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Economic Costs Of Health Care Essay

To cope with these rising costs, many employers will pass them on to their employees, as they are struggling to deal with this challenge (microeconomic factors). In this case, microeconomics is being applied to a macroeconomic issue, with the business forced to utilize them in their unique situation. ("Economic Theories," 2010) Increased taxes are occurring, because many businesses are forced to pay multiple taxes supporting employee health care costs in different ways. Where, they have to pay employee health benefits and then they are required to indirectly pay Medicare / Medicaid taxes. This is troubling, because businesses are forced to pay more for health care costs, through covering their employees and various taxes. (Johnson, 2010) In this aspect, a macroeconomic theory is being applied, as the overall costs that employers are paying and the taxes for government programs are resulting in double expenses / taxation. ("Economic Theories," 2010)

Once employers begin cutting back on health care coverage, these expenses are then passed on to the employee. If they are unable to afford the increased costs, they more than likely will lose their health care coverage. As a result, one could argue that this is...

(Eakin, 2004) In this case, microeconomics would be applied to this issue, as businesses will pass the increasing health care costs on to their employees. ("Economic Theories," 2010) However, the problem is that most individuals and families cannot be able to afford to pay these increases. At which point, they will more than likely lose their health care coverage. This is significant, because it shows how health care costs have been having a dramatic impact, upon both individuals and businesses. Where, they are struggling to overcome the various macroeconomic challenges from rising prices. ("Economic Theories," 2010)
Bibliography

Economic Theories. (2010). Reference for Business. Retrieved from: http://www.referenceforbusiness.com/encyclopedia/Eco-Ent/Economic-Theories.html

Eakin, D. (2004). The Uninsured and Rising Health Insurance Premiums. CBO. Retrieved from: http://www.cbo.gov/doc.cfm?index=5152&type=0

Johnson, T. (2010). Health Care Costs and U.S. Competitiveness. Council on Foreign Relations. Retrieved from: http://www.cfr.org/publication/13325/healthcare_costs_and_us_competitiveness.html

Sources used in this document:
Bibliography

Economic Theories. (2010). Reference for Business. Retrieved from: http://www.referenceforbusiness.com/encyclopedia/Eco-Ent/Economic-Theories.html

Eakin, D. (2004). The Uninsured and Rising Health Insurance Premiums. CBO. Retrieved from: http://www.cbo.gov/doc.cfm?index=5152&type=0

Johnson, T. (2010). Health Care Costs and U.S. Competitiveness. Council on Foreign Relations. Retrieved from: http://www.cfr.org/publication/13325/healthcare_costs_and_us_competitiveness.html
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