discussion board

Read Chapter 1: Henderson: U.S. Medical Care: A System in Transition

Discussions:

1.   Review figure 1.1 that depicts the growth in health care expenditure and the rest of the economy (GDP minus the health care). The healthcare sector’s growth in expenditure exceeds the growth of the total economy. Write a short, concise piece explaining what are the consequences in terms of employment, income, and productivity if one sector of the economy grows faster than the rest of the economy. Imagine the entire economy as a pizza that is expanding in the oven, with one slice that is expanding faster. The only problem is that the expanding slice does not taste any better, but it is sold at a higher price.

2.   Introduction of government medical insurance (Medicare, Medicaid, VA) plus private payer insurance has made those with insurance less price sensitive toward the price of their medical care needs. Is this a good thing or a bad thing? In a short, concise essay, explain your thoughts.

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