Running head: HEALTH CARE SPENDING PAPER

Health Care Spending Paper
Lonna Becton
10/31/11
Steven Miracle

Health Care Spending Paper Health care and health care spending is a huge topic that will always be discussed for years to come. Throughout the years, there are millions of monies spent on health care organizations to make them better to improve services to the public. For a long time there have been debates on how to come up with a solution for funding. So far the issue is the same and health care spending is gradually rising. Expenditures in the U.S. on health care exceeded $2.3 trillion in 2008. As a result of this growth it has become the main policy priority as we, employers, consumers, and the government fight to keep up with expensive health care costs. Even though we all benefit from investments in health care the rapid cost growth and the economic slowdown together have great strains on the systems used to finance health care which include employer sponsored health coverage and public insurance programs like Medicare and Medicaid. Premiums for employer sponsored health insurance have increased pushing burdens on employers and employees. While workers’ wages are decreasing or at a standstill health care costs is steady growing and employees cannot afford out of pocket spending. The United States is a capitalistic country; they put the blame on private consumers and other establishments like employers or insurers. The American health care system is the most expensive one worldwide. Annual spending is constantly growing and has reached 10 to 15 percent yearly. Americans are trying to figure out what is the cause of the rising healthcare costs and what impact is on the economy. According to the Health Human and Service Department they suggested that major trends such as price inflation, population demographics, and advances in medical