Identify TWO Economic concepts that can be used to evaluate the trade-off between health care and other economic goods and services.
Assessment #1: (15%)
As you learned in Week 1, health care spending is growing faster than overall growth in the economy (as measured by GDP) and by 2026 is expected to consume 20 percent of GDP. In Week 2, the article by Hartman (et. al.) states that “the trade-offs required to finance health care spending have become increasingly challenging for both private and public payers.”
Given what you have learned from the course material in Week 1 and 2, discuss these trade-offs and how to evaluate them from an economic perspective.
Specifically, write a briefing report (not just a standard essay) that does the following:
- From an economic perspective, explain why health care spending cannot grow greater than the overall growth in the economy for an extended period of time without adverse consequences. Identify what economic constraints overall and in the healthcare industry will occur if this happens.
- Identify TWO Economic concepts that can be used to evaluate the trade-off between health care and other economic goods and services. In doing this:
- Define the economic concept completely
- Apply the economic concept to the current issue of rising health care spending and trade-offs
- Evaluate the unique characteristics of health care that complicate this analysis.
Your briefing report should be at least four double-spaced pages, including a reference page, but excluding the required cover page. In writing, your report you should rely largely on reference material in the readings in this course, and the summary slides from Week 1 and Week 2.