Hcs 440 Economics: the Financing of Healthcare Essay

1647 Words Mar 11th, 2012 7 Pages
The purpose of this paper is to review and discuss the current level of national healthcare expenditures and to determine if we as Americans are spending too much on healthcare. The author of this paper will provide examples and solutions where we as a nation should add or cut from the healthcare expenditures. This paper will also detail how the general public's healthcare needs are being paid for, the biggest economic healthcare challenge, why the challenge should be addressed, and how this challenge to be financed.

The current level of national healthcare expenditures The National health expenditures is defined as any funds spent on and for healthcare services. Healthcare funding consists of individual, public, and
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The report goes on to detail actions that they feel should be added to generate savings; actions such as mandate stricter data and transaction standards, automated payment accuracies across the board, the elimination of unnecessary paperwork, and “a single credentialing and quality measurement process”(United Health Group, 2009). The report estimates that the government could save a total of $332 billion dollars in national health expenditure over a projected period of 10 years (United Health Group, 2009).

How the general public’s healthcare needs are being paid

The general public’s healthcare needs are paid for by two major sources; private and public insurances. Private insurance is health insurance that is typically offered by employers and purchased by individuals to pay for their healthcare needs. This type of insurance can also pay for services not typically paid for by Medicare and Medicaid such as dental and vision services (Kaiser Health, 2010).

Public insurance is health insurance paid for by the government and is issued to individuals that are age appropriate, disabled, or that meets the income requirements. Medicare and Medicaid are examples of public health insurance. In 2007 individuals insured by private health spend 35 percent of the total health expenditure; while those insurance under public health insurance or

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