HEALTH CARE COSTS

Health Care Costs

Health Care Costs

Introduction

Health expenditure reached U.S. $ 2.5 billion in 2009 and spent 17.6% of gross domestic product (GDP). In 2019, health spending is expected to pass $ 4,500,000,000,000 and 19.6 percent of GDP. U.S. has spent more than $ 8,000 per person on health each year, more than any other developed country. It has been said that “80% of all health care costs are incurred by 20% of the populace. Health expenditures are growing two to three times the rate of inflation, putting quality medical care increasingly out of reach of American families. Here below, we will see the government intervention regarding the Healthcare cost reduction in order to give relief to the folks (C.US, 2008).

Health Care Costs

A concrete consideration of the important elements that have influenced the recent expansion in US health care is required to properly manage the health-care expenses. Despite the fact, that there is no conclusive agreement as to what these factors might be, some of the most prominent amongst them are discussed below:

Technology and Prescription drugs - One of the most eminent and prevailing factor accountable for the augmentation in the health care expenditure of the US is the up-surging medical technology and prescription drugs. According to the various researchers, the access of costlier and up-to-mark technological advancements in the field of medicine instigates health care expenditures not only because the expansion costs of these products must be recovered by industry but also because they engender purchaser demand for more strong, expensive services even if they are not essentially lucrative.

Chronic diseases - an innate ability of interest to the United States has changed dramatically over the past 100 with a long lifespan and costly incidence of chronic diseases. Since this requires greater attention to fitness of the case, advanced flight, especially for current and viable treatment centers, for example, consider the appropriateness of care that the percentage of chronic diseases represents more than 75% the fitness value across the country.

An aging population - cost of medical care increases with age and as baby boomers now in middle age, some people are very concerned by the finding that treatment of this population to develop an increase in this phenomenon will continue as the baby boom. "Offspring are eligible for medical assistance in 2011 and costs are transferred to the public. However, experts agree that aging increases slightly higher than the cost of expanding health adjustment.

Administrative costs - estimated at not less than 7% of care costs are administrative costs of fitness, this part is much worse in the program, Medicare (<2%), which was owned by central government. Some argue that the above procedure leads to a mixed public and private sectors and functions, passing the costs of care for people. As health care more affordable without limiting access to medical care? Payment Options - reduced rate: All hospitals, public and private, can reduce health care costs financed by the federal government, as well as clinics and medical ...