Health Care expenditure is rising
overtime. According to CMS (Centers for Medicare and Medicaid Services), costs
have risen from 27 billion in 1960 to almost 2.6 trillion in 2010.1
The Health Care cost rise is attributed to some hard factors such as:
Obesity: The change in diet and lifestyle had a big impact on
Health Care. People are eating more and food nutritional value has declined
over time. People are also exercising less, because of the busy lifestyle and
this is contributing to an obesity epidemic that adds to health costs.
Uninsured population: So many Americans cannot afford health
insurance. Also, illegal immigrants do not have health insurance. According to
the law, both groups have to be treated cost free in case of emergencies, if
the hospital receives federal money. To keep a solid bottom line, hospitals are
raising their costs in order to balance out these unpaid services.
HHS (Health and Human Services, Medicare and Medicaid recipients):
The number of Medicare recipients is increasing due to the aging Baby Boomer
population. The number of Medicaid recipients is increasing as well, due to the
economic situation.
Some soft factors that contribute to the rising Health Care
cost are:
New equipment:
Hospitals and private clinics are always looking for new technology and
equipment to compete with other facilities and provide the latest technology.
Malpractice insurance
and suits: Health Care providers have to pay premiums for malpractice
insurance. Also, they have to pay for any malpractice suit within the facility.
People using the ER
for non-emergency situations: Some people go to the Emergency Room for
minor issues that can be taken care of at a family care facility.
Health Care regulations:
New Health Care regulations such as the new Health Care Reform pushes Health
Care providers to raise the cost of service in order to adjust for the new
regulations.
According to CMS, the cost is
projected to reach 4.6 trillion by 2020. 2
One question I have is this: can you measure how many uninsured individuals there are in the United States? If we include illegal aliens, how can we really know how many people in the US do not have insurance?
ReplyDeleteWhat do you think will happen to this system after most of the Baby Boomer population has passed away? Will it restabilize do you think or will new factors have come in?
Also, I completely agree that one factor influencing this system is the number of individuals who use the ER for non-emergency reasons. One of my roommates and another close friend both work in RMH's ER and they see a lot of patients who come in with colds or similar ailments. However, many of these patients are also in the category of those without health insurance. That has a huge impact on the cost of everyone else's insurance and Medicare, etc.
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