The Economics of Health Care

Abstract

Quality health care is the right of every human being on this planet, yet the attainment of this right does not exist. This may be because of either lack of knowledge of one's basic rights or the government machinery does not facilitate the population at large, in this regard. This paper aims highlight if the case of right to free health care for all in America as well as presenting an insight about the structure of the American health care insurance system and the types of the health care insurance providers in the economy. Followed by a discussion about the flaws existing in the health care system, which is then further elaborated in the discussion about the costs and expenditures on health care by both the government and the average American. Lastly, certain recommendations related to problems identified, are presented to resonate adequate alternations required for the American health care system to function properly.

Table of Contents

Introduction1

Discussion1

General Overview of American Health Care System1

Private Sector Health Insurance2

1.Employer-sponsored Insurance or Group Market2

2.Private Insurance or Individual Market2

Public Health Insurance2

1.Medicaid2

2.Medicare3

3.Other Public Health Insurance Programs3

Right to free Health Care4

Flaws in the Health Care System5

Costs of Health Care6

Spending on Health Care6

Rising costs of Health Care9

Future Costs & Expenditure on Health Care11

Improving Health Care Services11

Conclusion12

References15

The Economics of Health Care

Introduction

Merriam Webster dictionary describes health care as the restoring of and up keeping of good health through effective handling of an ailment by fleet of properly trained medical personnel. An imminent sign to gauge the status of a progressive nation is to see the standard of services facilitated to its citizens for their ease and well-being. Usually, it is associated with developed nations to provide its citizens with best possible life utilities for their welfare. Some of these utilities include public transportation, welfare services and health care. United States is one such country that provides its citizens with free or highly subsidized public services. However, since many years a vast debate about America's health care services and policies is taking place at both political and social front.

Discussion

General Overview of American Health Care System

Before progressing further, an overview of the American health care system is essential for better understanding of the following analysis. Beginning with, both public and private sectors have their stake in the health care system of the country, with the private insurer providers having more supremacy in this sector. Chua (2006) has identified the following sub-categories of types of private and public health insurances available to the public:

Private Sector Health Insurance

Employer-sponsored Insurance or Group Market

Being one of the most common, this type of insurance entails that an employee's insurance is the responsibility of the employer. Depending upon the size of the company, the employer can be responsible for either part or full health insurance coverage of the employee. In case of either of these, employee's contribution to the insurance sum prevails, though the employer contributes the majority of the sum. This forms of insurances usually, but not mostly, provides coverage for the employee's ...