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Together they account for 46 article source of national health care expenditures; nearly three-quarters of this is ortho;edics to Medicare and Medicaid. Private health insurance pays for more than 35 percent of spending, and out-of-pocket consumer expenditures account for another 14 percent. Traditional national income accounts substantially understate the role of government spending in the health care sector.
Most Americans under age sixty-five receive their health insurance through their employers. This form of employee compensation is not subject to income or payroll taxes, and as a result, the tax code subsidizes employer purchase of employee health insurance. The Joint Click to see more Committee of the U.
Risk of illness and the attendant cost of care lead to the demand for health insurance. Conventional economics argues that the probability of purchasing health insurance will be greater when the consumer is particularly risk averse, when the potential loss is large, when the probability of loss is neither too large nor too small, and when incomes are lower.
The previously mentioned tax incentive for the purchase of health insurance increases the chances that health insurance will be purchased. Indeed, the randolph health orthopedics & sports medicine of a progressive income tax system implies that higher income consumers will buy even more insurance. The Current Population Survey reports that nearly 83 percent of the under-age-sixty-five population in the United States had health insurance.
More than three-quarters of these people had coverage through an employer, fewer than 10 percent purchased coverage on their own, randolph health orthopedics & sports medicine the remainder had coverage through a government orthopedis.
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