Social Issues Related to Health Insurance Industry in the US

Running head: HEALTH ECONOMICS
HEALTH ECONOMICS
Name of the Student
Name of the University
Author’s Note

1HEALTH ECONOMICS
Introduction
The purpose of this essay focuses on the social issue that is related to health insurance
industry. The health care facilities in US are owned as well as operated by the private owned
organizations. According to WHO (World Health Organizations), the US has spent high amount
on the health care and contributes to gross domestic product (GDP) of the nation. Recent
statistics reflects that private health care business creates huge problems in this nation. In US,
medicare is the single player and is the national insurance program that is administered by the
federal government (Andersen, Rice& Kominski, 2011). It is funded by premiums, general
revenue and payroll tax. It provides health insurance to both younger and aged people and is
paid through payroll tax.
Discussion
The social issues relating to health care sector include the fact that several citizens in US
are uninsured and the cost of health care ate increasing at high rate than inflation as well as
wages. Numerous indices of the effectiveness of heath care reflects that this nation’s fares poorly
as compared to other capitalist countries (Blackwell, Lucas & Clarke, 2014). In fact, inadequate
health insurance in US makes some citizens poorer as they deplete their money for spending on
illness. Some of the low income households cannot undertake Medicare in this country owing to
its increasing cost from 0.7% to 3.5%. As a result, it led to deadly consequences as these people
becomes poorer.
The possible socially optimal solutions that could solve social issues regarding health care
crisis is that the US government should take few actions and adopt policies for achieving
universal health coverage. These actions include-