Health Care Reform

Abstract

Health Care Reform is the hottest topic in today’s news. Health care expenditures are currently 18 percent of GDP and are expected to reach 34 percent by 2040. The costs of health care have risen rapidly and are expected to rise even more in the future. Today, 46 million Americans are uninsured and 25 million are underinsured. If health care cost growth is not sustained, the budget deficit will grow sharply since almost half of current health care spending is covered by Federal, state, and local governments. The health care reform plans proposes to offer affordable, comprehensive and portable coverage. It pledges to control the rising health care cost and improving the quality of care.

Summary

Health care reform is one of the hottest topics in today’s news. The high and rising cost of healthcare is significant issue for people, businesses, and government. Current projections in 2009 estimates that total health care spending contributes to 18 percent of total GDP, 20.3 percent by 2018 and are expected to reach 34 percent by 2040. Figure below shows National Health Expenditures as a Share of GDP, 1980-2040.

According to projections released by economists at the Centers of Medicare and Medicaid, estimates health care spending to rise from $2.4 trillion in 2009 to $4.4 trillion in 2018. An average of $8,160 per person is spent on health care which is twice as much per person in any other developed country. With all this spending, the current system is increasingly inaccessible to nearly 46 million Americans who have are uninsured and 25 million other who are underinsured. The cost of health care is skyrocketing and health insurance premiums have doubled rising to 3.7 times faster than wages in the past 8 years. Soaring medical cost is even affecting the coved who are struggling to cope with the increased cost. Almost half of all personal bankruptcies are caused by medical bills today.

The current health care system is more costly...