Healthcare Costs in USA



Health Care Costs

Introduction

The increase in health care costs is observed throughout the country for the past few years. According to an estimate, in the year 2008, the costs of health care services in the United States have bypassed the amount of $2.3 trillion which is thrice the expenditures made in 1990 for health care. This consistent growth is of a prime concern for a number of enteritis including government, consumers and employers to keep pace with this trend. This paper aims to identify the contributions of political, economic, social and technological factors in the increasing costs of health care, in the United States (Altman, & Levitt, 2003).  

Discussion

Economic Factors

Inflation is the main contributor towards the increase occurring in the health care costs throughout the United States. Moreover, as recorded in the national data of the country, approximately 16 percent of GDP with a health care cost of $7,681 per person occurred in 2008. Health care expenditures because of the economic factors are increasing at a pace of 4.4 percent annually, which are expected to grow further because of increasing conditions of inflation (BlueCross and BlueShield of Minnesota, 2011).

Political Factors

Public spending on health care services is very low as compared to the private expenditures made by people themselves. Although, the federal governments have announced some medical coverage for the citizens of United States; however, much of the coverage is provided by private insurers who charge high premiums from people for the health care services. In addition to this, government also charges taxes from the citizens for the health care systems.

Technological Factors

Regardless of the comforts and ease in providing treatment, advanced technology is also a reason of the increasing health care costs in the United States. According to a report of Project Hope, in the year 1999, 39 percent of the health care costs comprises of the investments made in modern technology. To date, the expenditures on technology are constantly increasing an example of which can be taken from the payments Blue Cross Charges for some orthopedic and cardiovascular devices. The payments made for these devices increased by 19. 2 percent; and, with the advent of innovations, these costs are expected to grow more (Centers for Medicare and Medicaid Services, 2010).

Social Factors

The sudden increase in the costs of health care, in association with the overall economic downturn and increase in federal deficits, has led to stress on systems that are financing the health care. These systems include employer sponsored insurance coverage along with the federal insurance coverage. Because the employers have increased the premiums charged on health coverage people eventually have to pay more for health care services

Source: Centers for Medicare and Medicaid Services,

Factors

There are several factors, which determine the costs of health care, these include;

Prescription drugs and technology

The investments made in state-of the-art technology and prescription drugs can be included in the top of the list factors which lead to higher health care costs in the United ...