Macroeconomics of the health care policy in United States Essay

Macroeconomics of the health care policy in United States - Essay Example The general health care was viewed important by each and every Americans and they took pride in the development of the system within the country, the increasing use of modern updated technologies and the growth of modernized hospitals dispersed in different areas of the country. People of the country started believing that health care system of the country has been one of the contributing factors behind the enormous growth of the country. However, it appeared to be just a myth when in the twenty first century several researchers and analysts within the health care system concluded that the health care system of the country was in a position of providing proper health care to only 60% of the chronically ill of the country. Series of statistical facts regarding the health care system of the country reveal that the system is collapsing. The main reason that was viewed behind the collapse of the system was that about 15.8% of the population of the country was not provided with health ins urance despite the country being the highest in its expenditure behind the health care system of the country. The country’s expenditure of the health care sector in the year 1990 was 12 % of the total GDP of the country of that particular year which increased to 13.1 % in the year 2000. The other industrialized countries of the world mainly Canada, West Germany, and Japan spent much less on the health care of the country but still they were able to cover most of their total population much more comprehensively than the United States of America. (Kronenfeld, 2002, pp. 1-9: Patel, Rushefsky, 2006, pp34-35: Shi, Singh, 2005, p144) Use of the most advanced techniques for improving health care thus did not imply that the populations of the... The price of the products hence will not be in accordance with the consumer’s preference since the producers have more information regarding the medical service provider and other medical products. These market imperfections have always been a cause of concern of the health care system of the country. Moreover, according to the data published by OECD in the year 2003, there exists an inverse relationship between the public spending on health care and the contribution of the latter in the total GDP of the country. The data reveals that with increasing public spending the sector’s share in the GDP reduces. Regulations on the health care system reduce competition among the different providers and hence it results in a reduction of their efficiency. Moreover, a majority of the hospitals of the country are generally financed by parties other than the buyer of the health care policies and its suppliers. Thus, proper macroeconomic policies to regulate these loopholes in the he alth care system of the country are to be taken so as to ensure a proper functioning of the system with the society being optimally benefited. The government should encourage people to increase their propensity to save such that those resources come to help in times of need for buying proper and required medical and health services. With the high rate of savings, highly deductible medical insurance with low premiums can be provided by the government that will appear beneficial both from the individual and social point of view.