“On average, more than 85 percent of every insurance premium pays directly for medical costs. In fact, health insurance companies have some of the slimmest profit margins in the health care industry” (bcbsnc.com, 2012). Understanding where our health care dollar goes doesn’t fully explain why costs are r...
Their published study found that between 1981 and 2001, medical related bankruptcies have increased by an astounding 2,200 percent. This when compared to the 360% growth in all personal bankruptcies during the same period, is simply a figure that cannot go ignored. “About twenty-five years ago, filing for bankruptcy because of debts from medical problems was virtually unheard of.” (Frosch, 2005) Today medical costs are the second leading cause of personal bankruptcy, topped only by job loss. One factor affecting this rise in personal bankruptcies relating to medical costs is the dramatically increasing health care costs in the United States. “In 2002 American paid an average of $5440 in medical expenditures, up $419 from the previous year alone.” (Frosch, 2005) The major increases in medical costs can be attributed to technological advancements and the high costs associated with break-through drugs.
These continued increases are causing a lot of Americans to struggle to pay their health care costs, leading to 26% of Americans reporting either a family member or themselves as having problems paying medical bills acquired in the past year and 58% of Americans said they have even stopped or delayed medical care because of the costs (2). If we go back to the $2.6 TRILLION dollars spent in 2010 by Americans seeking health care, how is that broken down? 30.74% went to the hospitals that patients visited, 20.04% to the physicians, 10.01% to the coverage of prescription drugs, 5.44% to nursing or continued care, and 3.75% to the private health care administration costs; totaling 69.98%, leaving 30.02% of the money spent on structures/equipment, dental, public health activities, home health, research, and other expenses. In 2011, the Health Care Cost Institute reported that the rising cost of care were the driving power behind the risi... ... middle of paper ... ...Statistics-Trends-and-Reports/NationalHealthExpendData/Downloads/Proj2011PDF.pdf 2 Kaiser Family Foundation, “Employer Health Benefits: 2012 Annual Survey.” September 2012. http://ehbs.kff.org/pdf/2012/8345.pdf 3 Health Care Cost Institute, “2011 Health Care Cost and Utilization Report.” Sept. 25, 2012 4 Commonwealth Fund, “Explaining High Health Care Spending in the United States: An International Comparison of Supply, Utilization, Prices, and Quality” May 2012. http://www.commonwealthfund.org/~/media/Files/Publications/Issue%20Brief/2012/May/1595_Squires_explaining_high_hlt_care_spending_intl_brief.pdf 5 Commonwealth Fund, “The U.S. Health System in Perspective: A Comparison of Twelve Industrialized Nations” July 2011. http://www.commonwealthfund.org/~/media/Files/Publications/Issue%20Brief/2011/Jul/1532_Squires_US_hlt_sys_comparison_12_nations_intl_brief_v2.pdf
?According to the Bureau of Labor education at the university of main (2003), America spends more money oh health care than any other nation, "$4,178 per capita on health care in 1998?, compared to the average of $1,783. (BLE., 2003, p.23). Still an estimated "42.5 million Americans are living without health insurance", which prevents them from receiving medical treatment. (Climan, Scharff, 2003, p.33). The numbers of un-insured Americans continue to rise.
Executive Summary The leading cause of deaths amongst American's in the early twentieth century was due to infectious diseases. However, since the early 1990's that health concern has change to an even bigger one, unhealthy lifestyles. Diseases such as heart disease, chronic obstructive pulmonary disease, type II diabetes, cancer, and obesity are the largest contributors to death amongst Americans in today’s society. In addition, healthcare related costs have been on the rise for employers, leading to trillions of dollars spent annually. For example, in 2001, cardiovascular disease resulted in more than $129 billion in lost productivity in the ... ... middle of paper ... ...07.
The Clinton Health Plan The health care situation in the United States is in dire need of a change. The United States spends more money on health care per individual than any other nation in the world (14%of its GNP in 1991), and that amount is quickly rising. Virtually everyone, from doctors to politicians, recognize the unwieldy situation of health care in America, and realize that something must be done. In order to attempt to correct the failures of the current health care situation, one must understand the problems that led to the deterioration of the health care system. Perhaps the main problem with health care today is that there are 37 million Americans without insurance, and another 20 million are underinsured Another large problem with the way health care is presently organized is - as Clinton helpfully points out - waste.
In fact, Wilper et al compares health insurance and mortality rate, with their argument being that the lack of health insurance is the cause of 45,000 adult deaths that take place in America every year. The same problem has been advocated by researchers such as David Cecere, of Cambridge Health Alliance. According to Cecere, lack of health insurance is the cause of most adult deaths in the US every year. Cecere also argues that the figure provided by Wilper et al is two and half times higher compared to estimates provided by the Institute of Medicine (IOM). Another research published by the American Journal of Public Health established that adult Americans who are uninsured have a 40% more risk of dying compared to those with health cover, further emphasizing on Wilper et al argument.
The high cost of insurances is one of the main reasons why people is underinsured. According to “Nurse’s Guide to Single Payer Health Care” 47 millions of Americans does not have health insurance also the same article explains that medical care in the United States rises 7% a year. For example, my friend Roberto, whose incomes hardly cover his rent and basic services, could not afford a $300 monthly payment for insurance, but with a National Health program his monthly payment is reduced to $70. Thus, lower cost increases people under coverage and produce higher incomes for
Profit margins for insurance companies became steeper, but the health of Americans suffered. The number of individuals who were uninsured or underinsured due to the expense of insurance was rising, and debt due to medical bills was mounting and crippling the American people. Approximately 20% of all bankruptcies were linked to medical costs, and hospitals spent well over $1 billion dollars annually on uninsured patients and uncompensated bills. (Stephens and Ludlow 98, 101) The costs of this healthcare crisis went beyond the mere monetary. Those without health insurance were less likely to have regular physical exams and preventative care.
Medication errors in the United States cost hospitals and insurance companies billions of dollars every year. Each year written prescription errors cost thousands of Americans their life. Medication errors are costly to the healthcare system and the implementation of the electronic prescription system in hospitals and physician offices is sporadic. The government has implemented many incentive programs to encourage hospitals and private practices to adopt the use of electronic prescription systems. The introduction of the electronic prescription has reduced medication errors in hospitals and physician’s practices cutting the cost of health care.