Addressing
Overall Expenditures in the U.S. Health Care Industry

Consider whether, in your view,...

Question

Addressing
Overall Expenditures in the U.S. Health Care Industry

Consider whether, in your view, the
overall costs associated with health care are too high. On what grounds do you
base your conclusion?

Select one of the following submarkets of health
care:
Physician servicesNursing servicesMedical technician servicesPhysical facilities (e.g.,
 hospitals, specialized, imaging, long-term care)Medical technologyPharmaceuticals
Questions
(Please use references to support information)
·
Briefly
summarize your views on whether the total expenditures for health care in the
United States are too high. Provide your rationale, including the criteria you
are using for your assessment.

·
Propose one specific approach to help contain
costs in some way. How would supply and demand be affected? Explain how this
shift could be brought about.

·
Describe the benefits of this approach. How
much do you think this approach would lower market price? Could the outcomes
differ in the short term and long term?

·
Assess potential unintended consequences of
this cost-containment effort.

·
All in all,
do you think this is a feasible approach for reducing overall costs? Why or why
not? Provide the rationale for your response.
References to support

Robert · Accepted Answer

1 | P a g e  
 
Introduction: 
It is a well known fact that the USA is known for its cost on health care spending.  It spends two 
and a half times more than an OECD average expenditure per person. The health care spending 
stood at 17.4% of the GDP in 2009. This was much more than twice the average spent by the 
most developed countries.  
Causes for the high expenditure: 
 1. The cost and price of health is higher in the USA than anywhere else. 
2. The country provides more heath care in the form of doctors, ambulatory services, doctor’s 
appointments, surgeries, diagnostic tests and longer hospital stays. 
3.The health care administration is also very high because  of the high level of complexity that 
arises out of management of information systems and the different levels and types of claims that 
the instance of health care providers across the country. 
4. State interventions, federal policies, private insurance providers, Obaamcare and other health 
care regulation put together is so expensive  that the federal government has ended up incurring 
very high costs.(Chart 2) 
Criteria for assessing costs in health care: 
In the USA costs of health care spending by the federal government is cost per person.  It is 
immaterial whether the person avails the health care program or is under some other plan, the US 
government nevertheless incurs heavy expenditure on proving health care facilities.  It is said 
that despite all this there are still 32 million people in the US without access to healthcare. 
2 | P a g e  
 
The cost that the government incurs to provide welfare in the form of health care to citizens has 
increased by over 110 times to $6.2 trillion in 2010. Higher unemployment rates and lower 
incomes have contributed to this very fast growth in health care spending.

Addressing Overall Expenditures in the U.S. Health Care Industry Consider whether, in your view, the overall costs associated with health care are too high. On what grounds do you base your...

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