Free Essay

Hca/210 - Wk 7 - Rising Cost of Health Care Costs

In: Other Topics

Submitted By madickl
Words 608
Pages 3
The Driving Forces behind Rising Health Care Costs
Leslie Parvin
August 23, 2013
Jon Lasell

The Driving Forces behind Rising Health Care Costs Even though some experts disagree the high cost of health care is not a serious problem, the high and rising costs are a major issue, because of the high cost of new technologies and the aging population. Furthermore, the most expensive health care system in the world is right here in the United States, with the per capita health expenditures far above those in any other countries. However, to help the sky rocketing costs of health care, insurance companies came out with plans like HMO’s to help manage care organizations that provide comprehensive health care services for a predetermined annual fee per each person enrolled. The rising health care costs have become a huge concern for almost everyone, including the general public, federal and state governments, and employers who purchase health care for their employees. Hence, there are several reasons to explain the high and rising costs of health care. According to Bodenheimer (2005), he stated, “High health care costs might derive from factors outside the health sector rather than from characteristics of the health care system itself” (p. 849). One of these factors outside the health sector is the rising costs of health care for the aging population. According to the Pew Research Center (2010), as of January 1, 2011 approximately 10,000 Baby Boomers, who are the generation born between 1946 and 1964, will turn 65 every day for the next 19 years. Moreover, the high cost of technologic advances, in combination with poor cost-containment measures, is another factor in the high rise of health care costs. Because the use of new technologies is fairly unrestrained in the United States, the nation incurs higher health care costs (Bodenheimer, 2005, p. 932). HMOs can have a significant effect on the rising cost of health care. The website HMO Health Insurance website (2013) states, "HMO health insurance, or Health Maintenance Organization, is a network of doctors, hospitals, health care providers, and pharmacies that offer medical treatment at a reduced cost to members" (para. 2). More important, each provider that is part of the network work together to manage the cost and quality of the health care provided to its members. In fact, one of the several advantages to having an HMO plan is that members are able to enjoy low out-of-pocket costs in comparison to expensive, traditional health insurance plans. In conclusion, although some experts disagree that the high cost of health care is not a serious problem, the rising costs is a major issue for two main reasons. First, the high cost of health care for the aging population that will only grow through the next few decades. However, the most important is the high cost of technologies. Therefore, with the creation of HMO's to help reduce the high cost of health care, some progress has been made towards reducing the ever rising costs of health care in the United States.

Bodenheimer, T. (2005). High and rising care costs. Part 1: Seeking an explanation. Ann Intern Med. 2005;142(10):847-854. doi:10.7326/0003-4819-142-10-200505170-00010
Bodenheimer, T. (2005). High and rising care costs. Part 2: Technologic Innovation. Ann Intern Med. 2005;142(11):932-937. doi:10.7326/0003-4819-142-11-200506070-00012. (2013). Questions you may have about HMO health insurance. Retrieved from
Pew Research Center. (2010, December 29). Baby boomers retire. Retrieved from…...

Similar Documents

Premium Essay

Rising Health Care Cost

...Courtney Sheegog May. 8th, 2013 Hca/210 Rising Health Care Cost Assignment • What are some of the driving forces behind rising health care spending? One of the driving forces behind rising health care spending is Technology and Prescription drugs, chronic disease, aging of the population, Administrative costs. For several years, spending on new medical technology and prescription drugs has been the leading contributor to the increase in overall health spending. (Healthcare reform .Gov. ,2011). Longer life spans, and greater prevalence of chronic illnesses. This has placed tremendous demands on the health care system, particularly an increased need for treatment of ongoing illnesses and long-term care services such as nursing homes; it is estimated that health care costs for chronic disease treatment account for over 75% of national health expenditures (Kaiser, 2010). How do HMOs affect health care costs? HMO's often emphasize their ability to contain costs through oversight of physicians' decisions or by implementation of a capped payment scheme that aligns physicians' incentives with those of the healthcare plan. HMO's do have lower hospitalization rates and shorter hospital stays and use fewer expensive tests and procedures than traditional health-care providers. Some people also argue that the increasing use of managed care generates positive externalities that benefit consumers enrolled in non-HMO health plans. This argument typically invokes some notion of......

Words: 316 - Pages: 2

Premium Essay

Rising Cost of Health Care

...The Rising Cost of Health Care: Effects on Access to Care The rising cost of health care is a trend that is negatively influencing access to health care. According to our course textbook, Policy and Politics in Nursing and Health Care, over 46 million Americans did not have health coverage in 2008, and 25 million American adults were underinsured (p. 124-125). For most people, this can be attributed to the high cost of premiums, co-pays, and deductibles. The purpose of this paper is to discuss the history of the trend of rising health care costs, the influence rising costs have on the delivery of health care, how rising costs create disparities in health care, and two ways that nurses can address inadequate access to health care. Access Trend In the U.S., there are more people today than ever before, unable to access quality health care. “Access is the ability to obtain needed, affordable, convenient, acceptable, and effective health care in a timely fashion” (Mason, Leavitt, & Chaffee, 2012, p. 124). This lack of access is attributable to the high cost of health care, which makes it unaffordable for the working poor, and those working for small businesses, to pay for adequate health care. There is an inverse relationship between the cost of health care and good patient outcomes. It is estimated that $7,000 per person, including children, is spent on health care in the U.S., yet the country does not rank in the top 15 of industrialized countries in terms of good......

Words: 1289 - Pages: 6

Premium Essay

Health Care Cost

...Health Cost The Recession that ended in 2009 caused the National Health spending to see an increase in low rates. With the Affordable Care Act taking effect in 2014 there are concerns that the slowdowns from the economic factors and change in the health system will affect the health cost The recession of 2007-2009 has the Nation focus on the slowdown in health spending because of structural change that could lead to measured growth in the future. We can assume health spending development to bounce back up in the future as the economy recovers. An example of operational changes is when health spending is growing more slowly than what would be anticipated. We would see a persistence of traditionally low rates of growth even as the economy returns to full employment. (Kaiser 2013) Employee sponsored insurance, Medicare, and Medicaid programs all effects the health spending growth. In 2014 the national cost for subsides provided to low and middle income people buying coverage through new health insurance exchanges. The national budget developments future increase in health spending based on Medicaid and Medicare generally low rates of growth of health spending in recent years. Most importantly if we believe health spending growth will remain low, we may be content by letting current cost containment strategies play out. According to (Kaiser 2013) the last four health spending progress has been at its lowest levels in five decades. There has been discussion on how the......

Words: 355 - Pages: 2

Premium Essay

Health Care Cost

...Zion Rebecca Apphia English 101 Exploratory Essay Feb 28, 2014 Care Cost I know a man that died because he couldn’t afford the standard of care. Why is the cost of health care so high and expensive? It has cost many people to refuse to go for checkup or when sick refused to be seen by a doctor because they can’t afford the bills that will come later. Should the cost of care be reduce or remained where it is? Yes, it should be reduce because so many people are dying from chronic diseases. A freelance cameraman's appendix ruptured and by the time he was admitted to surgery, it was too late. A self-employed mother of two is found dead in bed from undiagnosed heart disease. A 26-year-old aspiring fashion designer collapsed in her bathroom after feeling unusually fatigued for days. What all three of these people have in common is that they experienced symptoms, but didn't seek care because they were uninsured and they worried about the hospital expense, according to their families. All three died. Research released this week in the American Journal of Public Health estimates that 45,000 deaths per year in the United States are associated with the lack of health insurance. If a person is uninsured, "it means you're at mortal risk," said one of the authors, Dr. David Hammerstein, an associate professor of medicine at Harvard Medical School. The researchers examined government health surveys from more than 9,000 people aged 17 to 64, taken from 1986-1994, and then......

Words: 1061 - Pages: 5

Premium Essay

Rising Cost of Healthcare

...Rising Cost of Health Care April Scoles Instructor LeJarnaro Barnes March 9, 2014 The United States has the most expensive health care system in the world. It dates all the way back to World War II. The United States and Canada do not even compare to each other, in health care, like they once did. The problem lies within the major stakeholders of the health care system, and what they are willing to change to make it less expensive for patients. This paper will discuss the history, compare and contrast United States health care system to Canada, how the stake holders’ role affect these rising costs and it will discuss recommendations suggested by the authors of “Redefining Health Care.” First, we should discuss the major problem of our health care system. This happens to be the price. According to an article written in 2010, 17% of our Gross Domestic Product (GDP) was spent on health care. It is supposed to increase by 18% by the year 2018 (Crissy, Larimer, Furnas, Spencer, 2010). What is Gross Domestic Product, you ask? Well, it is defined as “the total market values of goods and services produced by workers and capital within a nation’s border during a given period of time” (English Dictionary online). This more or less means that the cost of health care is rising, and the coverage is declining. The out-of-pocket expenses are too much for patients to pay. This in turn makes patients choose to drop their coverage, because it is too expensive, in the first place. If......

Words: 1823 - Pages: 8

Premium Essay

The Role of Technology in Rising Health Care Costs. What Should or Shouldn’t Be Done.

...Technology in Rising Health Care Costs. What should or shouldn’t be done. Neha Para, MPH Student 5453-001 US Health Care System University of Oklahoma Health Sciences Center December 8, 2010 Abstract Health care costs are a longstanding concern to policymakers. For years, health care spending has been rising faster than the rate of economic growth, raising the question of what factors are responsible for rising health care costs. This paper explores published articles that report results from research conducted on technological innovations in health care and its relation to rising health care costs. The cost increases have a significant effect on households, businesses, and government programs. Health care experts indicates the development and diffusion of medical technology as primary factors in explaining the persistent difference between health spending and overall economic growth, with some arguing that new medical technology may account for about one-half or more of real long-term spending growth. Rising health care expenditures lead to the question of whether we are getting value for the money we spend. On an average, increases in medical spending as a result of advances in medical care have provided reasonable value. An alternative viewpoint holds that although new technologies represent medical advances, they are prone to overuse and thereby excess cost. Most of the suggestions to slow the growth in new medical technology in the U.S. focus on......

Words: 5135 - Pages: 21

Premium Essay

Health Care Costs Article

...While health spending has been growing, it is growing at a stunted rate. The Office of the Actuary (OACT) in the Centers for Medicare and Medicaid Services reports that national health spending grew by 3.9% each year from 2009 to 2011, the lowest rate of growth since the federal government began keeping such statistics in 1960 (The Kaiser Initiative on Health Reform and Private, 2013). By 2012 spending increased only another .4% to 4.3% increase. The question(s) remain: what are the causes in this resulted stunt in growth? Several factors explain, though do not completely quantify the reasons: 1. Economic Downturn and Inflation – consumers spend less on health care as their income lags and individuals cut back on services and goods. 2. Growth in Gross Domestic Product (GDP) – recession periods lead to organizations providing less health care benefits; fewer people employed and insured. Despite the fact that the aforementioned variables explain over 85% of the disparity in health spending growth rates from 1965 through 2011 (The Kaiser Initiative on Health Reform and Private) the effects are still cumulated in a “lagged” response, meaning that the changes are slow to develop. Explanations are provided to better ascertain the reasons behind these lagged responses that include: * Most people are insured, and insurance has an economically protective effect in shielding people from the full cost of health care. * Consumers may perceive health care as a......

Words: 552 - Pages: 3

Premium Essay

Obesity and Health Care Costs

...B. Johnson Southern New Hampshire University Discrimination Against the Obese in the Workplace In the United States, there has been a substantial increase in obesity. According to the Centers for Disease Control and Prevention, one in every American adult is now considered obese. Obese is defined as having a body mass index (BMI) of 30 or higher. Obesity can contribute to diabetes, heart disease, stroke or certain kinds of cancer. What effect does obesity have in the workplace and how can we fight it? What is the Correlation between Obesity and Health Care Costs The CDC and the National Institute of Health (NIH) indicate that obesity contributes to heart disease, stroke, diabetes, and some types of cancer, all of which are leading causes of preventable death. In 2008, medical costs associated with obesity were over $147 million. 6 to 10% of U.S. health care spending is contributed to obesity. The health costs are 30% higher than normal weight persons. Is Obesity a Protected Class When the Americans with Disabilities Act was first passed, the EEOC viewed severe or morbid obesity as impairment under the Act, but not general obesity itself. But, this has changed under the Americans with Disabilities Act Amendments Act. In 2013, the American Medical Association classified obesity as a medical disease. While this classification does not affect the ADA, it could be perceived that obesity is a protected class. How should obesity be addressed in the......

Words: 678 - Pages: 3

Premium Essay

Hca/210 Proposal for a New Health Care System

...Proposal for a New Health Care System XXXXX HCA/210 Proposal for a New Health Care System The government or insurance companies are not entirely responsible of reducing the expenditures on health care. Health care is the responsibility of the entire nation, in which everybody should contribute to change the system, and the quality of their lives making changes for their own benefit. People should have a better education, alimentation, and access to the basic health care, if these could be possible the country could have a better life status. Parents, relatives, teachers, nurses, doctors, insurance companies, government and many more institutions could contribute to this change providing valuable information to the people helping them to obtain a better quality of life. With this object in mind, the entire society will make a difference in the health care system, as well as improve the quality of life for everybody. My proposal includes four changes needed to restructure the system and offer a better quality of life to everybody. These changes are standardize the salaries of specialist, physicians, and medical personnel; cut some funds in some areas of the system; implement educational programs in schools, jobs, and medical facilities; and the implementation of a system in which every individual is covered by some form of health insurance. Health care needs a better structure in its system, standardizing the payment of the specialist and......

Words: 805 - Pages: 4

Premium Essay

Rising of Healthcare Cost

...The Rising of Healthcare Costs Over the past 30 years, the American healthcare system has been afflicted by the continuous rise of healthcare cost. One of the reasons for the increase in healthcare cost is that in today’s society people are living longer lives than they did in the past and the prevalence rates of contracting chronic diseases and developing life threatening injuries are causing the United States healthcare system to suffer a financial crisis. Another reason for the rise in healthcare cost includes but is not limited to expensive hospital visits, complex procedures, and cost of prescriptions. Consumers find several ways to reduce healthcare cost for the insured and uninsured individuals. Some patients questioned where most of the money goes when they pay premiums for health treatments. There are some occurring solutions to the ever-rising cost of healthcare. Decisions you make can determine how much you pay for healthcare. Review your health insurance plan, you can do this by getting involved in your open enrollment, there you may find better or more affordable options available that may fit your needs. If there is no need or emergency in going to see your doctor other than for an annual checkup, getting a different health plan will be beneficial. If your employer subsidizes your care versus that of your dependents, it might make sense to have the dependents get their coverage on the open market, if they only subsidize the employee’s coverage. Other......

Words: 766 - Pages: 4

Premium Essay

Health Care Cost

...Members FROM: DATE: SUBJECT: Rising Health Care Cost Health care in America is in crisis. Health care costs are skyrocketing. This problem is not new, nor is the recognition of it. The size, complexity, and political clout of the health care industry political distrust, particularly among people who are currently well insured and geographic diversity in spending, coverage, and delivery systems have frustrated past reforms. Furthermore, health reform means income redistribution among payers and across service providers. Health insurance premiums have doubled in the last 8 years, rising 3.7 times faster than wages in the past 8 years, and increasing co pays and deductibles threaten access to care.i_ The medical expenditure rate is now increasing more rapidly than ever, and control of medical costs has reemerged as a major national imperative. Failure to solve this problem has resulted in most of the other critical defects in the health care system. Least investment in primary prevention and public health: America faces epidemics of obesity and chronic diseases as well as new threats like bioterrorism. Yet despite all of this less than 4 cents of every health care dollar is spent on prevention and public health._iii Many Americans are uninsured because of rising insurance costs: Over 45 million Americans lack health insurance.iv_ Even those with health insurance are struggling to cope with soaring medical costs. Increased healthcare costs are making it difficult for......

Words: 347 - Pages: 2

Premium Essay

Funding the Rising Cost of Us Healthcare

...Funding the Rising Cost of U.S. Health Care. BY Vilando. HSA500 November 15, 2015 Funding the Rising Cost of U.S. Health Care. The United States continues to spend significantly more on health care than any country in the world, however, even though with this statistics the U.S has a lot of uninsured and does not have the healthiest citizens. In this paper, opinions will be given on the rising cost of overall’s health care’s impact in the U.S economy, followed by a comparising and contrasting factors impacted by the new health care act, pros and cons of using the private insurance rather than using the new health care reforms and the cost associated with its implementation and access to different groups will also be discussed. Rising Cost of Health Care The cost of the U.S health care system is higher than any country in the world. Its efficiency is also under serious scrutiny. If it was not an emergency, most physicians would require insurance verification. Therefore patients will be delayed of treatment. Moreover, the health care system in the U.S should be redesigned in terms of prevention rather than treatment with people who are already sick. Insurance should not go higher for people that have pre-existing conditions or with more health risk. Also the emergence and new discoveries in the field of...

Words: 4666 - Pages: 19

Premium Essay

Reducing Health Care Cost

...CONTROLLING HEALTH CARE COSTS WHILE PROMOTING THE BEST POSSIBLE HEALTH OUTCOMES American College of Physicians A White Paper 2009 Controlling Health Care Costs While Promoting the Best Possible Health Outcomes Summary of Position Paper Approved by the ACP Board of Regents, September 2009 What are the Major Drivers of Health Care Costs? Major drivers of health care costs include: inappropriate utilization especially of advanced medical technology, lack of patient involvement in decision-making, payment system distortions that encourage over-use, high prices for health care services, a health care workforce that is not aligned with national needs, excessive administrative costs, medical liability and defensive medicine, more Americans with declining health status and chronic disease, and demographic changes including an increase in elderly persons. This paper addresses each of these drivers of health care costs and provides recommendations for controlling them. Why Do We Need to Control Health Care Costs? Improvements in health care have the ability to provide opportunities for all people to live better, healthier lives. However, the rate of increase in U.S. spending on health care continues to exceed economic growth at an unsustainable pace. The rate of growth in health care spending is the single most important factor undermining the nation’s long-term fiscal condition. Why Should Controlling Health Care Costs be Linked to Promoting Good Health Outcomes? Increasing......

Words: 26901 - Pages: 108

Premium Essay

Are Rising Food Costs Related to Rising Fuel Costs

...Are Rising Food Costs Related to Rising Fuel Costs? ECO 550 Dr. Isley Mary Thomas March 19, 2011 Are the rising food costs related to rising fuel costs? Not only does the rising costs of fuel cause an increase in prices, but the use of some crops to make biofuels also drives the cost of food up. High crude oil prices have fueled interest in finding alternative energy sources and reducing dependency on import oil supplies. The emergence of biofuels has given rise to an alternative market for a number of agriculture commodities. Fossil fuel is a general term for buried combustible geologic deposits of organic materials formed from decayed plants and animals that have been converted to crude oil, coal, natural gas, or heavy oils by exposure to heat and pressure in the earth’s crust over hundreds of millions of years. The burning of these fossil fuels is the largest source of emissions of carbon dioxide which is one of the greenhouse gases that contribute to global warming. Biofuels are transportation fuels like ethanol and biodiesel that are made from biomass materials. The fuels are usually blended with petroleum fuels, but can also be used alone. Using ethanol or biodiesel means we don’t burn quite as much fossil fuel. ......

Words: 2657 - Pages: 11

Premium Essay

The Cost and Spending of Health Care: Why Universal Health Care

...THE COST AND SPENDING OF HEALTH CARE: Why Universal Health Care 06/18/2012 THE COST AND SPENDING OF HEALTH CARE: Why Universal Health Care Health care cost and spending is a major concern for our society. Many governments around the world have established universal health care, which takes the burden of health care expenses off of private businesses or individuals through pooling of financial risk. There are a variety of arguments for universal health care and related health policies. Health care is an important part of health systems and therefore it often accounts for one of the largest areas of spending for both governments and individuals all over the world. For example, medical debt is now a leading cause of personal bankruptcy in the United States. A policy should be created to help lower the cost of health care. One way that would help improve health care spending is to create a universal health care to make sure everyone is covered. By creating a universal health care, it will help decrease the number of lobbyers which in turn will cut government funding to those special interest groups. There are 45 million Americans uninsured and according to CNN report 45,000 Americans die each year due to lack of affordable health care. So by creating a universal health care, we can be sure to expect to see a longer lifespan for our population as is the case in countries that have a universal health care. Since this type of health care would be......

Words: 578 - Pages: 3

Business Next – 2018-12-01 | 4D Silk Fiber Eyelash Mascara Extension Makeup Black Waterproof Kit Eye-Lashes_^ | Ricambi E Accessori Per Sfigmomanometro 1/2 Tubi - Bracciale Monopalla Rubinetto