden on the U.S. economy. Higher spending on public programs like Medicaid and Medicare strains state and federal budgets. Higher insurance premiums pose a challenge for employees and burden workers with higher health costs and lower wage increases.
“The burden of rising health care costs is particularly problematic for small businesses, which tend to have much smaller pools of workers to spread risk and increasingly choose not to offer any health insurance to employees.” (Carroll, R. 2007).
This paper will compare three terms risk, resources and cost, to economics and health care.
Risk:
Risk management is the discipline of identifying, monitoring and limiting risks. In some cases the acceptable risk may be near zero. Risks can come from accidents, natural causes and disasters as well as deliberate attacks from an adversary. (Wikipedia.org, retrieved 4/6/09)
In business, risk management entails organized activity to manage uncertainty and threats and involves people following procedures and using tools in order to ensure conformance with risk management policies. (Wikipedia.org, retrieved 4/6/09)
In ideal risk management, a prioritization process is followed whereby the risks with the greatest loss and the greatest probability of occurring are handled first, and risks with lower probability of occurrence and lower loss are handled in descending order. Intangible risk management identifies a new type of a risk that has a 100% probability of occurring but is ignored by the organization due to a lack of identification ability. These risks directly
Comparison Paper
University of Phoenix
HCS/552 Health Care Economics
Barbara Smardz
April 6, 2009
According to Robert Carroll, (2007) health care costs continue to rise in the United States. The growth of health care costs has been exceeding the GDP growth by two percentage points annually since 1940. These rising costs impose a substantial burden on the U.S. economy. Higher spending on public programs like Medicaid and Medicare strains state and federal budgets. Higher insurance premiums pose a challenge for employees and burden workers with higher health costs and lower wage increases.
“The burden of rising health care costs is particularly problematic for small businesses, which tend to have much smaller pools of workers to spread risk and increasingly choose not to offer any health insurance to employees.” (Carroll, R. 2007).
This paper will compare three terms risk, resources and cost, to economics and health care.
Risk:
Risk management is the discipline of identifying, monitoring and limiting risks. In some cases the acceptable risk may be near zero. Risks can come from accidents, natural causes and disasters as well as deliberate attacks from an adversary. (Wikipedia.org, retrieved 4/6/09)
In business, risk management entails organized activity to manage uncertainty and threats and involves people following procedures and using tools in order to ensure conformance with risk management policies. (Wikipedia.org, retrieved 4/6/09)
In ideal risk management, a prioritization process is followed whereby the risks with the greatest loss and the greatest probability of occurring are handled first, and risks with lower probability of occurrence and lower loss are handled in descending order. Intangible risk management identifies a new type of a risk that has a 100% probability of occurring but is ignored by the organization due to a lack of identification ability. These risks directly