The U.S. health care expenditure in 2018 was approximately $3.65 trillion, an amount higher than the GDP of the U.K, Canada, Spain, Brazil and Mexico, according to Fortune insights. With the current inflation rate at 1.6% and wage growth below 4%, medical care costs will cover 19.4% of the country’s GDP, by 2027. Prescription drug expenses keep increasing at 3.3% each year. The rise is not due to increased use, but higher prices, especially for new drugs. Although most new medicines are no better than existing treatments, patients will be spending more on prescriptions, and face challenges accessing health care services.
Health Insurance Premiums On The Rise
Government policy and lifestyle changes are key reasons why there is a constant increase in health insurance premium costs. Additionally, insurance programs provided by the government have contributed to the increasing demand for better health care, leading to high health treatment prices. The effects of high medical insurance rates also contribute to a 2.3% decrease in wages because most workers settle premiums out of their income. Many people choose to work full-time and surrender other benefits to retain medical coverage as a way of preventing medical bankruptcy. Nonetheless, paying your monthly premiums on time is critical, as better management of medical-related bills will get your credit back on track.
Multiple Chronic Diseases A Key Driver To High Costs
Studies reveal that current methods of treating chronic disorders increase the unnecessary financial burden on medical systems and individuals around the world. In most cases, patients who suffer from long-term diseases such as cancer, arthritis, hypertension, diabetes and strokes may benefit from insurance coverage. However, most insurance plans cover medical check-ups or visits to general physicians. Lack of coverage for prescribed medication for multiple chronic diseases results in high out-of-pocket expenses. Skipping or avoiding treatment is a step most people take out of fear they will pay high bills for care. As a result, the medical procedures required later on is always more costly.
Technology Increasing Costs In Medical Treatment
Increasing chronic health problems and a rise in lifestyle-related complications play a significant role in the use of advanced medical technologies. Most medical practitioners and patients demand the use of the latest innovations to treat different health conditions. This move paves the way for costly-patented medications that are generic, cheap and affordable for the average consumer. Discouraging the use of innovative technologies would seem perfect to reduce costs, but on the other hand, it would appear immoral to most patients and doctors. As much as technology increases annual health costs by 40-50%, patients benefit from advanced surgical procedures, heart disease care, reasonable cancer treatment, antibiotics and vaccines.
The factors mentioned above have a role in the rising costs of health services, but none is exclusively responsible. Technology increases the costs of medical services, as do other aspects like chronic diseases and high insurance premiums. Although employer-sponsored wellness plans and dependence on technology are solutions believed to help reduce costs, leading a healthy lifestyle and going for routine check-ups are essential. By doing so, you prevent the development of chronic diseases, which results in expensive medical care.
By Cindy Cummings