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Economic Terms and Health Care History
Amber Rainwater
HCS/440 Economics: The History of Health Care
February 26, 2012

Health Care History
Throughout the history of the United States, the economics of the health care system has experienced many changes. There are many factors to consider that has been the drive behind many of the changes within the health care system. Medical and surgical technologies are some factors that relate to the changes in health care. Besides these factors, allocating sources to fund health care services has always been the most critical factor. One might consider the economic term supply and demand when looking at the history of health care economics and the primary funding source. Health care funding has always been a challenge and will continue to be a barrier due to the lack of resources within our nation.

The primary source for funding medical services has faced many changes throughout U.S. history. The need to utilize medical services has increased, which led to the implementation of health care insurance. This came into effect due to the growing demand for health care services at a lower outer pocket expense. The challenge of funding medical services has always been a struggle. It was President Harry Truman that first approach Congress to enact a national insurance program back in 1945 After many failed attempts, President Johnson finally signed into law the Medicare and Medicaid program on July 30, 1965. Medicare is a government funded program that insures individuals 65 and older and those who are permanently disabled. Medicaid is also a government funded program that provides coverage to indigent Americans.

Health care in the United States represents an average of 17% of the GOP. Medical services have grown to be a trillion dollar business. The government is the largest source for funding health care…...

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