Is the growth in health care costs a real concern for the United
States? Why or why not?
Yes growth in healthcare costs are a real concern for the United States. As per analysis, increase in expenses for consumable does not cause concerns that arise with increase in medical expenditures. From 1999 to 2009 the healthcare costs have doubled and has been growing substantially each year and in between the economy was hit by recession but the healthcare costs still increased. Experts state that U S spends a lot in healthcare, so they have to find a way to control such expenses.
The major reasons are
Rising costs in health care, that consumes greater part of total economic output. This is due to limited economic resources, rising health care costs, which means Americans can forgo certain goods and services when there is maximum expenditure in health care.
Limitation in economic resources direct highly valued usages: In free market, consumers conduct purchase behavioral decision based on value perception, knowing expenses incurred on one good mean to forgo other. Health care delivery provides wide insurances that tend to create moral hazard and provider induced demand. These two fuel inefficiencies relate to resource consumption.
The People of U.S. are hit by the following ways by increasing healthcare costs:
Health insurance premium for families increased as the overall healthcare cost increased the premium also increased which hit the earning person's income of the family.
Extra expenses or out of pocket expenses increased which included prescriptions, copays, deductions etc.
Share of taxes to be paid to government health programs increased
Is the growth in health care costs a real concern for the United States? Why or why not?
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