Microeconomics Versus Macroeconomics Bus610

Economists also look at the microeconomic market within the United States and how the market affects the overall funding of health care. Economists also use macroeconomics to how the changes in the economy as a whole affect the price and funding of health care and how the trends of the economy

This paper will look at the impact of Affordable Care Act on supply and demand in healthcare. The goal is to show if there is equilibrium of supply and demand since the Affordable Care Act was enacted. This has been done by looking at a variety of articles such as The Impact of the Affordable Care Act on the Health Care Workforce. The Affordable Care Act has created provisions to address some of the supply shortages. Through the provision it will take time for the full effects to come to light. This paper will provide valuable information regarding the Affordable Care Act impact on supply and demand.

One of the issues is the increasing cost of healthcare which is dominating the health policy in U.S. this is accompanied by an increase in spending on healthcare. According to projections by the government, the spending on medical care will continue to rise. U.S spends more money on health care than any other nation globally (Holtz, 2013). The increase in the spending is as a result of improved tools for disease diagnosis, better surgical interventions among others. This raises an issue for the policy makers on the maximum GDP percentage that a country has to spend on healthcare, and whether the nation will afford the cost that is continually growing. In contemplating any change in the health policy, policy makers should consider the cost of the healthcare and the ability of the nation to support that high cost.

Impact to Healthcare organizations - These increases in cost raise questions of health care expenses at the hospital level. As higher profits are sought, the cost will become unstable for all, thus causing many to postpone going to the doctor. However, there are many complicated problems associated with our healthcare system. We will focus on main issues that can correct many related problems within the current structure. More importantly, we need to find ways to ensure all Americans have access to health care; and we need to hone in on how we can get the best value for the $2 trillion dollars we spend annually on healthcare.

This paper will include: the current health care expenditures whether spending is too much or not enough, where the nation should add or cut, how the public’s health care needs are paid and provide a forecast for: the future economic needs, why these needs must be addressed, how I envision these needs will be financed and conclusion.

“The amount people pay for health insurance increased 30 percent from 2001 to 2005, while income for the same period of time only increased 3 percent.” (Source: Robert Wood Johnson Foundation). The rising cost of healthcare is a huge problem in America today. In this paper I will analyze the different issues and causes for the increase in cost.

In recent years, health care has been a huge topic in public debates, legislations, and even in deciding who will become the next president. There have been many acts, legislations, and debates on what the country has to do in regards to health care. According to University of Phoenix Read Me First HCS/235 (n.d.), “How health care is financed influences access to health care, how health care is delivered, the quality of health care provided, and its cost”.

The main cause for the healthcare reform bill is the rising cost of health insurance for the American citizens. From the 1960s to the 1980s healthcare spending went from $28 billion to $255 billion. By the beginning of 2000, healthcare spending increased to $1.4 trillion. The United States economy has slowly declined due to several factors, the cost of health care is one. Presidents, state representatives, hospital and insurance executives, and economists have tried to attack this huge deficit. There are several things that can be done in order to reduce rapidly increasing health care spending. Some actions that could benefit the United States economy is the stop of wasteful

Although, it is important to note that the increase in healthcare spending directly influences the economy of the United States and its economic development. As healthcare prices increase, employers, those who carry a significant portion of the burden, attempt to pass healthcare spending to their employees. As a result, employees are less attracted to join such companies, which in turn results in decreased productivity. The result of this chain is obvious: a slowdown of overall nation’s economic growth.

I personally feel the affect economics have on healthcare or the lack there of, can never be explained any clearer; unless you are experiencing it yourself.

The cost of care has been a growing problem throughout developed nations during the last 15 years. For example, across 34 nations that make up the Organization for Economic Cooperation and Development (OECD), the average per capita health care expenditure increased by more than 70 percent between 2000 and 2010. However, the biggest spenders — such as

“The biggest problem with health care is not with insurance or politics. It is that we are measuring the wrong things the wrong way” (Kaplan & Porter, 2011, p. 46). Total healthcare expenditures and expenditures as a percentage of GDP have been considerably higher in the U.S. Hospital care, physician and clinical services, and drug prescription expenditures have been the principal components contributing to growth in healthcare expenditures in the U.S. compared to other countries. The study also analyses and compares the growth of healthcare costs. Three different perspectives on the health care “cost crisis” are understanding the value of health care, most health care costs are fixed and healthcare cost covered by health insurance program. In this paper share ideas to help solve the cost crisis in healthcare.

Healthcare spending in the United States is higher than that found in many comparable high income countries, while health outcomes within the U.S. have not kept up with these expenses. In 2008, as the national and global economy plummeted and the United States’ GDP subsequently declined, spending in healthcare still continued to grow and reached $2.5 trillion in 2009 (Shi 2014). Between 2010 and 2019, it is predicted that healthcare spending will grow at a rate of 6.1% annually, accounting for $4.5 trillion in 2019 and 19.3% of the GDP (Shi 2014). As our spending continues to go unchecked, a larger proportion of our GDP is displaced and there is less money to put towards other areas of investment. With the passage of the Affordable Care Act

2. Microeconomics – the branch of economics, which deals with the individual decisions of units of the economy – firms and households, and how their choice determine relative prices of goods and factors or production.

The microeconomics environment is the study of individuals and firms or organisations, which are directly linked to business. The study of microeconomics focus on subsisting and prospective stakeholders of company.