Assignment: Applying Economic Concepts Relevant To Health Care Spending
As you learned in Week 1, health care spending is growing faster than overall growth in the economy (as measured by GDP) and by 2026 is expected to consume 20 percent of GDP. Many economists believe that the trade-offs required to finance health care spending have become increasingly challenging for both private and public payers.
Given what you have learned from the course material, discuss these trade-offs and how to evaluate them from an economic perspective. BE SURE TO USE SECTION HEADERS CORRESPONDING TO THE SECTIONS BELOW.
Specifically, do the following:
1. From an economic perspective, explain why health care spending cannot grow greater than overall growth in the economy for an extended period of time without adverse consequences.
1. Identify what economic constraints overall and in the healthcare industry will occur if this happens.
2. Identify TWO Economic concepts that can be used to evaluate the trade-off between health care and other economic goods and services. In doing this:
• Define the economic concept completely
• Apply the economic concept to the current issue of rising health care spending and trade-offs
1. Evaluate the unique characteristics in health care that complicate this analysis.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.