Health Economics is the field of study that concludes a rigorous analysis of the health system. Apply the economic theories of consumer, producer and choice; Healthcare economics aims to understand overall industry trends and the behavior of everyone involved, from consumers to healthcare providers and governments. The healthcare system in the United States underwent a significant change between the years 1750 and 2000. This meant home remedies and a structureless healthcare provider system. It subsequently evolved into an advanced and complex system, equipped with innovative technologies and bureaucratically controlled, which has modernized. The evolution of medical practices by government institutions themselves, composed of economists, doctors, health specialists and other interest groups, has been observed. It was funded by philanthropic organizations and provided a means for voluntary insurance services. Because of the Great Depression, hospitals sought to establish prepaid hospitalization plans to cover costs and benefit patients. This led to competition between hospitals. Community hospitals began offering medical coverage to the public (Swayne, 2012). The Social Security Act established in 1935 shared the costs of the elderly. 1940s In 1939, private health insurance companies covered 6% of the population. That number doubled in 1941. Then the United States entered World War II. A significant change in health insurance occurred during this time. Price control measures imposed on employers under the Stabilization Act of 1942 to limit wage increases. The law allowed employers to provide health insurance to employees as a benefit. Three forces came together and helped shape the healthcare system. In 1948, the United States Supreme Court decided to include health insurance as part of the collective bargaining process. 21st century President Barack Obama signed the Affordable Care Act into law in 2010. Its purpose was to maintain a stable health insurance policy for the masses and offer affordable services. , available and of better quality (Berwich & Hackbarth, 2012). “The United States spends more on health care, both per capita and as a share of gross domestic product (GDP), than any other country in the world” (Center for US Health System Reform, 2011, p. 1, paragraph 2 ) .ConclusionThe US healthcare system has experienced numerous transitions over the years. It has gone from being a simple method to becoming difficult to understand. From the early 19th century until the Affordable Care Act, there were several efforts to reduce costs or increase healthcare. However, healthcare has seen a huge increase in expenses and continues to increase. The United States will continue to use health economics as a tool to identify the best options for achieving decision goals