National health care spending is a major finance concern throughout the United States and many other countries. The government has set aside funds in the budget to help cover some of the health care expenses currently occurring. Because health care expenditures have increased from $256 billion from 1980 to $2. 6 trillion in 2010 it has caused a burden to the world. This paper will provide the reader information of the level of current national health care expenditures, whether the spending is too much or not enough, whether or not the nation should cut or add, and how the public’s health care needs are financed.
This paper will also focus on the future economic needs of the health care system and why these economic needs must be met. Level of Current National Health Care Expenditures The United States government is working on strategies on how to slow down the rate of national health care expenditures. In 1980 the United States health care spending was nearly at $256 billion, but in 2010 the health care expenditures was $2. 6 trillion that was ten times more than in 1980s (Kaiser EDU, n. d).
According to Werber Serafini (2010), “The calculation includes spending for health care goods and services, program administration, private health insurance, public health, and the amount spent on structures, equipment and noncommercial research. ” The federal government decided to pay a bigger share of Medicaid cost that caused the Federal health care spending to increase. In 2008 the Medicaid spending grew faster than in 2007 (Werber Serafini, 2010). The share of the Federal government for the national health care spending, increased by one percentage point to 35%.
With that in mind most of the gross domestic product (GDP) went to health care spending. By 2008, 16. 2 percent of the gross domestic product was used on health care. According to CMS the GDP normally grows at a slower rate than the total health spending after and during a recession and why the GDP findings were anticipated. The positive aspect is that the hospital spending growth has been the slowest since 1998, and Medicaid spending was also down.
According to Werber Serafini (2010), “The growth of spending for physicians’ services, ursing home services, and retail prescription drugs was also down, and private health insurance premiums and benefits grew at their slowest rate since 1967, according to CMS. ” Spending Amount: Too Much or Not Enough? The United States is known to spend more funds per capita on health care services than in any other countries. Furthermore, the United States is known to have one of the highest spending growth rates compare to other countries. The United States is known to use more care and pay higher prices than other countries (Simon, 2009).
In 2008 the United States health expenditures was 16 % of the GDP that was five percentage points higher than any other countries. The total amount of expenses will continue to rise as long as the population increases. According to Schieber (2009), “Many studies have drawn attention to the fact that the United States spends roughly twice as much on health care- as a fraction of GDP and on a per person basis- than the average of other economically developed nations without achieving substantially better health outcomes.
In order for the reform to work the United States government need to find methods to help save in the existing programs to help compensate new programs (Simon, 2009). The Nation: Add or Cut The United States government generates a financial plan to help with health care expenses. These health care expenditures have to be monitored closely to ensure that the funds are not mishandled. It is important for the government to keep track how the disbursement of funds are widen between the different parts of health care.
Health care should be reduced so that individuals who has insurance or does not have insurance can afford to purchase or pay for medical insurance at a lower cost. If the cost of health care is reduced or cut, the amount of uninsured individuals will decrease (Harvard, 2013). Furthermore, by reducing health care cost it will decrease the mortality rate because more individuals will afford to go to routine check-ups and minimize the use of the emergency room.
According to Harvard (2013), “A slowdown in the growth of U. S. ealth care costs could mean savings of as much as $770 billion on Medicare spending over the next decade, Harvard economist say. ” If health care cost is reduced it can alleviate any financial burden on emergent government programs (Harvard, 2013). Finances of Public Health care needs The health care needs of the public are financed in many ways, and it is also based on how much the consumer can afford to pay. Health care is so expensive that most consumers cannot afford to pay for it all.
According to The Merck Manual (2010-2013), “Total health care costs annually in the United States were about $1. trillion in 2004 and the cost of providing high-quality (not even the best quality) health care to everyone in the United States would be very much higher. ” The cost of health care is normally allocated by the individual receiving the service, the employers, and the health insurance providers such as private or manages care, and the government (The Merck Manual, 2010-2013). Most individuals who are employed full-time by an organization are provided with the option to purchase medical insurance coverage for themselves and the family.
The employee pays for a portion of the health coverage through payroll deduction and the organization covers the rest. Other consumers chose to purchase health insurance privately, but it may be very costly and sometimes it might not cover individuals with any pre-existing disorders. According to The Merck Manual (2010-2013), “If people are eligible for government aid because they have limited financial means, are disabled, or are older than 65, health care costs may be covered by plans such as Medicare and Medicaid.
It does not matter what health care coverage option the individual decides to chose, he or she will still have to pay some out-of-pocket expenses such as deductible, co-pays, and cost that exceeds those covered by a plan (The Merck Manual, 2010-2013). Future Economic Needs of the Health Care The future economic need of the health care system depends on how the United States government will determine to make health care more affordable to consumers.
The life expectancy of individuals whether in high or low-income countries are increasing. That is why it is important to find solutions on how to improve the economic needs of health care. According to Gengler (2011), “If trends continue, health spending will be a quarter of the economy in 2035. ” That is why most employers, insures, and Medicare system is trying to find ways to save without jeopardizing what present medicine can provide. In the future the economic needs of health care system eed to be prepared of the changes are coming.
Some of the major changes that consumers will see is fewer physicians, the consumer will know more about doctors performance, doctors will be rewarded for keeping cost down, employers will cut retirees loose, and Medicare advantage will shrink. All of these are future changes being perceived for health care (Gengler, 2011). Why these needs must be addressed It is important for the United States to address the needs of health care for all of the population.
It is known that the elderly population will continue to grow and the demand in health care will continue to rise. Individuals around the world cannot afford to have health care coverage and by lowering the cost of health care will allow uninsured individuals to purchase affordable health care cost. According to Alliance for Retired Americans (2010), “Under the law, health insurance companies will no longer be allowed to deny care to older Americans with pre-existing health conditions.
This will allow millions of dollars to be saved that can be used to help improve the quality of care given to the consumers. Making these changes it will ensure that the consumers have the opportunity to take care of him or her by affording health insurance. This will minimize over crowdedness in the ER and less re-admission rates. How you envision these needs will be financed The United States health care system should be financed through a consumer driven health care.
Allowing patients manage and keep track of his or her health care money with consumer direct health plans allows the consumer to be more diligent about his or her health care needs. A consumer driven health care allows the consumers to compare prices, select his or her own provider, and it allows them to select the best medical services that meet his or her needs. According to National Center For Policy Analysis (2012), “Consumer-direct health plans include Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and Flexible Spending Accounts (FSAs).
I think this method will allow the consumer to choose what plan fits best for his or her medical needs while at the same time taking into consideration the finances (National Center For Policy Analysis, 2012). Conclusion It is known that health care expenditures are a major finance concern in the United States and for many other countries. Because the United States is one of the leading countries is spending health care money, the government needs to make necessary cutbacks to help reduce health care cost.
Even though the government set aside funding to cover most of the health care expenses the expenditures is just too high to cover it all. That is why it is important to focus on the current level of the national health care expenditures, whether or not the spending is too much or not enough, and whether or not the United States should cut or add funding to help reduce and managed cost. Furthermore, the consumers need to gain knowledge on better decision making when dealing with his or her health and cost-effective decision. This will ensure to minimize the rise of health care cost.