health care industry economic system

Click here to view the data on historical national health expenditures (NHE) for selected years from 1970 through 2009 (Centers for Medicare & Medicaid Services [CMS], n.d.). Based on the data for these years, answer the following questions:

  • Table 1: Sources of National Health Expenditures presents a breakdown of the sources of national health expenditures for selected years from 1970 through 2009. Comment on the changes in the categories of expenditure sources (i.e., out of pocket, third party payers, and types of third party payers), both year to year changes and changes over the entire period.
  • Table 2: Public Program Payments presents a breakdown of public program payments for selected years from 1970 through 2009. Describe the situation that the state and local budget officials are facing, in economic terms, as they construct expenditure plans for Medicaid and other programs.
  • Remember that Medicaid expenditures (which approximately account for over 20% of state budgets) are increasing each year at a rate that exceeds the rise in other spending categories (such as elementary and secondary education, which approximately accounts

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