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Health Care - Essay Example

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Health care has a huge impact on the economy since increases on health spending are reported every year outpacing the spending on other goods and services thereby resulting to a remarkable slice in the economy. Health costs have gradually increased over the years and affect the…
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Health Care
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Health Care

This places businesses who offer insurance coverage for their workers at a disadvantage as they spend more on health care. This also affects the households paying for their own coverage and has an impact on their spending on other goods and services. This paper gives a summary of the information on health care costs and the impact it has on society and the economy.
The spending on health care has changed over the years and according to reports an average of $6,500 is spent on an individual annually. It is found that sixteen percent of the economy of the gross domestic product (GDP) which represents the total economic activity is devoted to health care. These findings are shocking and the major concern is the rapid increase over the years. Health spending grows faster than all other sectors in the economy for example education, transportation, education, transportation and agriculture that grow at the same rate as the economy. Health spending has been observed to exceed the economic growth over the years and the trends show significant differences between health care and all other sectors in the economy as explained by Shi and Singh (2009).These findings are staggering calling for major reforms in the health care sector since the impact on the economy is very significant.
The country spends more on health care than all other developing countries and according to findings by the Organization for Economic Co-operation and Development. It was found that it spent 13 percent more than next highest spending country and this translates to 90 percent higher than their global competitors. Despite the relatively high spending, it does not maintain substantially better health care as compared to other developed countries. This may be because the wealthy countries can afford to spend more on health care and this is found to be a major correlation between health care and spending. Health studies show that the difference in health spending may be due to investment in ... Read More
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