In order to make ones’ health care coverage more affordable, the nation needs to address the continually increasing medical care costs. Approximately more than one-sixth of the United States economy is devoted to health care spending, such as: soaring prices for medical services, costly prescription drugs, newly advanced medical technology, and even unhealthy lifestyles. Our system is spending approximately $2.7 trillion annually on health care. According to experts, it is estimated that approximately 20%-30% of that spending (approx. $800 billion a year) appears to go towards wasteful, redundant, or even inefficient care.
(n.d.). Timeline: What’s changing and when. Retrieved September 17, 2011, from http://www.healthcare.gov
America’s Health Insurance Plans (AHIP). (2011, September 9). Rising Health Care Costs. Ahip.org. Retrieved October 22, 2013, from http://www.ahip.org/Issues/Rising-Health-Care-Costs.aspx The America’s Health Insurance Plans is identified as the national trade association and represents the health insurance industry.
(2011). Survey of health care consumers in the United States. Key findings, strategic implications. Retrieved from http://www. deloitte.com/assets/Dcom-United States/Local%20Assets/Documents/US_ CHS_2011ConsumerSurveyinUS_062111.pdf Hackworth, B.A.
Resultantly, rate of unemployment increased placing significant burden on the national economy. Rising costs and access to health care has become major concerns emphasizing introducing reforms. Spending on health care increased in the last decade and the gravity of situation was aggravated in the aftermath of economic recession. The cost of family exceeded single worker’s full minimum wages in some States like California. Companies had to pay more on health care for example General Motors spent less money on steel and more on health care.
One problem that is feeding into our healthcare deficiency is the spending on technology and prescription drugs (Kimbuende, Eric pg.1). For several years, spending on new medical technology and prescription drugs has been cited as a leading contributor to the increase in overall health spending (Kimbuende, Eric pg.1). “New drugs and technology increase healthcare costs because they generate consumer demand for intense costly services.” Even though the cost of healthcare related to technology and drugs have decreased over the pat couple of years, it is still an issue in our society (Kimbuende, Eric pg.1). Another thing that affects our healthcare costs is chronic disease (Kimbuende, Eric pg.1). Seventy-six percent of Medicare spending is on patients with five or more chronic dise... ... middle of paper ... ... pharmaceutical products and medical devices will help improve the nation’s healthcare cost (Hoppe, Hans Hermann pg.1).
Where will the money come from? Citizens, businesses, and the government are paying more and more for health care. Health care as a percent of the Gross Domestic Product (GDP) is growing and it is continuing to grow. After reviewing numerous reports and articles I will now try to recount some of the many multifaceted reasons for this growth and offer my thoughts on the subject. The Underlying Dynamics of Health Care Spending In their working paper, The Challenge of Financing Health Care in the Current Crisis: An Analysis Based on the OECD Data, Scherer & Devaux examine the variations of the health expenditure and the GDP ratio among different countries (2010).