Health Spending and Its Effects on Future Managers

In: Business and Management

Submitted By aelk0919
Words 1004
Pages 5
Health Spending and its Effects on Future Health Care Managers
The United States spends more on healthcare than then any other country in the world. In 2012 the United States spent an average of $8,915 per person on health care, totaling $2.8 trillion. Unfortunately, spending will continue to trend upwards due to a number of key factors. According to Kaiser Health News staff writer, Mary Carey, “national health spending will increase modestly over the next decade as a result of an aging population, a recovering economy, and the health law’s expanded insurance coverage”(Carey, 2014) As baby boomers continue to age and the Affordable Care Act changes the health insurance market, “employment of medical and health services managers is projected to grow 23 percent from 2012 to 2022, much faster than the average for all occupations” (Bureau of Labor Statistics, 2014). This paper will focus on national health spending of the United States and the positive and negative effects it has on future health care managers.
The Centers of Medicare and Medicaid Services (CMS) estimates health spending grew in 2013 by 3.6 percent marking the “fifth year of historically low rates of spending growth” (Sisko et al, 2014). However, it is “forecasted to rise to 5.6 percent in 2014 due to the combined effects of the expansion of coverage from the Affordable Care Act, faster economic growth, and growing age of the population” (Sisko et al, 2014). During the next decade economic growth is projected to be faster than it has been since 2007 resulting in a demand of more health care goods and services (Sisko et al., 2014). Findings also suggest that the health share of GDP is expected to rise from 17.2 percent in 2012 to 19.3 percent in 2023. The 5.7 percent annual growth in overall health spending through 2023 is occurring as additional baby boomers continue to age into Medicare and as the…...

Similar Documents

Health Care Spending Paper

...Health Care Spending Paper HCS/440 Health Care Spending Health care spending in America is at an all-time high. The baby boomer generation is reaching retirement age and its dependence on health care is greater than ever before. This burgeoning demand for health care services has put a huge strain on the infrastructure of the health care system that was originally designed to accommodate far less Americans than it currently supports. Many financial experts predict a drastic increase in health care spending in the years ahead. According to Wayne (2012), "Federal, state and local governments are projected to spend $2.4 trillion on health care in 2021, half of all U.S. medical expenditures, according to the analysis in Health Affairs by actuaries and economists from the Centers for Medicare and Medicaid Services. Government accounted for about 46 percent of health spending through 2013” (Glide Path). This particular article shows monumental increase predicted for government funded health care in the near future. Speculation regarding the impact of the Affordable Health Care Act on future spending has been mixed. Some analysts say that spending will level-off; while others state that the reform will increase spending. According to Walker (2012), "National healthcare spending grew very little in 2011 -- just 3.9%, which was the same rate seen in 2010 -- to reach $2.7 trillion. The slow growth was mostly because of the lingering effects of the recession, the......

Words: 1458 - Pages: 6

Health Care Spending

...the exponential growth of health care spending, as a portion of the GDP, will eventually consume much of the government income as well as suck the resources from personal consumption and create more issues to spiral out of control. The writer takes a deeper angle of looking at health care spending as a result of inconsistent production. To better understand the core of the problem, looking deeper at the health services, consumption of goods, and overall usage of resources have to be seen as a basis of GDP. In other words, as a society, everything people use for everyday living must be produced by the people themselves. If society only creates a certain amount of goods and services, but more of these same goods and services are being depleted at a rate higher than production, special attention must be given to this predicament. The author does not describe particular strategies or techniques, but seems to imply areas that require more focus and attention in order to redirect funding through the proper channels. Using the GDP as its guiding force, rather than just overall health care spending, the author uses graphical analysis to show how health care must be solved internally from a production standpoint (input adjustments) rather than just explaining how much is actually demanded by consumers. Personal health consumptions have risen indirectly with that of nondurable and durable goods showing that people are forced to use more their income towards health services. In the......

Words: 1017 - Pages: 5

Health Care Spending Paper

...Health Care Spending Recently the Health Care spending has risen from 2010 to 2011, there is not much hope for the future of health care, and funds that will be or should be available. Health care spending is to continue to rise over the next few years which will make it harder for Americans to get the proper health care they need. Nationally in 2012 the United States spent an estimated $2.8 trillion; however, the health care industries growth has stayed low. Federal actuary analysis has shown that in 2011 there was $2.7 trillion spent nationally; the averages per person consisted of $8,680 spent on health care. These figures show a 3.9% of growth rates in both 2010 and 2011. Not exactly what individuals want to see concerning their health and getting the proper medical care they need (NCSL. 2013). Expenses are paid out to multiple different areas, the major areas consisting of physician and clinical services, Medicare spending, private health insurance, retail prescription drugs, and out-of-pocket spending; it was these areas that percentages rose. Major areas that slowed down in the spending rate were Medicaid and Hospital spending (NCSL. 2013). The graphs below show the area percentages in which accelerated and what slowed. Health care spending has recently proven to be too much, thinking about that $2.7 trillion spent nationally in 2011, is a big part of why the United States is in debt, and cannot pull itself out. With 2014 quickly upon......

Words: 1243 - Pages: 5

Health Care Spending

...Health Care Spending My position on national health care spending is way too much monies is going out and not enough people supporting the problem. A universal health care plan for every man, woman, and child who resides in the United States is the most economical way to achieve this goal. All working citizens must have monies automatically taken out of their paychecks and if you can afford more than the basic plan, then there will be plans available that you can upgrade to like Aflac. No matter how poor or how rich you are, everyone has the basic plan and everyone contributes to that plan. In this paper we will discuss the current level of national health care expenditures, the level of spending, where the nation should cut, and how the general public’s needs are being paid by, to finally doing some forecasting of future economic needs. At a NCSL Legislative Summit in August, 2013 it was noted that America spends, on average, nearly $9,000 per person on health care each year. The cost to the nation is $2.8 trillion, almost 18 percent of the GDP. The GDP is projected to be at 19.6 percent by 2021 (National Conference of State Legislation, 2013). In the projected years of 2011-2021 Medicare is expected to have a growth of 6.1% per year average over these years, Medicaid growth is expected to be 8.2% per year, private spending average per year 5.3%. By 2021, federal, state, and local government health care spending is projected to be nearly 50 percent of the national health......

Words: 2267 - Pages: 10

Health Care Spending

...Health care spending has caused major concern in the United States with many Americans who does not have health care coverage, and health care spending growing faster than the national income. The nation’s current health care expenditures continuously increasing and the United States continue to search for solutions to control and cut health care spending. More Americans each day are depending on Medicaid and Medicare in order cover the cost and to maintain their health care needs. The increases in health care spending, has reflected some major factors that reflect the nations sluggish economy, the labor supply and demand has decreased that has made consumers cautious in their spending and inability to afford to use health care services. Employers, in efforts to cut their cost have resulted in the use of high-deductible insurance plans by doing so has made it even more difficult for individuals to afford health care. These are some of the nation’s many challenges in controlling health care spending, assuring health care services for Americans, and exploring new option to satisfy those needs for the nation’s economy. In the United States spending for health care has grown by 3.9 percent. In 2011, estimating 2.7 trillion or 8,680 per person is spent on Americans for health care services, which accounts for 17.9 percent of the nation’s Gross Domestic Product. In 2014, the national health care spending is estimated to increase by 7.4 percent because most Americans are......

Words: 1197 - Pages: 5

Health Manager

...Articles from Health Manager Key role of health managers in new regulations 2011-03-25 12:03:55 admin In May 2011, the Medical Council launches a new system to support doctors in maintaining their professional competence throughout their professional lives. President of the Medical Council, Professor Kieran C. Murphy and Dr Paul Kavanagh, Head of Professional Competence at the Medical Council, explain the implications for health managers. Healthcare is changing. A generation ago, a doctor could complete training equipped with the knowledge and skills to remain fit-for-purpose throughout their career. Developments such as the internet now make it easier for doctors to access ever-accumulating bodies of knowledge from all over the globe which they can use to continually improve patient care. Similarly, patients’ expectations have changed as a result of being able to access an abundance of information about healthcare online. This progression in the doctor-patient relationship has created a need for transparent arrangements to help assure the public that doctors are keeping up-to-date and are committed to lifelong learning and skills development. Prof. Kieran C Murphy In May, the Medical Council will launch new professional competence schemes, which will be operated by Postgraduate Training Bodies. Registered medical practitioners will be subject to a statutory obligation to maintain professional competence. Health service managers will need to take cognisance that, for......

Words: 1028 - Pages: 5

Health Care Spending

...Health Care Spending The current health care expenditures raise the eyebrows of many Americans in the United States because of the increasing costs of health care services. Government officials are taking steps to consider the medical needs of Americans. “Health expenditures in the United States neared $2.6 trillion in 2010, over ten times the $256 billion spent in 1980” (The Henry Kaiser Family Foundation, 2012, para 1). For Americans to understand the spending of health care, this paper will consider the current national health expenditures, if the spending is too much or not enough, where the nation should add or cut costs, and how the public receives payment for health care needs. In addition, the paper will provide a forecast and the importance of the future economic needs of the health care system, and envision how the needs of health care will receive financing. Health care expenditures are not only a burden for people but also are an overwhelming thought for the government to consider a health care reform. The impact of the recession caused many Americans to consider other ways to afford coverage for medical expenses and with the growing changes of the economy, Americans placed concern on health care spending and if it is affordable (The Henry Kaiser Family Foundation, 2012). According to the Henry Kaiser Family Foundation (2012) states, “Since 2001, employer-sponsored health coverage for family premiums have increased by 113%, placing increasing cost......

Words: 1509 - Pages: 7

Health Care Spending

...Health Care Spending Marsha Whiteside October 1, 2012 HCS/440 Caryn Callahan Health Care spending is on the rise and is going to continue to rise year after year. The United States spends more on health care than any other country and with the loss of many jobs and low income families the spending is going to continue to rise. The United States spends nearly $2 trillion annually and spends two-and-half times more than the Organization for Economic Cooperation and Development (OECD) average (Johnson, 2012). There are many factors that contribute to the health care spending which include: technology, prescription drugs, rise of chronic diseases, and administrative cost. Not all people are in agreement with the health care spending in the United States and feel if there was some changes made, the spending would be lower and the United States could focus on other issues. The level of current nation health care expenditures is on the rise and is causing hardship on families as well as businesses. The United States spent seventeen percent of its gross domestic product (GDP) on health care which is higher than any other nation (Johnson, 2012). Fifty one percent of the health care expenditures in 2010 were made up of hospital care and physician/clinical services. The other forty nine percent includes: home health care, other professional services, nursing home care, Rx drugs, government administration, net cost of health insurance, investment, and other health and......

Words: 1312 - Pages: 6

Health Care Spending Paper

...Health Care Spending Paper Candace Kovacs HCS 440 January 23, 2012 Pranab Rout Health Care Spending The United States is spending trillions of dollars on health care every year. Health care spending is continuing to rise to higher levels at unsustainable rates. The excessive amounts spent on health care accounts for a substantial portion of the national budget. Trends such as the aging of the population, obesity, and technological changes are expected to affect the future of health care spending patterns (RAND Corporation, 2011). Even though health care spending seems excessive right now, there are several ways it can be addressed effectively to decrease the amount in the future. Spending The National Health Expenditures (NHE) includes the amount of spending on private and public administrative costs, personal health services, government public health spending and investments involving costs of equipment, non-commercial medical research, and buildings (U.S. Department of Health and Human Services, 2011). The current level of the NHE has raised $2.1 trillion in the year 2006, $2.25 trillion in 2007, and projects to reach $4.3 trillion by 2017 (U.S. Department of Health and Human Services, 2011). The most recent forecasts of health care estimates a yearly growth rate of seven percent, which equals to the gross domestic product (GDP) of 19.5 % by 2017 (U.S. Department of Health and Human......

Words: 1379 - Pages: 6

Health Care Spending

...National Health Care Spending Tylecia Westbrook HCS/440 Oct 8, 2014 Dr. Laura Newton Introduction Healthcare spending in the United States plays a vital role in the US economy. The healthcare field is a growing professional. There is millions of dollars that are spent on healthcare each year. From research, drugs, new technology and patient care it is the driving force of the health care system. Health care has provided lots of jobs and a means of survive for many Americans. With insurance companies driving up the cost of premieres and the new Affordable Care Act into place health care spending will only continue to drive the price up. With all of the demands for cues and people wanting to leave longer there has been a major impact on Health Care spending. Health Care Expenditures Over the last several years the U.S. health care expenditures has been on a rise. Heath care has risen so fast that many Americans have not been able to keep up even with their earning in order to be able to afford healthcare. “The U.S. spends 16 percent of gross domestic product (GDP) on health care, compared with 8 to 10 percent in most major industrialized nations” (2014, The Commonwealth Fund.). According to the Centers for Medicare and Medicaid Services projects that the increase in health spending will outpace the GDP over the next 10 years. (2014, Centers for Medicare and Medicaid). In recent headlines the healthcare rate has been at a slow rate of 3.7%. Although that may......

Words: 1252 - Pages: 6

Health Care Spending

...Health Care Spending     HCS 440 Economics: The Financing of Healthcare   Class Group: BSEW1GQMZ5   University of Phoenix Online   Instructor: Geoffrey J. Suszkowski, Ph.D., LFHIMSS   05/11/2015 Health Care Spending “In 2013 U.S. health care spending increased 3.6 percent to reach $2.9 trillion, or $9,255 per person, the fifth consecutive year of slow growth in the range of 3.6 percent and 4.1 percent. The share of the economy devoted to health spending has remained at 17.4 percent since 2009 as health spending and the Gross Domestic Product increased at similar rates for 2010 - 2013”("National Health Expenditures 2013 Highlights," 2013). The cost of health care spending greatly affects the way that individuals budget their spending. It is important the economy can adjust accordingly to individuals about whether health care spending is too much or not enough. Current Level of National Healthcare Spending The topic of healthcare spending in the United States is a controversial one, and most often, the populations' opinions doesn't always agree with those of policymakers. Getting health care spending under control is vital to the economic health of the government and the people of the United States. What makes healthcare expenditures so disgraceful is the large amount of money the government spends on healthcare each year versus the number of people without health care. The amount of money the U.S. government spends on health care each year doubles......

Words: 1810 - Pages: 8

Health Care Spending

...Health Care Reform Part I Health care spending in the United States is among the highest of industrialized nations (Health Policy Education, 2011). Health care reform found its roots in the 1900s when just prior to that physicians were caring for hospitalized patients without charge. Today it is a main political issue tipping the scales toward a presidential election. Team C chose this topic because of the serious nature and as future managers, leaders in health care administration; a greater understanding is required. This team seeks to discuss three major points in regard to health care spending, such as unnecessary spending, options if health care reforms fail, and ongoing coverage for ongoing care as it relates to macroeconomics and also propose three solutions identified within the research, respectively, information technology, influence of pricing and allocation of services, and prevention. Background Health care expenses in the United States were in excess of $2.3 trillion in 2008. Accounting for three times as much spent in 1990 and eight times that spent in 1980. According to (2010),”This equated to $7,681 per resident and accounted for 16.2% of the nation’s Gross Domestic Product (GDP)” (Background). Below is a graph taken from, which depicts how dollars were spent in regard to health care 2008. Today health care costs account for 16% of the nation’s GDP. On an individual basis, per capita, the cost is twice that of other......

Words: 2301 - Pages: 10

Health Care Spending

...Health Care Spending Jackie Shaw HCS 440 December 19th 2011 Health Care Spending The United States spends more on health care than any other country in the world. The current level of national health care expenditures is astounding. “In 2011, the anticipated total of health care government spending in the United States is 1108.2 billion dollars” (Chantrill, n.d.). Over the years the total of health care spending has increasingly amplified; in 1996 $396.78 billion was spent on health care in 2000 $469.80 billion was spent on health care, and in 2009 $989.65 billion was spent on health care (Chantrill, n.d.). Between 1996 and 2009, a period of 13 years, health care spending increased $592.87 billion dollars. In the following I will discuss the level of current national health care expenditures, whether spending is too much or not enough, where the nation should add or cut funds and why, how the public’s health care needs are paid and the future economic needs of the health care system. The level of current national health care expenditures The level of national health care expenditures is considerably high in comparison, to any other country in the world. “Health spending in the United States is much higher than in other countries – at least $2,535 dollars, or 51% higher than Norway, the next largest per capita spender” (Kaiser Family Foundation, 2011, para. 3). In addition in 2009 the United States spent more than 17% of its gross domestic product on healthcare,......

Words: 1554 - Pages: 7

Health Care Spending

...Health Care Spending in the United States Lisa Patti HCS/440 April 23, 2012 Caryn Callahan Introduction Heath care in the United States is costly and confusing. Many do not follow the facts, policies or cost the government has controlled in health care. This leads to obtaining the incorrect insurance that causes high out of pocket expenses to choosing no health insurance at all. In today’s society many cannot afford health insurance, in 2010 49.9 million people in the United States were without health insurance (Overview of the Uninsured in the United States: A Summary of the 2011 Current Population Survey, 2011). The issues that will be discussed are the level of current nation health care expenditures, whether spending is too much or not enough, where the nation should add or not, and why, and how the public’s health care needs are paid for and financed by various payers. The current level of national healthcare expenditures U.S. health care costs have risen rapidly in the past few years, imposing increased stress on families, businesses, and public budgets. Health spending is increasing more rapidly than the economy and workers' earnings. In recent years, insurance administrative overhead has been rising faster than other components of health spending, while pharmaceutical spending has increased more rapidly than spending on other health care services (The Common Wealth Fund, 2007). The national health care expenditure is a total amount spent in the United......

Words: 1140 - Pages: 5

Health Care Spending

...her for illnesses. Today in society health care organizations are working side by side with third parties, which are insurance companies, to receive payments for treating individuals when he or she become ill or are in need of serious medical attention, such as surgery procedures. Employers offer health benefits to the employees, which he or she can also add family members to his or her insurance policy to be treated and seen for health care services. The price for health care services are rising every year, and it is making it hard for most individuals to afford health care. Low income individuals and illegal immigrants are those who suffer because they cannot afford the high prices of health insurance premiums. These outrageous health care costs definitely occur because of the costly spending health care facilities due to keeping the facility open for business. The health care industry has grown to become a business and use marketing techniques to compete against other health care facilities. To keep clientele, some hospitals do major upgrades to attract and keep new and old patients. Also purchasing state of the art equipment has its advantages. It shows to outside individuals that the quality of care at their facility would be the best because of the use of smart and up to date technology. As a result of malpractice lawsuits, individuals play a role in the cost of health care services today in society. In consequence of these lawsuits, health care providers have to follow......

Words: 1214 - Pages: 5

Black Mirror 2. Sezon | child porn | More Details