Posted: September 1st, 2022

The US Health Care Economy

The US Health Care Economy
A well-functioning health care system is fundamental to any country. It is vital to the lives, health, and general wellbeing of the people. It also plays a major role in budgetary decision making and policy formulation in relation to the economic condition. Unfortunately, the US health care system is quite complex and controversial. America does not provide universal healthcare coverage for everyone but rather a fragmented system funded by both the public and private sectors.
Even though the US boasts the greatest and the best medical expertise and clinics, it also spends more than other OECD countries. The US health care sector accounts for about 24% of total government expenditure without necessarily producing better health outcomes. According to statistics, Us health spending by private and public sectors has been gradually increasing at a pace higher than the general economic growth rate for the last couple of decades. In 1970, healthcare expenditure totaled $74.6 billion or 6.9% of the GDP, which by 2000 had grown tremendously to $1.4 trillion. By 2018, it had doubled to 3.4 trillion or 17.7% of national GDP.
However, this rate has been reducing in the past few years. But even with the decreasing rates, the expenditure on health care still represents a large portion of the total GDP. Six decades ago, health is was only 5% of the government’s spending compared to 17.7% as of 2018. And even with the enormous expenditure, the outcomes do not align with the resources used. For instance, the US health care system ranked 37th in a study led by the World Health Organization. Most OECD countries also have a relatively higher life expectancy than the United States. The growth and colossal healthcare expenditure can be attributed to factors, including the purchase of expensive modern equipment, advanced treatment methods, and numerous and complex research projects.
Health Insurance in the United States
Most Americans have health insurance covered by both public and private health insurance. The only government-funded insurance programs are Medicaid and Medicare, which are designed for vulnerable population groups, including the elderly, disabled, and children. This leaves a substantial part of the population of approximately 46 million people who cannot afford without and health insurance as per 2007. However, many people in the working category have their health insured by their employers as a fringe benefit in the employment contract.
Despite the enactment of the Patient Protection and Affordable Act Care commonly known as the “Obamacare” in 2010, which sought to address key issues regarding health insurance, 10% of Americans are still uninsured. So, if you become sick in America without insurance, you will have to pay for the treatment or risk not getting any treatment at all.

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