Health Care Cost Analysis
HEALTH CARE COSTS
IMPACT OF THE COST OF HEALTH CARE ON THE U.S ECONOMY Health care in the U.S. is a subject of heated debate in Congress because the federal government is spending trillions to insure Americans and regulating private health insurance companies and the Gross Domestic Product (GDP) is a big factor in this debate. As America becomes richer, Americans are growing poorer due to the rise of health care. According to Kovner and Knickman (2010), the Gross Domestic Product is “the measure of monetary value of all the finished goods and services produced in the country over some fixed area of time usually annually” (p. 68). The health care portion of the GDP has been growing at a rapid pace; the …show more content…
Employer-sponsored group health insurance- This type is the most preferred type of insurance since an employee pays only a portion of the premium while the employer pays the other portion. It provides a better kind of services and coverage and it cannot exclude recipients based on age or a pre-existing condition. The solvency of this type depends on the increase rate over the next thirty years. Since the costs of insurance are increasing yearly, the number of Americans with this type is decreasing. According to Kovner and Knickman (2010), by the end of 2002, more than 64% of Americans were covered by this type. Since then, that number has decreased reaching 61% in 2008 (p.56). If unemployment continues to stay at double figures that 61% will continue to decline as people are not able to afford this type due to not having employment and causing many more to go on …show more content…
According to Williams and Torrens (2009), health insurance has violated these principles because when health insurance started it was bought to protect a person from a catastrophic loss requiring hospital care. Over time, private health insurance has violated these principles because the loss is supposed to be out of the ordinary, but now they cover events that are common and the loss that is insured is not one that is catastrophic or dreaded. Also, losses are supposed to independent events (i.e. person to person, event to event) so insuring against infectious diseases is a violation because it implies a great deal on dependency on insured losses. Lastly, the loss should be of an unimaginable magnitude that there is no way one could budget for it but insurance pays out for vision and dental care
IMPACT OF THE COST OF HEALTH CARE ON THE U.S ECONOMY Health care in the U.S. is a subject of heated debate in Congress because the federal government is spending trillions to insure Americans and regulating private health insurance companies and the Gross Domestic Product (GDP) is a big factor in this debate. As America becomes richer, Americans are growing poorer due to the rise of health care. According to Kovner and Knickman (2010), the Gross Domestic Product is “the measure of monetary value of all the finished goods and services produced in the country over some fixed area of time usually annually” (p. 68). The health care portion of the GDP has been growing at a rapid pace; the …show more content…
Employer-sponsored group health insurance- This type is the most preferred type of insurance since an employee pays only a portion of the premium while the employer pays the other portion. It provides a better kind of services and coverage and it cannot exclude recipients based on age or a pre-existing condition. The solvency of this type depends on the increase rate over the next thirty years. Since the costs of insurance are increasing yearly, the number of Americans with this type is decreasing. According to Kovner and Knickman (2010), by the end of 2002, more than 64% of Americans were covered by this type. Since then, that number has decreased reaching 61% in 2008 (p.56). If unemployment continues to stay at double figures that 61% will continue to decline as people are not able to afford this type due to not having employment and causing many more to go on …show more content…
According to Williams and Torrens (2009), health insurance has violated these principles because when health insurance started it was bought to protect a person from a catastrophic loss requiring hospital care. Over time, private health insurance has violated these principles because the loss is supposed to be out of the ordinary, but now they cover events that are common and the loss that is insured is not one that is catastrophic or dreaded. Also, losses are supposed to independent events (i.e. person to person, event to event) so insuring against infectious diseases is a violation because it implies a great deal on dependency on insured losses. Lastly, the loss should be of an unimaginable magnitude that there is no way one could budget for it but insurance pays out for vision and dental care