Here Are Reasons For The Skyrocketing Medical Care Costs
4 min read
According to the Centers for Medicare and Medicaid Services (CMS), by 1970, overall expenditure on health in the US was $74.1 billion. By 2019, the figure has skyrocketed to about $3.8 trillion. The outbreak of the COVID-19 pandemic at the beginning of 2020 made expenditure on health services drop by 8.9 percent.
This was mainly because of social distancing and other people in the country canceling their elective procedures. Spending in the health sector is expected to grow at an average of 5.4 percent, potentially reaching $6.2 trillion in 2028. Below are some reasons to explain the skyrocketing medical care costs in the US.
Medical care providers demand higher prices.
The healthcare system today in the US is full of partnerships and merges, according to the Center for Studying Health System Change. An increase in the consolidation of medical services providers has led to a decrease in competition in the market. This usually encourages lower prices, innovation, and enhanced productivity.
With no competition, the monopolies, including insurers and service providers, are better positioned to hike prices. The American Journal of Managed Care study discovered that hospitals in areas without competition charge considerably more than those in competitive markets. Opting for medical health sharing plans online is a cheaper solution for people to get the services they need.
Payment for services rendered than quality
The pay for medical service providers depends on the services they offer instead of quality. This encourages over-treatment and redundant testing on some patients with questionable chances of getting better. Additionally, the medical system lacks integration. It means people can’t access the care they need when necessary in a friendly manner to get good value for money.
When it comes to costs, integrated health allows management, providers, and support teams to communicate with each other regarding a patient’s care. Alternatively, a system lacking integration might make the patients receive duplicate tests for procedures more than they need.
National population is becoming more unhealthy.
According to the National Center for Biotechnology Information (NCBI), about half the US population has a chronic ailment LIKE heart disease, diabetes, or asthma. All these conditions drive up medical care costs. In fact, 85 percent of medical care costs are for chronic ailments.
Additionally, according to the Center for Disease Control and Prevention, more than 40 percent of adults in the US are overweight. This encourages chronic diseases that hike medical care costs. The population in the country is becoming fatter and sicker, making average medical insurance go high.
Latest tech comes at a higher price.
Advancement in medical tech improves health and extends life. However, it also contributes significantly to increased costs in healthcare. People usually associate advanced technology and the latest procedures with quality care. However, there’s no proof of their effectiveness. Assuming this makes doctors and patients demand newer treatment options and matching tech.
Limited access to knowledge about medical care and related costs
There’s a lot of information online without a better understanding of treatment options and associated costs. People take a long time to get access to information regarding ineffective and potentially harmful treatments.
Changing how medical service providers do their work or patient demands are usually uncertain. In other instances, some hospitals don’t easily avail prices of their services. Some that legally require disclosure to the public is written in codes that an ordinary person can’t understand.
Defensive medicine
Sometimes, medical services providers prescribe inappropriate treatment or tests, fearing lawsuits. Costs from such treatments have the potential to add up in the long run. A study by JAMA approximates about $46 billion annually goes to waste for such defensive medicine.
The regulatory system today supports fee-for-service in the healthcare industry for payment and delivery. Fearing that medical care providers withhold essential services to stay below their budget is a significant concern compared to the overutilization of services.
Effect of high medical costs on Americans
Failing to pay medical bills has a significant impact on families. About 26 percent of people say they have a family member facing the problem of paying medical bills. And about 12 percent of Americans have faced problems with medical bills in their families. People facing chronic medical issues are finding it hard to get urgent care.
Other effects include:
- Debates about the rising costs dominating public debate
- Adults with insurance failing to afford routine costs
- People failing to fill prescriptions
Paying medical bills is a huge problem across the US. Opting for a shared medical payment plan is a great idea to lower your medical expenses. Fortunately, finding a great plan is easier online for an affordable way to healthy living.
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