- The Escalating Costs of Health Care
- The health cost has increased in a tremendous way for several years in the United States. In-order to have a stable economy, the government of America ought to control the ever-rising health cost. The major priority that everyone ought to take is to help in stemming the increase in health costs. The State being one the leading industrialized countries face a strong challenge in controlling the rising health costs. Even though America has an advantage of having many opportunities of investment, the rising costs of health services slow down the countries economic growth. Causes of rise in health care can be controllable by employing considerable measures from the government (Orszag, 2011).
- Employers in the United States spend a lot of billion dollars per year mostly on health insurance for their own and their loved ones. Records indicate that on 2008, the amount of money the State spent on health expenses was 2.3 trillion dollars (Orszag, 2011). This amount of expenditure raised an alarm of taking serious steps in controlling health costs. Comparing this amount with the one that the government spent on 1990, there is a huge difference (Orszag, 2011). In 1990, The US government spent 714 billion dollars on health expenses (Orszag, 2011). Ten years back, which is on 1980, the government spent 253 billion dollars on health expenses annually (Orszag, 2011). The above figures the rise of health costs for the past several years (Hacker, 2007).
- In 2008, the annual spending per resident in United States was 7681, according to the estimates made by the government (Hacker, 2007). During the same year, the Gross Domestic Product was 16.2% and this indicated that United State was spending much on health care (Hacker, 2007). In addition to this, from the year 1999, the premiums that employees pay through sponsored coverage have increased by 131 percent (Hacker, 2007). The increase of the health costs has been employing cost burdens on employees. The private health insurance brokers have created a big role in escalating the health costs. Insurance programmes that the State employs also play a role in increasing the health care costs (Hacker, 2007).
- Technology is one of the major issues that contribute to escalating health costs. The modification of medical technology and the identification of new drugs lead in increase of costs. Analysts’ state that the introduction of art-technology contributes to the increased health costs because of increase in the development cost. Another issue that contributes to the increase of healthy costs is the issue of preventing major diseases. The States expenditure indicates that treating the chronic diseases attributes to 75% of the overhaul governments expense on health matters (Orszag, 2011).
- The more one gets old, the high the health expenses on requires. Caring for the aged people has increased the cost of health care in the United States. The beginning of baby boomers to qualify with the Medicare certificate has also raised the cost of health care. The government has to pass many of the Medicare costs to the public and this exerts economic burden to in people’s lives. Employing workers in order to assist the old also plays a major role in increasing the health costs. The other major issue to consider when reducing health costs is reducing administrative expenses. The government of America estimates that 7% of the expenses of health care are for administrative costs (Weatherly, 2004). Examples of administrative costs are marketing and paying of basic requirements (Weatherly, 2004).
- The States’ government ought to apply major proposals that can help in containing the increase in health costs. The government ought to put much effort in improving information technology, in order to regulate the costs of health care. Use of electronic medical records is one way of reducing the overhead costs and this loosens the burden of the public. The government has a role of improving the work done by the medical staff. Fast and efficient care of patient reduces wasting of time. In order to regulate these costs, the government ought to withdraw unnecessary health care. Provision of unnecessary care attributes to 30% of health money lost (Weatherly, 2004). Eradicating these practices may play a part in reducing the health costs.
- The government ought to regulate the fees paid during compensation. For example, fees paid to medical officers should be of an advantage to the health sector but not favor the volume of care. The government ought to introduce measures of preventing chronic diseases that cost a lot of money while treating. The government ought to involve the public in health activities. Increase of transparency in the health sector will prevent the embezzlements of funds. The important sector to regulate is altering the tax rate for employees. The government ought to pass tax law that favors those employees who have more expenses on their health plan. In order to regulate the escalating health costs, the government ought to participate fully in controlling these costs. Comprehensive reform ought to take place in the health sector so that there can be a regulation on health cost in favor of the citizens (Weatherly, 2004).
- References
- Hacker, J. (2007). The Health Care for American plan. New Labor Forum (Routledge). 16 (3/4), p30-40, 11p, Retrieved from EBSCOhost.
- Orszag, P. R.(2011). How Health Care Can Safe Or Sink America. Foreign Affairs, 90(4), p42- 56, 15p. Retrieved from EBSCOhost.
- Weatherly, L. A. (2004).The rising cost of health care: Strategic and societal. considerations for HRMagazine, 49(9), p1-10, 10p. Retrieved from EBSCOhost.
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