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...
Drugs are an especially significant problem. The high cost of prescription drugs, however, does not just derive from the expertise to develop them. Drug companies receive patent protection for drugs that allows them to charge monopoly rents. This is a distortion in the market, one that the government has determined to be socially favorable. The cost, however, has reached the point where drug costs are also socially unfavorable, particularly
Economics of Healthcare The Economics of Health Care The healthcare in the United States is a system of economics that has been referred to as a Ponzi scheme and most assuredly, the economics of the U.S. healthcare system are unsound at best. The United States is the only industrialized nation in the world that fails to provide universal access to basic health care and according to the work of Kilchevsky (2004), 'the
Healthcare Economics Overall Healthcare And Economics Healthcare economics: Current challenges from a nursing perspective Although the subject of healthcare economics has been hotly-debated, on one issue there is widespread agreement: the aging of the population will substantively increase the demand for healthcare in the near and far future. As the population worldwide is aging and living longer, the need for essential services over a longer lifespan will generate more costs for an already-beleaguered
Besides the health care has strong externality influences than that of other goods and services. The cost of caring a sick person may entail heavy financial burden on the patient's family. In the real world markets for other goods and services tends to approach towards market perfection that assumes a strict set of conditions such as, perfect information, several sellers and buyers, a uniform type of product and freedom to
The considerations of that which is physical and that which is fiscal in the work of Sajay (2005) are clearly polar opposites therefore in no way are they comprehensibly compatible but are destined to be at odds with one the other. Summarization The inherent conflict that exists between financial accounting and accounting for performance are separated by a very thin line. That differentiation is because the focus of the business, management,
(Eric 15-16) President Obama & Proposed Tax I think, President Obama should support the sin tax on all alcoholic beverages. The reason is that the youth of United States is getting involved in excessive drinking day by day; thus resulting in societal as well as personal harms. Excessive usage of alcohol is also a major reason for increased obesity in United States which is in turn causing healthcare problem in the
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