Healthcare GDP in The United States

You have likely heard newscasters and politicians on television talking about the healthcare GDP but you may not know what it is all about. GDP stands for Gross Domestic Product. It is also sometimes referred to as the Gross Domestic Income or GDI. The GDP is defined as the total market value of all final services and goods that are produced in a country on an annual basis. This number is equal to the total spending done by the government and consumers. As well it takes into consideration investments.

You have likely heard newscasters and politicians on television talking about the healthcare GDP but you may not know what it is all about. GDP stands for Gross Domestic Product. It is also sometimes referred to as the Gross Domestic Income or GDI. The GDP is defined as the total market value of all final services and goods that are produced in a country on an annual basis. This number is equal to the total spending done by the government and consumers. As well it takes into consideration investments. It also includes the value of exports minus the value of imports.[br]

Whenever you hear anyone talking about healthcare spending there is usually talk of the healthcare GDP. This means how much money is put into the healthcare system affects the amount of money that makes up the GDP of a country.

Let us turn our attention to the United States. The United States spends more on healthcare than any other country across the globe. According to government projections published in Health Affairs in February 2006, spending done on healthcare will increase tremendously over the decade to come. The estimate is that the total bill for healthcare in the U.S. will exceed four trillion dollars by the time 2015 rolls around. This would take up approximately 15 to 20 percent of the GDP in the United States. In other words, this is the healthcare GDP for the United States of America.[br]

The report went on to say that although one fifth of the GDP could be consumed by healthcare costs consumers will not have to absorb the entire brunt of the expenses because medications are expected to show a reduction in price. The government could pitch in and pay approximately half of the projected costs. More and more consumers are turning to generic drugs and away from brand names which is more affordable for Medicaid insurers. Bulk discounts by pharmaceutical companies could also help bring the costs of medicine down as could the more advanced medical technology that is coming into play. The worry however is that cheaper medication may still be too expensive for those who cannot afford medical insurance. These people are often referred to as the working poor. 

The healthcare GDP is a way for the government to figure out how it is doing in terms of healthcare costs. It is also a way for it to compare spending on healthcare to other areas such as education, housing or the job market. Healthcare is always an important topic especially as the lifespan of the average person continues to rise.