The Costs of Healthcare!
The health insurance industry has affected the costs of health care by allowing certain types of insurance programs to fit specific needs of individuals, communities, and other groups needing health insurance (Sultz, Young, 2006). In the text, health care USA, it was said that,” self-insurance offers significant advantages to employers…employers can avoid certain additional administrative and other charges made by commercial carriers, such as fees for writing and activating policies”(Sultz,Young,2006). A plan like this can help raised the cost of health care because like many other insurance plans this one helps to put a strain on the health insurance industry that in turn puts a strain on health care (Sultz, Young, 2006). Now there has been established within the health insurance industry “medical care insurance that can provide coverage for expected and unexpected illness or injuries, as well as provide a routine use of the health care system” (Sultz, Young, 2006).
Patients, individual providers along with health care organizations and insurers all are affected by the rising costs of health care because of the costs it takes to run the health insurance industry. Each party involve is out to make sure that they receive the coverage that is needed. There are so many insurance programs because there are a variety of coverage needs with in communities, workplaces, and other places of concern. And when looking at the insurance commercials one can see the rising competition among insurance carriers and providers. While one may provide more coverage in one area, it also lacks coverage in another. And this puts a strain on consumers because they have to shop around for full coverage insurance. Moreover, insurance providers try to compete with each other by offering more coverage’s without breaking the bank. One commercial that comes to mind is the Progressive insurance commercial. In this commercial it is always promised that one can come in and create a coverage that is best for him or her without breaking the bank. Now I know that it is car insurance commercial but never the less, health insurance companies like this commercial are trying to find ways to provide semi-full coverage’s for consumers without neglecting their own needs.
Advances in medical care technology is raising health care costs by” increasing absolute availability of treatments and diagnostic techniques that did not exist previously” (Sultz, Young, 2006).In other words, advances in medical care technology causes health care costs to rise because it is always developing new techniques, procedures and treatments that can help cure diseases and other illness that where labeled as incurable. And with these new technologies early diagnostic of diseases can now be detected before it grows out of hand. So as Americans age they will be sure to look for ways to preserve their lives in order to ensure long life. Therefore, they will turn to new development, techniques, and procedures. And those who cannot afford it because of little or no insurance will look to the U.S. health care system for support. And this in turn will place more strain on the health care system and increase its costs.
Changes within the U.S. demographics are causing health care costs to rise because of the accommodations that are being required to care for a variety of people, cultures and beliefs. As the U.S. populations increase along with it will be an increase for proper health care. Because according to the text, Health Care USA, “growth in the number of older adults is another major factor in rising health care expenditures” (Sultz, Young, 2006). It was mentioned,” that the number of individuals over 65 years has increased by a factor of 11 and will continue to increase in the future” (Sultz, Young, 2006). Moreover it was said,” that there will be significant growth within the age bracket of 45 to 65 years and that this age group will use more medical services than do adults in the immediately younger age bracket” (Sultz, Young, 2006).So as the population increases we will see more need for medical treatments and treatments which in turn will cause health care costs to rise.
The government supports for health care has contributed to the rising costs of health care by “reimbursing largely on a piecework, fee-for-service, retrospective basis” (Sultz, Young, 2006). I believe that there are many government funded programs that are so contingent upon one another until they to causes a rise in health care costs as well. And I believe that consumers are expecting the government and all entities involved with the health care system to have their best interest at heart. Health care was first started to serve, provide for, and protect consumers and somehow health care has deviated from this original goal. It is still protecting consumers however it is constantly changing because of so many entities involved with health care.
Sultz, A. H., & Young, M. K. (2006). Health care USA. Massachusetts: Jones and