Economic Terms and Health Care

Health care has come a long way is the past 50 to 100 years. In this paper I am going to go over the history of health care economic and talk about how health care has become such an important port of lives. To understand health care economic it is important to know the terms that deal with economics. We will be going elasticity and elasticity. Supply and demand in another area that will be covered. With health cost high figure out the trends may help us in the future.

The health care industry is ever evolving. Technology and taking over the industry. Most everything that is done within in a health care facility involve a computer of some sort. Looking back to the 1900’s where the United States was full of medical facilities that were doing great until The Great Depression hit. This was devastating to the economy and many were unable to pay for care for their families. Hospitals were taking in less revenue and this is where insurance plans started to come into effect. With the insurance companies the medical facilities would not have to deal with the drastic change in payments or revenue.

The use of insurance started in nonprofit hospitals. The hospitals were able to stabilize their revenue and gave the patients options with what they would be provided from the insurance. One of the next big step in America that had an enormous effect on health care insurance and the economics is when the Social Security Act was passed. This act made it so the employers could offer health insurances. This also when the government starting taking part in covering elderly and those who could afford insurance.

The latest step in trying to provide health care to all American people is the Affordable Care Act of 2010. This act will require that all citizens have health care insurance by 2015. This Affordable Care Act will also require any business with over 50 employees offer health care or pay a fine (Beaulieu, 2013). We are currently going through some of...