Uninsured Case

The uninsured causes many problems in the healthcare industry today. For hospitals, they are required to treat patients in their ER regardless of ability to pay. For the uninsured, the hospital is forced to incur expenses with no revenue associated with them. As a result, the hospital takes a loss on the visit. Almost all hospitals spread out these costs to those who are insured to help cover the costs. By doing so, other insurance companies incur higher costs which in turn, passes them down to their beneficiaries (consumers) in the form of higher premiums. This leads to less disposable income for the beneficiaries, which leads to a greater stagnant economy in the United States. Physicians are also affected since the more uninsured people, the less people visit the physicians which results in lost revenues for them.Health insurance is to protect people from financial risk. Many people do not have health insurance. Discuss the implications for hospitals, physicians, the consumer and the overall United States economy of the uninsured population.Our nation’s health care policy has a negative effect on the economics of the United States. Total spending on healthcare has risen seven times from 1.2% in 1960 to 8.2% in 2009 while total spending for education has risen only 0.6 times. Over a lifetime, the average American spends 48% of its healthcare costs from the government while private pays only spend 32% and consumers pay 12%. This indicates that a majority of the American’s healthcare costs are paid by the government. As such, people are getting their health care services very inexpensively which leads to more consumption on the consumer’s part. This leads to more unnecessary costs (slide 107).

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