Health Care History

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Running Header: Economic Terms & Health care History Paper

Economic Terms & Health care History Paper

Dina Mayo-Jones

HCS/440/ Economics: The Financing of Health care

Tina Rivenbark, B.S., M.H.A.

August 1, 2011

The economics of health care has been experiencing transformations throughout the course of our country’s history. The catalyst in the world of health care economics is money, . In 2010, health care costs were roughly 17.68% of the country’s gross domestic product (GDP) with a projected growth to 19.8% by 2020 (Cummins, 2011). Spurs in higher utilization, advancements in medical care, and the ever increasing population are the major contributing factors influencing such a change. This paper will look at the birth and evolution of health insurance, while diving into the microeconomics and supply versus demand aspect of healthcare.

History- The Birth of Health Insurance

From the bartering of the early 1800s to the development of the health care reform bill, methodologies in the funding of health care services have been forever changing with an increasing price tag. In the early part of the 20th century, the country’s knowledge of medicine began to grown and with it so did the fees associated with this knowledge. Poverty drove the need for the development of a functioning health care economic system. Labor conditions and illnesses related to immigration created an environment in which individuals could no longer predict their impending medical needs or the associated costs. An answer to this dilemma came in the form of the earliest health care insurance providers and carriers.

The beginnings of health insurance can be traced back to just after the time of the Civil War, when the basis for a plan was based off of an accident. Illness-based health care delivery system began somewhere in the late 1890s. One of the…...

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