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% of GDP. In Week 2, the article by Hartman (et. al.) stated “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 in Week 1 and 2, discuss these trade-offs and how to evaluate them from an economic perspective. Specifically, do the following:
- 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.
- Identify what economic constraints overall and in the healthcare industry will occur if this happens.
- 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
- Evaluate the unique characteristics in health care that complicate this analysis.
This briefing report should be at least four double-spaced pages, include a reference page, and cover page. In writing, your report should rely largely on reference material in the course readings and summary slides in Week 1 and Week 2.