3b, 5a) Healthcare costs have increased dramatically over the past decade. Our per-person cost of health care is greater than anywhere else in the world! There are a few reasons why health care costs have increased so much, including an aging population, expensive new technologies, and third party financing.

Our third party payment system (i.e. private insurance, Medicare and Medicaid) substantially reduces out of pocket expenses to those who seek medical services. This increases demand. Doctors may also be contributing to our huge increases in healthcare spending because they get paid by the number of services they render.

In this week’s Discussion area, examine the following:

  • Should the U.S. government provide “universal healthcare” for all citizens? If so, how much additional tax are you personally willing to pay in order to pay for this program?
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