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Health Economics HSA 510 Week 3 Assignment 1 4/22/2012

Question #1 Describe how you would assess the impact of the health care issue you selected in microeconomic terms. The health care issue I have chosen is the uninsured Americans and the cost effect on the Unites States government. The issue of uninsured Americans has been one issue that keeps coming up from time to time because a large number of the society are losing their medical insurance due to loss of employments and pre-existing conditions that most insurance company don’t accept. Government and the hospital emergency rooms where those that are uninsured end up going are at the losing end on whole situation. I will try and use Cost Benefit Analysis to evaluate the cost of the uninsured on the Government purse. Cost benefit analysis is an important economical tool that can be used in the healthcare industry because it helps in determining what the outcome of a project would be. It looks at both the positive and the negative aspect of the program. It will also show the cost and consequence of being uninsured. According to Jack Hadley, the Principal Research Associate at The Urban Institute, uninsured Americans have cost the Federal government in the three following ways:
The Government already spends a substantial amount of money on care to the uninsured According to (Jack Hadley, 2003) it is estimated that in 2001 that the nation spent about $35 billion on uncompensated care received by uninsured, both those who are uninsured for a full year and those who lack coverage for part of a year. It shows that about two-third of uncompensated care which amount to $24 billion was provided by hospital caring for

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