In this paper I will discuss the history and evolution of healthcare economics and the timing of healthcare funding. In the 21st Century healthcare is proven to be one the largest industries that generates a great deal of money in the world. Therehas been a dramtic change in healthcre the last last hundred years. As changes and progression are examined, it becomes clear that healthcare along with the economy has created an important part of the American life.
Health care economics presents information where efficiency and equity goals are pursued. Furthermore, economics establishes a framework by maximizing benefits using resources at hand. Kenneth Arrow, the person responsible for mentioning the idea of health
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Health care cost increased from roughly $2 billion in 1980 to $5 billion in 1987. Throughout the 80’s, healthcare delivery became deinstitutionalized as medical marketing competition continued to intensify in the industry. Healthcare advertising costs reached $2 billion each year throughout the 80’s as well. As expected, the advertising influenced the high levels of health care consumption which then surged the costs of insurance companies, which overall resulted in an increase in health insurance rates. Furthermore, the increasing competition also encouraged hospitals to increase physician practices and ambulatory surgical centers. Medicare payment for physicians increased from $7 billion in 1980 to $18 billion in 1986, which is a drastic increase of 142%.
Bill Clinton presented a health care system that was managed by the government when his term started in 1993. The proposed plan would increase federal spending over $1.5 trillion through a five year time frame and the funding would come from the increment in taxes Americans would have to pay. The government first proposed that they would assign the healthcare plan for each American. The immediate downfall for the American is that they no longer have the option to choose their doctor or health plan.
The health care system is currently in a state of reform throughout the United States. In recent events, president Obama signed a legislation on March 23, 2010 to