Business Brief for Health Insurance- myassignmenthelp.com

Question: Discuss about theBusiness Brief for Health Insurance. Answer: Health Care The healthcare is known to provide services to the individuals of the community who suffer from preventive, curative or rehabilitative diseases. As compared to other countries of the globe, the United States has the achievement of having the biggest healthcare industry with an annual spending of $3 trillion. It is expected that by 2018, the industry would be about 18% f the GDP of the country (Stoakes, 2015). While economic progress leads to improvement of the healthcare industry, economic turndown leads to a reduction of services and downsizing in budgets. As a result of destabilisation of the nursing labour market, there are shortages beyond the recessionary time frame. Health insurance is a part of the healthcare industry where the countrys economy makes a mark. Increased unemployment leads to reduced health coverage for individuals. The performance of the country in 2016 was not up to the mark, characterised by rolling off of drug patents and drop in revenues and earnings. The decline in the sector was 7.1% (Ameritrade, 2017). 2017 promises to be better than the previous year as the economic planning is solid. For example, the 61 shares in the category of Standard Poor's 500 healthcare industries have increased by 8.9% in 2017 (Shell, 2017). In addition, there is an increased demand for advanced healthcare services, due to increase in ageing population and strong employment. The improvement is also due to improvement in the P/E ratio at 43.71 this year (Financial Times, 2017). Researchers expect that the recent growth in the healthcare sector would continue in the next year. The rationale can be attributed to enhanced demand for services, ageing population and increasing prevalence of medical conditions such as obesity (Ameritrade, 2017). Employment creation and strong financial conditions would change dividend payments, mergers, and acquisitions. Nevertheless, fluctuations might be possible due to various factors. Paraphrased Summary The United States of America is prominent on the global scale for having the biggest healthcare industry. The countrys industry treats people with diverse forms of medical complications such as preventive and curative diseases. The annual spending is $3 trillion and 18% of the GDP of the country would come from this industry in 2018 (Stoakes, 2015). There is a direct positive relationship between economic progress and improvement if this industry, while economic downturn reduces the services. Sever shortage of nursing staff beyond the recessionary period is a result of destabilisation of the same. Health insurance is dependent on the countrys economy, and thus employment deters health coverage of many individuals (Ameritrade, 2017). The year 2016 saw a very poor performance of the health sector of the country when compared to the last few years. The pharmaceutical companies struggled to combat revenue and earning decrease due to increased scrutiny of drug prices. The present year has robust balance sheets and better cost structures that would promote the economic scenario. An example is the increase of 61 shares in the category of Standard Poor's 500 healthcare industries by 8.95 in the present year (Shell, 2017). It is to be mentioned in here that the demand for healthcare services is increasing with each passing day. This is a result fo the improvement in the P/E ratio, standing at 43.71 in the present year (Financial Times, 2017). The growth experienced recently would drag till the next year. The reasons for this assumption include demand for services, the high prevalence of obesity and ageing population. Employement would also amplify services such as the dividend payments. Drug pricing and affordable care alteration would lead to changes in stocks (Ameritrade, 2017).