Hi, need to submit a 1750 words essay on the topic Healthcare Costs.Download file to see previous pages... A look into the year 2005, expenditure on health care was about $2 trillion or $6,697 per cap

Hi, need to submit a 1750 words essay on the topic Healthcare Costs.

A look into the year 2005, expenditure on health care was about $2 trillion or $6,697 per capita, which correspond to 16% of the GDP. The continued rise in health spending over the last four decades is going to go higher, and the expenditure will reach $4trillion, which is 20% of the GDP, by the year 2015. For many years, the continued increase in health care expenditure has been the center of heated debate in the US for many years. Research work and anecdotal reports influence further concerns. This points out that the rise in the health care expenditure is likely to harm the US economy. Expenditures on health care have the potential to affect an economy in a number of diverse and complex ways. In addition, the emerging effects may vary across all sectors of an economy as well as across population groups. One notable impact of increased expenditure on health care is the decline in the general economic growth. However, the same effect has the potential to boost economic growth in some sectors of an economy. Therefore, gaining an understanding of how increased expenditure on health care affects the economy requires an evaluation through various dimensions (Eaton et al, 2002). The state, Federal, and the local governments have the duty to collect taxes from households and business premises. The tax collections help to finance public health insurance programs as well as providing direct health care to households. On the other hand, the businesses are responsible for providing employment to households and health insurance to their employees. Therefore, the households emerge as the final consumers of the health care and at the same time bear some costs on health care (Eaton et al, 2002). It is worth noting that the impacts of health care on a single sector are likely to affect results from other sectors. An example is a situation where the government reduces its expenditure on health care by reducing the eligibility for public health insurance. This action by the government leads to an increase in un-insurance rates among households. At the same time, an increase in health care expenditure in also likely to cause an increase in taxes, reduction on investments on other critical sectors or increased government borrowing. It is also likely that companies will cut down employment and investment as a result of increased expenditures on health care (Eaton et al, 2002). The other likely effect of increased health care expenditures is inflation on the US economy. This will cause goods and services from the US to be less competitive in the international market because increased expenditures on health care will lead to an increase in product prices. Finally, increased expenditure on health care is likely to make health care inaccessible to many, produce bankrupt consumers, and reduce peoples’ retirement savings (Pauly et al, 2009). Impacts of the affordable health care for America Act HR 3962 On November, 2009, the House of representatives passed the Affordable Health Care for America Act with a vote of 220 to 215. The aim of this Act is to offer affordable, quality health care to all Americans. The bill is a multifaceted one and addresses diverse issues concerning the improvement of the health care system. Improvements on the health system include expansion of health insurance coverage, amending Medicare payments regulations in both traditional and advantage plans.