Economic history and evolution of health care economics

Healthcare has been changed dramatically during the years from back in 1960 to today. The economics crises have taken over majority of its courses for these changes. What is economic history and health care funding? Economic history is the way people dealt with supply and demand, cost of production of a product, the levels of income and distribution of wealth, the structure of overseas trade, and the volume and direction of investment, (Adelman, 1985). In today’s society health care and medicine has become one of the life savers for patients with health care issues.

More and more new technologies, research, development of new procedures and medications have taken over a major change in health care industry while comparing to back in 1940’s when there was less facilities, doctors, technologies, and medicines available for treatment of major and chronic diseases. Health Care funding is defined as a method for patients to pay for their medical costs. During the early years of 1940’s, there were no Medical or Medicaid , HMO or PPO plans available and neither was there any government

funding available for low and no income families as it is today. In today’s society the Obama health care reform is helping millions paying for their health care expenses by providing Medical, Medicaid and or discounted health insurance plans from various companies with no or low income families. Millions are benefitting from this program today in comparison from the early 1940’s century. Today the debate continues between the poor and rich as to how and if the new health care reform program is beneficial for the economy and how it will affect the nation.

The timeline below describes and shows how the government was involved in the health care funding and economy back from the early 1940’s till it is today. Health Care Funding Timeline 1935-At this time during thegreat depression, President Franklin D. Roosevelt had signed another act into law, and that was the Social Security Act. 1940’s For the second time, war put an end to any possibility for achievement of national health insurance. In 1943, there was a ruling from the The War Labor Board that certain work benefits, including health insurance coverage, should be excluded from wage and price controls.

1946-In 1946 President Truman signs the Hospital Survey and Construction Act. This act would give states the access needed to federal grants for the maintenance and construction of public health centers. This act also provides care to all patients regardless of the race, nationality and religion. 1960’s The Kerr-Mills Act provided states with federal grants pay for health care for the elderly poor. He only had the support from 28 states who signed on for this act. John Kennedy proposed legislation in 1962 for hospital care for seniors under Social Security. However the opposing democrats blocked his proposal.

During the election in 1964, Medicare was made a priority in the health care reform in USA. 1970’s By 1970, the health care costs had grown rapidly and therefore the number of uninsured patients among the elderly had grown which grew a major concern for the government and the health care reform. The country had started to face major health care crises. Sen. Ted Kennedy held hearings around the country and issued a report, “ The Health Care Crisis in America,” generating support for his bill, the ‘ Health Security Act,’ a universal single payer plan with a national health budget, no consumer cost-sharing, financed through payroll taxes.

President Nixon proposed for an employer mandate which required employers to provide health care coverage to employees or to pay tax for the unemployment. 1980’s During the 1970’s the economic inequalities increased and decline in income. President Carter submitted cost control legislation which again didn’t pass. With the election of Ronald Reagan, a bill for the expansion of Medicare Catastrophic coverage was signed and Congress passed an expansion of Medicaid. 1990’s By 1990, a major healthcare crises hits United States.

Almost about 38 million people were without health insurance due to the recession that hit United States in 1990. It left people with no option to decline health care coverage. Private Insurance programs were at high pace , rates were increased by 90% and wages were at 28% between 1987 and year 1993. Wide range of proposals was put in for consideration for the better. The Clinton campaign was put into consideration. As president, Clinton appointed a task force to develop the concept into legislation, the Health Security Act (HSA).

This act would have created universal coverage for the employer and the individual mandates. Due to the budget, the democrats did not approve of it. This bill never made it out of the committee. 2000’s President Bush signs Medicare Prescription Drug Improvement Act into law in 2003. President Obama and the congress discussed the health care plans and spend over a year in doing research and planning for new plans to find solutions that would require businesses to cover for health care coverage for their employees.

2010 -Today An adequate summary of the background and components of the Patient Protection Affordable Care Act signed into law March 3, 2010 by President Obama is beyond the scope of this space. It will be discussed in detail at a presentation Dec. 4th. This act was signed on March 23, 2010. January 1, 2014 Obama Health Care Reform takes into effect. In conclusion, as you can see health care issue has been ongoing for decades and has not been solved in United States as of today. We are still debating the costs, benefits and economical effects on health care for our people.

While comparison from the 1940’s life was much simpler and less stressful for people and less issues while in today’s society there is more paperwork, more laws and requirements involved before a patient can be seen at a local clinic or hospital. Back in the days it was easier for patients to get treatment in a clinic or hospital while today a patient can easily be seen if he or she has some kind of medical or health insurance coverage. There is still hope that someday our nation will become better for our people in providing a better health care coverage and service to all.