1) What are the two primary types of healthcare financing in the United States?
The two types of healthcare financing in the United States are private and public. For
private financing, the funds used to run the healthcare systems are generated from the
individual’s insurance covers and Medicare. On the other hand, the public financing is primarily
supported by the taxes collected from the citizens. Either way, both the private and public means
of financing are not necessarily free as is purported by many. The public doctors who are seen
from their offices are paid by the government and their salary comes from the taxes (Economics
of Healthcare: Crash Course Econ #29, 2016). The private hospitals are run by the insurance
covers which the people subscribe for on a regular basis, either monthly, quarterly or annually.
2) How is purchasing health care different than purchasing other products and services?
Unlike other products which are paid for before or after delivery, healthcare is a product
that one should be ready to purchase at any given time. For example, if one sets out riding on a
bicycle, he or she does not plan that they might fall down with the bicycle. However, when he or
she is involved in an accident, he or she will be forced to pay for the care and treatment that he or
she has been given (Economics of Healthcare: Crash Course Econ #29, 2016). Through the
taxes and insurance, an individual pays for the healthcare prior to the time when they visit the
hospitals to be serviced.
3) What are the three criteria for assessing health care effectiveness?
The three ways of assessing the effectiveness of healthcare are cost, accessibility, and
efficiency. Effectiveness is a measure of the degree or extent to which the health services
HEALTHCARE IN THE UNITED STATES 3
contributes to the improvement of the health of the patients in the populations. Efficiency, on the
other hand, makes an evaluation of the relationship which exists between the health outcomes
and the resources which are required to produce such outcomes. Equity is concerned with the
distribution of health services and health resources (Economics of Healthcare: Crash Course
Econ #29, 2016). Cost is a measure of the affordability of the health services by the population
for which it is offered.
4) What three main factors lead to high cost of health care in the United States and how is
this different from other countries? Discuss each factor and provide detail
Several factors contribute to the high cost of health services in the United States which
makes it quite different from the other countries. The first factor is the rising price of services.
Price and intensity are major contributing factors to the rising costs. The second reason for this
rise is that more money is spent on specific conditions. For instance, a lot is spent on curbing the
menace of diabetes. Outpatient treatment is another reason for the rise in the price because there
is much more spent when a patient is handled without the hospital than when he or she is handled
within (This is why US health care is so expensive, 2017). The last contributing factor is
Pharmaceutical drugs whose prices are determined by the manufacturer. Contrary to other
countries where the prices are determined by the purchasing entity.
5) What is the Iron Triangle in Health Care? Is this a problem that should be resolved?
HEALTHCARE IN THE UNITED STATES 4
The Iron Triangle of Health is a concept that describes three healthcare issues which are
the primary concerns in all the healthcare systems. These issues are; Cost, Quality, and Access.
The triangle is Iron in the sense that it is close to the impossibility to have low – cost, high –
quality, wide access healthcare system (This is why US health care is so expensive, 2017).
Despite these impossibilities, serious efforts put in place can help reduce the costs as much as
possible so that more people can have an access to the healthcare and this will result into a
population that is healthier and more productive. Therefore, this problem can partly be solved.
HEALTHCARE IN THE UNITED STATES 5
The Economics of Healthcare: Crash Course Econ #29 [Video file]. (2016, April 6). Retrieved
This is why US health care is so expensive [Video file]. (2017, September 20). Retrieved from