Question

Comment on the changes in the categories of expenditure sources, i.e., out-of-pocket, health insurance, third party payers, etc. with respect to both year-to-year changes and across the entire period.

Include specific interpretations of why such changes are apparent (social, political, economic, etc. factors) and what strategies may be necessary to curb healthcare expenditure in the coming years.;

Support your responses with examples

Answer 1

Changes in healthcare expenditure sources reflect various influences, with fee-for-service models contributing to higher costs, government spending on entitlement programs growing, and strategies needed to address rising costs focusing on payment reform and preventative care.

Step-by-step explanation:

Expenditure sources in healthcare financing, such as out-of-pocket payments, health insurance, and third-party payers, have evolved over years due to various social, political, and economic factors. In the United States, the fee-for-service model incentivizes doctors to provide more services, which may not always be necessary, leading to increased healthcare costs. Conversely, alternative payment models can pose challenges, such as the risk that physicians prefer healthier patients to save costs, hence the need for adjustments like additional payments for treating chronic conditions.

Government spending on healthcare has also changed, with programs like Medicare and Medicaid experiencing growth and requiring substantial federal and state funds. Factors contributing to these trends include an aging population and rising healthcare costs. Strategies to curb healthcare expenditures may involve payment reform, improved healthcare efficiency, and stronger preventative care measures.