Overall Healthcare and Economics

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Recommended: Conclusion on rising cost of health care

Overall Healthcare and Economics: Health care costs have continued to increase in the past few decades despite of the numerous health reform initiatives. Currently, these expenditures account for more than 18 percent of GDP in the United States, a percentage that is expected to continue rising significantly. Actually, it’s projected that the share will rise to 34 percent of GDP by 2040 if health care costs continue to increase at historical rates. The increased health care costs have considerable impacts on households, insurance companies, and government budgets. For instance, households with employer-financed health insurance will have a progressively minimal portion of their total compensation in the form of take-home pay. On the other hand, a progressively larger fraction of compensation will be in the form of employer-provided health insurance. Governments will be forced to cater for more than 50 percent of health care expenditures if they continue to increase at historical rates. Therefore, the current trends in health care economics continue to have significant impacts on households, health insurance companies, governments, and healthcare organization. Current Trends in Health Care Economics: As previously mentioned, one of the major trends in health care economics is the significant increased of health care expenditures or costs to an extent that it accounts for a huge share of the Gross Domestic Product. The dire implications of this trend is demonstrated in the fact that federal, state, and local governments are currently forced to cover nearly 50 percent of current health care spending (“The Economic Case for Health Care Reform”, 2009). The increase in health care costs and its impact on government budgets is ... ... middle of paper ... ...lity, place of service, medical necessity, length of hospital stay, and suitability of decision-making. For payers, utilization review helps in lessening costs and determining the suitability of recommended treatment. For patients, the review helps them to determine whether the health plan offers enough coverage for the specific medical condition. In conclusion, the health care industry has experienced tremendous challenges, opportunities, and changes in the recent past. These have contributed to varying demographic, political, and social trends that have had considerable impacts on patient population and delivery of care services. Notably, the current trends have substantial effects on health care organizations, health coverage, and government budgets. The effect is attributed to the need to enhance the accessibility and affordability of care services to all.

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