U.S.

Healthcare Economics

Overview:
~more than 17% of GDP is spend on healthcare
~ this makes it the most expensive medical system in the world
~ a large percentage of money spend it for old or dying people
~ little money is spend on preventative health
~ the medical industry (hospitals, doctors, pharmaceutical companies and
insurance companies are basically for profit (private businesses)
~ the medical industry has a lot of political power and fights against
reform

Main Problems-
Millions of uninsured (which drives up the cost for those with insurance)
Insurance companies are private, for profit, so try to avoid paying
insurance claims
The system is confusing with lots of administrative costs
The emphasis in American medicine in not on preventative medicine
(which would save money) but on new research into high tech machines
and drugs (which costs a lot of money)
Inequality: people with good insurance and money can get better health
care

Solutions- “Obama Care” (The Affordable Health Care Act”):

*not National Health Insurance, but requires private insurance companies to

provide insurance for everyone, even sick people.
- Insurance companies can compete with each other but must offer good
insurance
- People with less income can get cheaper rates…but they must have
insurance!
-Young healthy people must buy insurance, too. It’s required. (Do you know
why?)

*And many other new features to guarantee health coverage for all people.