Rising Cost Of Immunotherapy / Biotechnology And Effect On Us Health System
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Challenge to US Healthcare:
Rising Cost of Immunotherapy/Biotechnology and Effect on US Health System
HCAD 620, Section 9042
November 16, 2014
Introduction: Challenge to US Healthcare
There are many challenges to the US healthcare with the recent healthcare reform and changes in the healthcare financial environment have put a spot light on the issues that many have overlooked for a time. In the mid-80s, it was predicted that there would be an excess of physicians, an increased number of older population, increased amount of people who are enrolled in the managed care plans, reformed healthcare benefits, new technologies, increased in services for for-profit healthcare deliver, escalating cost of healthcare, and limited role of government at the federal level. All these issues except the excess of physicians have turned out to have an impact on the current health policy. A number of these issues continue to be a challenge for the policymakers while new or previously unresolved issues also pose challenges to the US Healthcare. With recent advances in medical technology and patient management pathways, both providers and payers alike, US healthcare system has struggle to keep current with the advances. Although the changes are for the better whether it is robotic surgery, genetic testing, biotechnology or immunotherapy drugs, the financial issue implications are significant.
The Key Issues with US Healthcare
Rising healthcare costs has been a major US healthcare issue in the recent memory. In 2012, 17.7 percent of GDP was spent on healthcare cost. The US government has tried to restrain Medicare and Medicaid spendings, but it is unlikely that there will be an overall limit placed on healthcare spending for the for...
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...the Medicare Advantage program (Orentlicher, 2011). However, the ACA cost-saving measures do not address cost inflation which is the fundamental driver of healthcare cost in the US healthcare system. US healthcare system is considered by many as to be excessive care at high prices. With the introduction of more effective care such as immunotherapy, although the initial cost is high, overall cost and potential savings are vast.
Overall, the new immunotherapy drugs and new expansive treatment pathways are somewhat controversial in a sense when we are at a time of cost saving and the drugs are incredibly expansive. But in-turn, the benefit to patients and overall cost is the advantage they have over the traditional care. Further studies for the cost benefit analysis and how the upfront cost of these drugs can be contained to improve cost benefit is merited.