Health Care Spending Essay

In the past seven decades health care spending has been increasing tremendously. The industrial era brought in a new system to help population duel with the cost of medical care. New technology has become a much needed investing in the 21st century which has yield to a great margin between small and big facilities. When looking at all of these factors there is no wonder the nation is spend way too much money on health care, although at times might seem that there is not enough. It seems that the right investment is needed to help aid those that need help the most the elderly and unemployed, with the economy in a fragile state and unemployment rates increasing with the quarters there is no question that decisions about how we are spending on health care needs to change. Even though so many factors are involved in the spending this paper would focus on our current level of expenditures, how and where is the money spent, forecasting what would be coming next. Current level of national healthcare expenditures According to â€Å"Physicians for a National Health Program† (2012), â€Å"National Health Expenditures was $2.8 trillion, and the spending as a percent of GDP was 18% for 2012† (National Health Expenditure Projections: Modest Annual Growth until Coverage Expands and Economic Growth Accelerates). When looking at these facts many would even argue we are spending quite enough when it comes to healthcare or perhaps too much, however is the complete opposite not enough spending is in the right place. These figures does not represent the spent on one area of health care the graph below will provide an idea as to what, when, and where was spent on 2009. Total = $2.3 Trillion Source: Martin A.B. et al., â€Å"Growth In US Health Spending Remained Slow in 2010; Health Share of Gross Domestic Product Was Unchanged from 2009,† Health Affairs, 2012. As shown on the graph 51% of the spending is towards hospital care and physician/clinical services which are great to be invested in, however the rest of the spending in my opinion is not proportionally distribute, yes those areas are extremely important but it would be beneficial if more can be distributed along medication, and other professionals services to include the testing and diagnose of serious illnesses such as cancer. The investment is require to subsidize the needs on these areas, 45 percent of people under age 65 who don’t have insurance coverage for prescriptions said they had not filled a prescription in the last year because of the cost. Additionally, 84 percent of working-age people in the U.S. without insurance coverage for prescriptions said they had taken some action such as spending less on groceries or postponing paying other bills in order to pay for their medications, an increase from 71 percent last year (Rowan, 2012). Regarding testing for patients with cancer there should be more funding for the new technology available for test that many patients are not aware, because they cannot afford it or simply because it is not available in their area. Spending: Too much or not enough? In 2010, $2.6 trillion was spent on health care services and products, 61 percent of which purchased hospital care, physician and clinical services, and retail prescription drugs. Private health insurance paid for 33 percent, out-of-pocket sources for 12 percent, and other third party payers and programs for 7 percent. The two largest government health care programs, Medicare and Medicaid, purchased $925.1 billion worth of health care goods and services in 2010, accounting for 36 percent of total health care spending (Centers for Medicare and Medicaid Services, 2012). The increase of cost would continue to rise according to economists, health care managers, and advisors forcing for a new reform to change the system. Thus many are not too please with this idea is a phenomenal that cannot be avoid, there is a need to change in policies and methods in which we spent or invest in health care. Suggesting that the investment is too little would be a denial statement, everyday more and more patients are relying on programs such as Medicare and Medicaid to get the attention required at the moment. As the economic recession set in deeper less would be available to afford just the basic needs, medication or any treatment; unemployment rates are on the rise and it does not seem it would stop anytime soon. Although the new reform would try to establish some type of stability, until the insurance companies and policy makers come to an agreement to provide a universal premium for service which can be affordable for all, the same problems would continue to emerge. Many factors also have effect on spending considering for example the demand for new technology in the 21st century; this trend has become to some degree a factor in the rise on health care spending. Much of this new technology is beneficial if it provides a new way to used already establish technology, however many studies have revealed that most of them are only here to replace such technology and at some circumstances increase the cost of service. As a country a deeper consideration of such technology is needed not only to save money, but to invest wisely as to what would help the system cut in spending. Future economic needs of health care For years to come the enduring effects of the economic recession and slow recovery, due mostly because of partial growth in incomes, are expected to continue to limit health spending growth. In 2014 the coverage expansions laid out in the Affordable Care Act for Medicaid and for private health insurance are expected to increase the growth rate for health spending, with notable increases expected in spending on physician services and prescription drugs for newly insured patients. By the end of the year, higher income growth and the continuing shift of baby boomers into Medicare are expected to cause health spending to grow roughly two percentage points faster than overall economic growth, which is about the same differential experienced over the past thirty years. Therefore a necessary reform of a national health care perhaps would provide the change needed, the only issue with this suggestion is the funding. Thus a national health care would help every citizen reach the so needed medical attention required at an affordable price there is no surprise that the funding through Federal programs are thinning, and the cost of private insurance keeps on raising. Therefore a more evaluated reform should be put in place where the cost of care should be regulated, and more affordable options are given to the population; an increase on reimbursement of healthcare for basic health needs is necessary to subsidize the cost for complex health needs in order to keep the cost regulated. According to â€Å"Centers For Medicare And Medicaid Services† (2011), â€Å"In 2014, national health spending is projected to rise to 7.4 percent, or 2.1 percentage-points faster than in the absence of reform, as the major coverage expansions from the Affordable Care Act (ACA) are expected to result in 22 million fewer uninsured people† (National Health Expenditure Projections 2011-2021). Increases in Medicaid spending growth, and private health insurance growth will contribute to the overall acceleration in national health spending in 2014. There is no question that technology would also continue to raise to help the system provide the best and fast way possible services to those in need. Investing more in health care can only benefit the nation; however the right decisions needs to be made in order to keep the spending growth under control. Reference Centers for Medicare and Medicaid Services. (2012). Retrieved from http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/downloads/dsm-10.pdf Centers for Medicare and Medicaid Services. (2011). Retrieved from http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and -Reports/NationalHealthExpendData/Downloads/Proj2011PDF.pdf Martin A.B. et al., â€Å"Growth In US Health Spending Remained Slow in 2010; Health Share of Gross Domestic Product Was Unchanged from 2009,† Health Affairs, 2012. Physicians for a National Health Program. (2012). Retrieved from http://www.pnhp.org/news/2012/june/2012-health-care-spending-including-administration Rowan, K. (2012). Fox news.com. Retrieved from http://www.foxnews.com/health/2012/09/13/why-americans-prescriptions-are-going-unfilled/