Healthcare expenditure: Economics of Health Reconsidered

Healthcare Expenditure

Healthcare expenditure has continued to account for a sizable portion of both government and citizen spending. Significant changes have been witnessed over the previous two decades as the government continues to raise its spending on healthcare and enact policies aimed at raising spending. There is a populist belief that raising government healthcare spending is a way to improve the quality of healthcare services offered in government institutions while still allowing for a high level of competition in the marketplace.

Influence of Technology and Economic Turbulence

While several economic sectors have seen a minor boost in spending due to currency value changes, the health sector spending has continued to increase and outpace the economic growth. While the trends for increased government spending can be attributed to investment, administration and healthcare insurance, there are non-price related elements that influence the healthcare expenditure like technology, population and the intensity of use (Rice & Unruh, 2015). Although economic turbulence has made a significant contribution to the increased expenditure, there has been a high level of technological advancements in the practices utilized to treat patients in hospitals.

Impact of Health Insurance Coverage

The expenditure has continued to increase steadily due to the shift observed in the sponsors of health. Increased health insurance coverage has had a significant impact on the amount of money that private individuals spent on healthcare. Businesses and households, as well as governments, have continued to increase their spending in healthcare. The expansion of insurance coverage through government programs like Medicare and Medicaid has further impacted the enrollment of the public into private health insurance which is a factor that has immensely affected the expenditure of households in healthcare.

Reference

Rice, T. H., & Unruh, L. (2015). The Economics of Health Reconsidered (4th ed.). Chicago: Health Administration Press.