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Article Summary An Organisation for Economic Co-Operation and Development (OECD) Report

question 66

Multiple Choice

Article Summary
An Organisation for Economic Co-operation and Development (OECD) report states that administration costs for health care in the United States are the highest in the developed world, accounting for over 8 percent of spending in the health care sector, compared to a global average of about 3 percent. According to the report, expensive surgeries, high pharmaceutical costs, and corrupt practices increased global health care costs, and poor coordination between health care providers, duplication of tasks, and excessive time spent on paperwork all contributed to higher administrative costs. The report also noted that administrative costs are generally lower under government-managed health care systems than with private insurance, but governments could still significantly cut spending and improve patients' health.
Source: Alanna Petroff, "U.S. health care admin costs are double the average," money.cnn.com, January 11 2017.
-Basic supply and demand analysis indicates that having firms rather than the government provide health insurance to workers

Definitions:

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Moral Obligation

A commitment or duty to act in a morally sound manner, often beyond legal requirements, guided by personal ethics or conscience.

Income Redistribution

The process of reallocating income through taxation, welfare policies, or other government programs to reduce income inequality.

Utilitarian Justice

A theory in ethics and economics that suggests actions should be judged as morally right if they result in the greatest good for the greatest number of people.