Solution
Komalavalli answered on
Mar 29 2022
1. The United States spends twice as much on health care as any other developed country. In 2016, health spending contributed for 18 percent of the country's GDP, or around $3.3 trillion, with corporations and consumers accounting for almost half of that spending. Medicare and Medicaid already account for more than a quarter of all federal spending, and these percentages are expected to climb as the baby boomer generation matures. In the case of Medicare, the first phase is a transition period during which the government simply alters payments based on its own criteria. Suppliers are rewarded in certain cases, but sabotaged in others for failing to meet specified value requirements.
Companies that continue to provide health insurance will focus on total compensation and, in order to retain the same total amount, may lower salaries (or increase wages) in order to pay increased benefit expenses (salary and benefits). Empirical research suggests that increases in health-care expenses are compensated by direct pay cutbacks, higher employee cost-sharing, or, in the event of fixed wages (i.e., a union contract), by an increase in working hours. Increased health spending may also benefit households by improving health status, increasing access to treatment, increasing pay and employment in the health care business, and increasing local economic activity. Improved health condition may benefit households economically by boosting production, lowering absenteeism, and enhancing independence.
Rising health care costs affect household finances.
Income and savings must be utilised to pay for health care services if they are not used to purchase consumer items or set away for savings to cover future schooling costs or in retirement. For less affluent homes, this might mean having to choose between health care and other basic requirements. According to a 2003 poll, 63 percent of families that claimed trouble paying medical expenses also reported difficulty paying for other household necessities such as food, clothes, and rent. Rising healthcare costs may disproportionately affect low-income households, who may not be able to use government or private-sector charitable initiatives. According to a recent poll, the proportion of low-income insured people with chronic diseases who spend more than 5% of their income on health care has risen from 28% to 44%. Almost half of uninsured low-income chronically ill people report financial difficulties, which can lead to treatment postponement or abandonment.
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