Health Economics - Book Report/Review Example

Health Economics The economic trend as discussed in the newspaper tends to favor employee expenditure. This is because of the cut cost of healthcare expenses that makes health cover affordable to employees. According to Kaiser family foundation survey, more than 75% of employees receive health cover from their employers based on a percentage deduction from the salaries. The gradual premium growth in healthcare expenditure is fit for both employees and employers though risky to the economy. The continuation of the medical economic trend is due to weak economy and this may in future turn to be a burden to both the employee and employers.

At some point, weak economies tend to raise costs of service rendering costs to meet up to the economic stability (Feldstein, 56). Employee deductibles will continue to rise with the gradual increase in healthcare expenses, as employers have nothing to lose but to update employee deductible percentage in line with the increased medical expenses.According to the health economists, the slowdown in medical expenses is a big risk to the economy and premiums are rising gradually in relation to the survey.

Currently, employee deductibles are rising gradually and this is set to shoot sooner than expected. This can be proven by the unrealized increase in health insurance between a span of one year. Actually, the health cover premium increased by 3% between 2013 and 2014 hence calculating the increase in about five or tears to come, the percentage will rise to shock employees. The percent increase in healthcare premiums realized in 2013-2014 provides a standard percentage to be multiplied by the estimated years in the bid to understand the premium increase trend.

Work citedFeldstein, Paul J. Health Care Economics. Clifton Park, NY: Delmar Cengage Learning, 2012. Print.