Tuesday, January 14, 2014

Slow and Steady, for Now

http://www.economist.com/blogs/democracyinamerica/2014/01/health-spending?zid=318&ah=ac379c09c1c3fb67e0e8fd1964d5247f This article is mainly talking about the uncertainty of why health spending is slowing down so dramatically. Apparently this slowdown has been going on since early 2012. Spending only rose 3.7% to $2.8 trillion, according to economist.com. The main problem was that, in 2012, healthcare grew more slowly than the economy grew; this is obviously a downturn for the economy as a whole. Economists main question is; is the slowdown of health spending "merely a cyclical blip?" According to the Congressional Budget Office, this is threatening the long term economic health. Your next question is probably "why such a slowdown?" There's clearly not one specific answer to this question. However, the current recession we face accounts for 37% of health spending. Another factor is that health care is rising, as always, so many people are buying the cheapest health care they can find which in turn makes them pay more for Dr. visits which then leads to less trips to the Dr.'s office. Hard thinking isn't necessarily required to answer why healthcare slowed down so much; in my opinion anyways. Health care is becoming outrageous in its pricing. Price for health care rises so consistently that it's hard for many people to keep up, especially considering our current economic state. Something i don't quite understand is why the health care economy isn't "at its best." So much money is pumped into the health care system from taxes and what not; how is it that they're not getting "enough" money?

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