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Why are health care prices on the rise
Why are health care prices on the rise
Why are health care prices on the rise
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Healthcare didn’t always exist in the United States. Before the 1920’s, most people didn’t have health coverage. Most people were treated at home and hardly anyone, except a few large employers offered healthcare. Everyone else paid out of pocket. As the population shifted from rural areas to urban centers, families lived in smaller homes with less room to care for sick family members (Faulkner 1960, p. 509). Increasing requirements for licensing and accreditation, in addition to a rising demand for medical care, eventually led to rising costs. By the end of 1920s, there was an increased demand for medical care and the costs of medical care increased.
During the time of the Great Depression and after, medical service plans grew. In the 40s, prepaid group healthcare began and during World War 2, wage and price controls were placed on American employers, so employers started to offer health benefits in order to compete for workers. Healthcare expenditures were 4.5 percent of GDP in the 50s and hospital care doubled.
Also in the 1950s, more medications become available. During the 70s, healthcare costs escalate rapidly. One reason is because of the unanticipated high Medicare costs. Another is because of rapid inflation in the economy as well as changes in medical care which include a greater use of technology, medications and other approaches to treatment. Health insurance has increased and been an important issue for all employers, the government and employees ever since.
Importance of Health Insurance
Having health insurance is valuable for a number of reasons. Having health insurance is important for multiple reasons. One reason is that people without insurance are given less medical care and less timely care. People w...
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...oup, National Health Care Expenditures Data, January 2012.
Martin, A.B. et al. January 2012. Growth in US health spending remained slow in 2010; Health share of gross domestic product was unchanged from 2009. Health Affairs 31(1): 208-219.
"Why Health Care Benefits Are Important to Your Business." Health Insurance Plans for Employers, Individual, Family, Medicare and Dental. Web. 27 Mar. 2012. .
"Why Is Health Insurance Important?" Health Insurance Companies Providers Issues Advocacy and Articles. Web. 27 Mar. 2012. .
"Why Is Health Insurance Important?" LIVESTRONG.COM. Web. 27 Mar. 2012. .
"The Pros and Cons of ObamaCare." UPMC. N.p., 6 Nov 2013. Web. 14 Apr 2014.
In the 1800’s, the Netherlands, Sweden, and Belgium, among others, began to establish “socialized insurance policies” and medical care, which are still in effect today, while at the same time, the United States began to furthe...
These advancements have come with a hefty price tag the government has subsidized, incidentally creating a dependence upon such subsidies. Sheer demand for services as the population grows (and grows older) ...
Access to healthcare provides financial stability by assuring people that they will not be financially destroyed by injury or illness. Additionally, when people can afford regular medical care they tend to avoid chronic problems and financial stress. In a study provided by the American Medical Students Association, researchers reviewed the costs and benefits of universal health care. They came to the conclusion, after reviewing other articles and statistics from multiple sources, that, “The annual cost of diminished health and shorter life spans of Americans without insurance is $65-$130 billion.” (Chua 5) This comes from people not having adequate health care and then losing their jobs because they...
On a global scale, the United States is a relatively wealthy country of advanced industrialization. Unfortunately, the healthcare system is among the costliest, spending close to 18% of gross domestic product (GDP) towards funding healthcare (2011). No universal healthcare coverage is currently available. United States healthcare is currently funded through private, federal, state, and local sources. Coverage is provided privately and through the government and military. Nearly 85% of the U.S. population is covered to some extent, leaving a population of close to 48 million without any type of health insurance. Cost is the primary reason for lack of insurance and individuals foregoing medical care and use of prescription medications.
The United States spends vast amounts on its healthcare, while falling short of achieving superiority over other developed nations. One cannot overlook that the deepening recession has left many without jobs and therefore lacking health insurance. According to Fairhall and Steadman, (2009), even though the recession is hard on all, it is worse on the uninsured due to health care and insurance cost rising faster than incomes. Nevertheless, even those with jobs are lacking in health insurance due to employers, who provide insurance, are increasingly dropping their sponsored insurance. Many find that purchasing a health policy or paying for medical care out-of-pocket is cost prohibitive. “Since the recession began in December 2007, the number of unemployed Americans has increased by 3.6 million,” (Fairhall & Steadman, 2009). In 2009 it was stated that approximately 46 million Americans were uninsured, however not all of that number is due to the inability to afford coverage. According to a 2009 story written by Christopher Weaver of Kaiser Health News, 43% of that number should be classified as “voluntarily” uninsured. This subset of uninsured Americans consist of nearly half being young and healthy; therefo...
Despite the established health care facilities in the United States, most citizens do not have access to proper medical care. We must appreciate from the very onset that a healthy and strong nation must have a proper health care system. Such a health system should be available and affordable to all. The cost of health services is high. In fact, the ...
Employee health benefit plans flourished in the 1940’s and 1950’s. Unions bargained for better benefits, which included tax-free, employer-paid health insurance. When war hit between 1939 and 1945, government froze wages which led to an increase of group health care. Since employers were unable to attract employees with higher wages, employers decided to improve their benefits package by adding health care coverage. Gove...
Health insurance, too many American citizens, is not an option. However, some citizens find it unnecessary. Working in the health care field, I witness the effects of uninsured patients on medical offices. Too often, I see a “self-pay” patient receive care from their doctor and then fail to pay for it. Altogether, their refusal to pay leaves the office at a loss of money and calls for patients to pay extra in covering for the cost of the care the uninsured patient received. One office visit does not seem like too big of an expense, but multiple patients failing to pay for the care they receive adds up. Imagine the hospital bills that patients fail to pay; health services in a hospital are double, sometimes triple, in price at a hospital. It is unfair that paying patients are responsible for covering these unpaid services. Luckily, the Affordable Care Act was passed on March 23, 2010, otherwise known as Obamacare. Obamacare is necessary in America because it calls for all citizens to be health insured, no worrying about pre-existing conditions, and free benefits for men and women’s health.
There are three issues when it comes to the health care cost rising. The first is the rising cost in prescription drugs. The second area of rising cost is the increased technologies when it comes to the medical industry. The third problem is the aging population. Prescription drugs are the area of the fastest growing health care expense, and it is projected to grow at 20 to 30 percent each year over the next several years. There are many newer, more expensive drugs on the market, and the use of these prescriptions is exploding. In addition, with so much television advertising, many consumers ask their doctors for expensive, brand name drugs when there may actually be a generic drug that works just as well.
Regional Market: During the 1960’s, the hospital industry boomed with billions of dollars for hospital construction with additional funds for expansion and construction of medical schools. Government sought to reduce health care costs through cutbacks in subsidy programs and cost-control regulations. Innovations in health care delivery severely reduced the number of patients serviced by hospitals.
Approximately 1 in 5 Americans do not have medical insurance and are more likely to lack a usual source of medical care, and more likely to skip routine medical care because of the very high costs, increasing their risk for serious health conditions. For the program, increasing the access to routine medical care and medical insurance are very important steps to achieve their goal of improving America’s health. The access to health services leading health indicators are those with medical insurance and a usual primary care provider. The access to health services in a regular basis can prevent disease and disability, detect and treat health conditions, increase quality of life, decrease the probability of premature death, and increase life
Health insurance facilitates entry into the health care system. Uninsured people are less likely to receive medical care and more likely to have poor health. Many Americans are foregoing medical care because they cannot afford it, or are struggling to pay their medical bills. “Adults in the US are more likely to go without health care due to cost” (Schoen, Osborn, Squires, Doty, & Pierson, 2010) Many of the currently uninsured or underinsured are forced accept inferior plans with large out-of-pocket costs, or are not be able to afford coverage offered by private health insurers. This lack of adequate coverage makes it difficult for people to get the health care they need and can have a particularly serious impact on a person's health and stability.
The US health system has both considerable strengths and notable weaknesses. With a large and well-trained health workforce, access to a wide range of high-quality medical specialists as well as secondary and tertiary institutions, patient outcomes are among the best in the world. But the US also suffers from incomplete coverage of its population, and health expenditure levels per person far exceed all other countries. Poor measures on many objective and subjective indicators of quality and outcomes plague the US health care system. In addition, an unequal distribution of resources across the country and among different population groups results in poor access to care for many citizens. Efforts to provide comprehensive, national health insurance in the United States go back to the Great Depression, and nearly every president since Harry S. Truman has proposed some form of national health insurance.
As of 2013 data, the US per capita government expenditure was $4307 while total per capita expenditure on health spending was $9146, which is 17.1 percent of the GDP (2013) for the total expenditure on health. The annual rate of growth in per capita government spending on healthcare has been roughly 5.1 percent over the past thirty years (WHO, 2015). This rate of spending on health care growing faster than the economy for many years creates challenges ...