The Importance Of Health Spendinging

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The United States continues to spend a large amount of money on health services. Policies needs to be created in order to find a way to reduce health spending. The constant change of medical technology plays a role on the increase of health spending. According to Joseph Newhouse 1992 and 1993 papers, he stated that if technology had been constant other factors could have contributed to the increase of medical care spending. Newhouse’s objective was based on estimating welfare loss, which is based on the cost of society from excessive spending on medical care resulting from insurance. Researchers decided to change the method to estimate the importance of each causal factor as a driver of spending growth. The method is representing the…show more content…
The role of health insurance private and public has expanded. Personal health expenditures have increased as well. The way new technologies have changed is based on the insurance system. Society views that health care affects length and quality of life, which could be impacted based on research and development. In the 1970s, the growth of health expenditures was reflected on the rising of premiums in the private health insurance. Cost based insurance has also been a cause of the rising of health expenditures. There are many ways that could increase health expenditures based on technology. As technology becomes more developed it could affect the insurance system. An example could be if a disease becomes treatable then that patient will have expense for treatment. Life extending technologies could be considered as expenditure increasing. All of these developed technologies have increased the cost of care and demand for insurance but provides people with the ability to increase life expectancy and quality of life. Currently, public policy is health care and education are viewed different based on finance mechanisms. I disagree with this because public policy and education should be viewed as the same in the category of prevention. Public policy and education implementation would benefit the society because there would be regulations to improve someone's life and receive information on it. I don't believe that these two should be viewed differently.
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