Homework Question on Health Care Costs
- At a minimum, answer at least one of the following questions.
- Why should the concept of need not be the sole determinant of the demand for medical care?
- How do you see the implications of Supply and Demand theory show up in your company’s strategies?
- Thinking outside the box, what types of changes could we make that would make health care cheaper?
- If health care is cheaper, who benefits and how do they benefit?
- Do you agree or disagree with the author’s conclusion as to the reason why health costs have not declined? Why
Homework Answer on Health Care Costs
Health care is a basic need of any population in the world. Governments spend billions of dollars on medical care. Citizens also spend a substantial amount of money on health care. It has always been the plea of the public that health care cost is lowered to make it accessible, and also reduce the chunk it consumes on family budget. Lowering health care costs would be of great benefit to the general public, but would affect private hospitals (Abegunde et al, 2007).
Low health costs would ease the huge burden that the government is bearing. This would allow the government to divert funds spent on medical care to other core government functions. Currently, the United States health budget constitutes over 10% of the total expenditure. This expenditure is higher than the recommended amount of 6% of national expenditure (Abegunde et al, 2007). This money is spent on medicine, wages, health equipments, and subsidizing medical care cost.
This implies that if this expenditure was to reduce, the government would save billions of dollars. This money would enable the government to deal with its core functions that it must deal with every year. Most of this money spent in the health docket ends up in the accounts of multinationals that sell drugs and equipments. If the costs were to be lowered through advocating for a healthy nation, then these companies would incur huge losses.