Healthcare Spending and Advancements in the Healthcare Sector


Health is a crucial element for every economically growing industry. It is a human right that should be a priority for every country. Thus, the government should play a vital role to ensure that its citizens have access to affordable health care so that the citizens can focus on developing the economy. According to a report published by the UN Health Agency, health spending is growing faster than the global economy. This is an indicator that countries are spending a lot on the health industry while the citizens are digging deeper into their pockets to fund their medical care. The trend is particularly evident in low-income countries as well as mid-income countries. In these countries, money spent on healthcare amounts to 6% annually while in the high-income it amounts to a staggering 4% annually.
According to the report, government caters for the most significant percentage of total healthcare cost, followed closely by insurance firms, and lastly personal out-of-pocket money. The reliance on personal healthcare payments is declining at a high pace whereby people increasingly depend on government funds and health insurance plans. The increased domestic spending on health is a good indicator of countries aiming to achieve universal healthcare coverage which should be considered as an investment in productivity, jobs, poverty reduction, inclusive economic growth, and healthier societies. The UN Health agency’s report also focused on external funding to the health sector. It is worth noting that as domestic expenditure for healthcare rose, the external financing has dropped by 1%. Also, half of the foreign funds were mainly devoted to three diseases; HIV/AID, Malaria, and Tuberculosis. All governments should prioritise healthcare through increasing accessibility while reducing the cost of services.
The United States is a global leader on many fronts including the health industry. To achieve universal health, the government set to cater for half of the total cost of healthcare by the year 2027. This will be implemented through a collaboration among the federal, state, and local governments. This is according to the CMS report. According to the report the three levels of government will be taking care of 47% of total cost. The increasing enrollment propels this rise to Medicare. The report concludes with a prediction that healthcare spending will increase at a faster rate than the overall US economy from 2018 to 2027. This will cause affordability issues for households, employers, and the government at large.


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