Healthcare Reform in the United States

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Health Care Spending in the United States
HCS/440
StJohn Sturton
University of phoenix, Augusta Campus
January 10, 2012

Over the years the cost of health care in the United States has surpass the overall growth of the economy. Even though now days with the economy supposing to be in recession, more and more Americans are trying to make good on health care spending than using it toward other diversions that they could have spent it on. Why? First, healthcare expenditure is on a different level than it was years ago. Second, the economy may or may not be paying enough and finally the economic needs of healthcare needs may or may not be met, which I will explain in this paper. What is the current level of the health care expenditures? Over the years, while the nation’s spending on all goods and service has increase of 7.4%, the amount spent on healthcare has risen at a rate of 9.8%. As a result, Americans just cannot afford health care and still maintain other diversions of one’s lifestyle. Meanwhile, other efforts to continue overall costs have the effect of making care in acceptable on a regular basis for all of us – even for those who can afford it. Also, if federal government spending remains at a steady pace of GDP, the increasing cost of Medicare’s budget will smother out all other spending. The third case scenario is that the exhausting cost of healthcare for employees, students, retirees, and their families is pushing some of America’s most economically fortune 500 companies to become uncompetitive in today’s fair market and trade.
What do you think is the average spent on health care and are we spending enough or too much? The national average spent in 2006 in the United States was over $2 trillion, which is just under 16% of the gross domestic product that was $13.2 trillion. What is gross domestic product (GDP)? Gross domestic product is the total market value of everything produced for sale in the United



References: http://www.cms.hhs.gov/NationalHealthExpendData/ Lessig, L. (2001).The Future of Ideas: New York: Random House Oureconomicfuture.org/issues/healthcare

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