Hcs 440 Economics: the Financing of Healthcare

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The purpose of this paper is to review and discuss the current level of national healthcare expenditures and to determine if we as Americans are spending too much on healthcare. The author of this paper will provide examples and solutions where we as a nation should add or cut from the healthcare expenditures. This paper will also detail how the general public's healthcare needs are being paid for, the biggest economic healthcare challenge, why the challenge should be addressed, and how this challenge to be financed. The current level of national healthcare expenditures The National health expenditures is defined as any funds spent on and for healthcare services. Healthcare funding consists of individual, public, and…show more content…
The biggest economic challenge for the health care system in the upcoming decades The main economic challenge for the healthcare system in the United State will be the rising expenses associated with Medicare and Medicaid. The Governments share of healthcare spending is predicted to rise to 31 percent by the year 2020 (Keehan, Sisko, Truffer, Poisal, Cuckler, Madison, Lizonitz, and Smith, 2011). This may jeopardize the economic stability and financial security of the nation. Why this “challenge” has to be addressed The problem of rising healthcare costs is to be addressed because of its nation-wide significance. Predictions given by economic analyst suggest that funding for Medicare will run out of money and will not be operate-able by the year 2024 if government remains the major payer for healthcare and the costs of Medicare continue to rise. Government will not be able to continue financing the healthcare system on its own (Gersh, 2011). How will this challenge be financed? Continued increases in healthcare spending can negatively impact all sectors of the economy (Sood, Ghosh, and Escarse 2007). Budgets are currently limited, so an increase in healthcare funding could mean a reduction in funding to other areas such as education, and businesses, or may cause the government to increase restrictions or raise taxes (Sood, Ghosh,

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