How Does Medicare Affect The Economy

1. Health economist’s analysts are concerned with issues identified with effectiveness, productivity, and value in production and consumption of health. A big number with Medicare insurance in the United States has dropped since the beginning of the millennium. Research reveals that about 55% of American population depends on their employers for insurance while 10% are dependent on self. Due to this worrying trend, the US government has created many reforms in efforts to support production of Medicare. In 1997, for instance, the national government set up the State Children’s Health Insurance Program (SCHIP), to give protection to families and children living below 200% poverty line. This was followed by Patient Protection and Affordable Care …show more content…
The very first one is the cost incurred. Ever thought of United States’ level of medication? Well, many people do not know the said country is far behind other developed countries in acquisition of Medicare. Compared to other countries, US healthcare is costly unlike countries like United Kingdom where government use funds the highest percentage of the cost and also negotiates with drug companies and physicians (Santerre et al, 2010).
2. The production possibility frontier (PPF) is a fundamental device in economy which is the most proficient underway of merchandise and administrations, in this manner allocating the resources are the best strategy. If the economy fails to apply the use of PPF, the economy is managed inefficiently leading to the production of the society to dwindle.
Opportunity cost, this is the unique value foregone in place of something else. This is very important to the country because it will make decisions on the products to allocate its resources first. Comparing the importance of buying a television set and going for food will definitely result to food. In this instance, food is more important than a television set. That now the opportunity