Health Care System in United States

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Health Care System in United States

Introduction

Being one of the most developed countries of the world, United States of American still has several issues in terms of healthcare and medicine. Unlike its neighboring country, Canada, United States is quite expensive when it comes to affording medical and healthcare facilities. The drastically decreasing economy and the international rates of dollar have severally impacted the local markets of the country. This fiscal deficit has also impacted upon the healthcare industry of the country.

This paper is principally designed to examine the situation in the healthcare industry of United States. The study is conducted considering several aspects including financial, economical, legal and technological that how every aspect is involved in shaping the healthcare industry in America. This paper will also elucidate the impact of high health care cost on the economy and Gross Domestic Product (GDP) of the country (Mirmirani, S. 2009). It is also discussed that how various healthcare legislations have impacted on a range of factors associated with people's healthcare. Furthermore, the concept and operation of different types of healthcare insurances are also put under consideration, and their impact on the society with respect to various causes.

Impact of Healthcare Cost on Economy

There is no doubt that healthcare is considerably amongst the most important sector in any country, but from economic point of view, there are little aspects which are need to be considered while scrutinizing the impacts of healthcare cost on economy (Mirmirani, S. 2009).

As per the World Health Organization report, United States spent 15.2% of its GDP over healthcare sector, which is considered as the highest amount ever invested from GDP over healthcare. It is expected that United States will continue its dedication towards healthcare, and by 2017, it will spend around 20% of its GDP over healthcare (Mirmirani, S. 2009). Out of this percentage, the most share goes to hospital care, which is 31%, and 21% hoes to clinical services, whereas, rest of the amount is distributed amongst other professional medical services (Healthcare Financial Management. 2010). According to Medicare and Medicaid, United States invested around $2.26 trillion on healthcare services, in 2007, which means that $7,500 per individual. Considering these facts, there is no doubt that the American government is dedicated towards the health of its population (Mirmirani, S. 2009). The research has found that most of the health care funding is utilized in technological advancement, related to healthcare units and services. Against the 17% spending of U.S over healthcare, most other developed countries spend approximately 9% of their GDP (Healthcare Financial Management. 2010).

There is no doubt that the high investment of GDP over healthcare services in some way or the other affects the economy of the country. One of the most famous billionaire, Warner Buffett said that the increase in healthcare spending by companies is advantageous with respect to corporate social responsibility, but is financial a disadvantage for the company in terms of net revenue generation (Mirmirani, ...