Total spending in American health care system is 17.7 Percent of GDP of which 52.2 Percent is private spending and 47.8 Percent is General Government spending. Of total spending on health, only six percent is spent on public health and rest ninety four percent is spent on personal health care system. Most of the spending in public health system is done by the state government and only 15% of the spending is done by federal government. The private spending in public health is almost same as government spending ie, 3 percent each. Bulk of the private spending is done by not for profit organizations.
The personal health care system is mainly occupied by three types of players ie. Not for profit, profit and government. Almost 70% of the market in this segment is occupied by not for profit organizations and rest 30% are equally distributed between government and private …show more content…
As individuals try to shield themselves from unwarranted high charges towards medical expenses they try to hedge their expense through Insurance hence they get more business. Moreover many discriminatory public policies such as refusal of policy to high health risk individuals, disclosure norms, high out of pocket payment, limited number of services available etc, got implemented through active lobbing by the