The health sector is one of the most significant segments in the nation, as it takes 17 % of the United States gross domestic product. Healthier nation would be able to work more efficiently and enhance the level of its productivity. Due to health care being a necessity, the government intervenes so even poor people can get essential medical treatments. Generally, we all know that market forces decide the pricing for commodities. The demand and supply of health care plays an important role in setting its price. To meet the growing aged and ill population needs, more physicians, nurses, hospitals and medicines will be required. If the supply is not maintained with the increasing demand healthcare would become unaffordable for average person. U.S government has been working since years to overcome healthcare problems. Today, healthcare has become a political issue between democrats and republicans which has made the problem even harder to solve. As we all are familiar with our government’s last shutdown and how much it hurt to our economy. One of the biggest reasons for this shutdown was due to disagreements between both parties over funding or defunding the Obama Care.
Growing Demand for Health Care
As a result of improved technology and advance medical facilities these days, life expectancy rate has been increased. People are living longer than they used they used to be, especially in the developed nations. The major reason for longer life is because of the better quality medical treatments, and advanced technology. By 2020, baby boomer generation moves into the age group of above 55 years old (United States Department of Labor, 2012). America has a huge population of baby boomers, and by 2020 many of them will require some kind of medical treatments because of being old. This would surely increase the demand for doctors, nurses, hospitals and other things related to health.
Due to extensive demand for healthcare products and services prices may rise. This would result in unaffordable healthcare for people who do not have insurance plans and may be for those people who do not have full coverage. Government might then take money out of their budget to provide Medicaid. The importance of healthcare cannot be ignored. Human life and fitness should be considered as vital as it is. Moreover, due to economic crises most companies tend not to hire full-time employees because they would have to provide health benefits. So, people might then buy medical insurance on their own which would further increase the demand for healthcare.
After the Supreme Court ruled on Affordable Care Act; Obama Care was ruled constitutional in 2012 (Lee, 2013). According to daily news we know that Obama Care will be enforced in 2014. Most Americans would have to obtain health insurance, or else they will have to pay the penalty. Therefore, in 2014 and years after that more people will be insured and this would automatically increase the demand for healthcare. Another...