...The Impact of Rapidly Rising Medical Cost In Partial Fulfillment of the Requirements of: Managerial Economics Summer 1, 2013 Trends in Medical Costs There is no denying that medical costs have not only risen in the past and continue to do so in the present, but this rise is faster than that of other expenses. [1] In this sense the relative costs of medical care have been rising. ‘Health care spending has risen about 2.4% points faster than GDP since 1970 according to the Kaiser Family Foundation. [2] The causes of this rise can be traced to many policy reasons that include-increasing role of third party insurers which pay the bills, and the increasing role and scope of government intervention in policy and finances of health care. [3] Experts point out that the main problem is that the final user does not pay the cost anymore and this distorts the market and pricing mechanism of health care. Also, the demographic status of USA is such that the older people are rising in numbers, and they need more care-which raises medical care for the economy. Thus, a combination of wrong policies, and demographic factors, along with the current recession conditions have lead to a galloping of medical care bills for the entire economy. The share of medical care costs in GDP is rising consistently. Indifference Curve Analysis The effects of rising medical care costs are widespread and need a general equilibrium, economy wide modelling. In brief we can...
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...As noted health care spending has been rising for several years across countries around the world. Between now and 2050, the OECD predicted that for average nations, public spending on health and long-term care could almost double as a share of GDP in the absence of new policies to address trends in this sector rising from the current average level of 6-7 % of GDP to around 10% (OECD 2006). That estimate includes the consideration that as people live longer, they also remain in good health for longer. Even including cost containment measures, results have shown that public spending on health care are expected to see large increases, and in less wealthy countries, those increases could be dramatic. The dynamic of these changes has been characterized...
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...Health care expenditure has been on the rise for several years across several countries around the world. Between now and 2050, the OECD predicted that for average nations, public expenditure on health care and long-term care could double as a share of GDP in the absence of new policy to address past trends in this sector, rising from the current average level of 6-7 % of GDP to around 10% (OECD 2006). That estimate includes the consideration that as people live longer, they also remain in good health for longer. Even including cost containment measures, results have shown that public spending on health care could see large increases, and in less wealthy countries, those increases could be dramatic. The dynamic of these changes has been characterized...
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...affordable and accessible health care coverage and services. Within the past thirty to forty years, the scope and cost of health care coverage and services has drastically changed, altering the manner in which health care was previously managed. There are several factors that have affected the cost of health care coverage over the course of the past two to three decades. One of these factors is the introduction and rapidly increasing enrollment in managed health care insurance plans. Managed care health insurance plans can, in most cases, help to alleviate the rising costs of effective medical coverage. Another important factor that has affected health care costs is the invention and implementation of new medical technologies. As prominent researchers and economic analysts have discovered, there is a distinct and direct correlat! ion between advancing medical technologies and rising health care costs. Medical innovation has been proven time and again to be an important determinant of health care cost growth. It would appear that managed care health insurance plans, which attempt to lower health care costs, and highly expensive new medical innovations and procedures are at cross purposes, pulling against one another in very different directions. Market-level comparisons have found the cost growth of health care in markets with greater managed care penetration to be generally slower than that of non-managed care health insurance markets....
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...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...
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...educational, and socio – demographic implications can bring serious impact on access to quality healthcare in the organization. Labor shortage will stay an important component that can affect as well the access to quality care. Socio – demographic changes linked with chronic illnesses can have an effect on the aging population, which may reduce the quality of life, increase costs for healthcare and rise resource allocation. In point of fact, both labor shortage and socio – demographic changes are exactingly dominant in the admittance to quality care in the United States. Besides, the demand for registered nurses and changes in science is already exceeding supply in U.S. nation, including more implications associated with other ethical dilemmas. Healthcare Labor Shortage People have to realize that progresses in medical technology, increasing expenses and market forces provide to the financial decline of many rural healthcare organizations. In reality, small rural healthcare suppliers, particularly hospitals, cannot meet the costs of the equipment and practitioners needed to treat the range of modern syndrome and injury. In fact, coronary bypass surgery, complex trauma care, artery repair, and other compound procedures will call for enthusiastic remedial teams, utensils, equipments, and facilities as imperative demand. In reply to research library database a coalition stated, “The Center to...
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...* Home Page » * Other Topics Rising Health Care Cost In: Other Topics 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 Edu.org, 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...
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...The High Cost of Healing Barbara Bauman HCS/440 April 21, 2014 Dr. David Moody The High Cost of Healing The cost of health care has been at the forefront of politics for years. It is one of the most talked about topics not just in political venues but also country wide. Every American has an opinion on how our economy can be fixed and they are passionate about health care reform. The price of insurance alone causes many Americans to not have coverage. For those that can afford coverage, the struggle to pay co pays is immensely crippling their bank accounts. Of these burdens on Americans today, the most frightening fact lies in the cost of prescription medications. The price for prescription medications is quickly becoming one of the largest medical expense burdens on Americans today. Many Americans are cutting expenses in other areas of their lives such as groceries and entertainment in order to obtain the pills that directly affect their health. Some people do not have prescription medication coverage in their policies and have to pay 100% out of pocket. The demand of certain drugs is causing and allowing some companies to greatly increase price ("Consumer Reports", 2006-2014). Skipping a bill such as a mortgage can cause many issues for a person but can usually find resolve with time. However, many people are taking other dangerous steps such as not following up with doctors or specialists and even electing to not have procedures performed because...
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...Running head: HEALTH CARE SPENDING PAPER Health Care Spending Paper Lonna Becton 10/31/11 Steven Miracle Health Care Spending Paper Health care and health care spending is a huge topic that will always be discussed for years to come. Throughout the years, there are millions of monies spent on health care organizations to make them better to improve services to the public. For a long time there have been debates on how to come up with a solution for funding. So far the issue is the same and health care spending is gradually rising. Expenditures in the U.S. on health care exceeded $2.3 trillion in 2008. As a result of this growth it has become the main policy priority as we, employers, consumers, and the government fight to keep up with expensive health care costs. Even though we all benefit from investments in health care the rapid cost growth and the economic slowdown together have great strains on the systems used to finance health care which include employer sponsored health coverage and public insurance programs like Medicare and Medicaid. Premiums for employer sponsored health insurance have increased pushing burdens on employers and employees. While workers’ wages are decreasing or at a standstill health care costs is steady growing and employees cannot afford out of pocket spending. The United States is a capitalistic country; they put the blame on private consumers and other establishments like employers or insurers. The American health care system is...
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...their own healthcare needs. Justify your response. Measuring health is used commonly across populations and individual measures used in providing healthcare today. Tracking health of the population is necessary to trend and control cost. The broad health account requires data on medical care expenditures and on the benefits derived, which are what patients and collectively, society seek to purchase. The output side of the account is quantified in terms represented by the population's health. The U.S. spent more than $2 trillion dollars on health care, or $7,026 per capita, in 2006. This is about twice as much per capita as countries such as Australia, Canada, the United Kingdom, Germany and Japan. Not all of the increases in health spending are necessarily bad. Some health economists note that as countries become wealthier, they choose to spend more on health care. Some analysts, such as David Cutler of Harvard, argue that most of the additional expenditure is a worthy investment which pays dividends in terms of decreased mortality and improved quality of life. Also, while health expenditures may be burdensome to some, they provide income to others. Hospitals and health care facilities are the economic engines of many communities. Some of the wages and supplier revenue they generate gets returned to state and federal coffers in the form of corporate and individual taxes. However, health spending has been rising two and half percent a year faster than the gross domestic product...
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...ABSTRACT The rising costs of health care plans in America is uncontrollable. The number of citizens who are living without health care insurance continues to rise, while at the same time the price of having insurance continues to grow. Instead of the government reforming the health care system, they continue to spend billions of dollars in aid through Medicare, Medicaid, Tricare, and other government programs - Dollars that could perhaps be better spent on funding programs to ensure every American is provided an affordable health insurance. Over the past year it has become apparent that insurance companies are looking to capitalize by setting premiums higher, as the President talks about implementing a mandate on citizens to have health care. The debate on whether health care should be a profit market or Government controlled should be considered. Through all the turmoil, one thing is certain: America is in need of a Health Care Reform. PREFACE Growing up on poverty, my parents did their best to provide what they could. I was fortunate to be put into State custody at a young age and my brothers and I received full medical treatment under Medicare. A government funded subsidy that allowed us to have free medical attention. As a child, not much thought went into the idea, but as I got older I realized the importance of health insurance. My foster mother had to be rushed to the hospital a few times due to really bad asthma attacks, apparently...
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...Question 1: Assess your community’s access to health care technology and determine how that access (or lack thereof) impacts your community economically. The use of modern technology in the healthcare field is seen to have grown rapidly over the years. Many hospitals and health care providers are embracing new innovations of technology in healthcare. Technologies in healthcare have provided clinical benefits such as prolonged life and improvement in the quality of life. There is an increased access to health care technology in my community today than it had been in previous years and this also has led to increased health care utilization, making it difficult for people to make choices on healthcare or other priorities such as subsistence like food, shelter and others to choose from. Technology is expanding every day and healthcare systems are utilizing new services which will make health care cost continue to be on the rise. An example of technology used in the healthcare field today is the Magnetic Resonance Imaging machine also called the MRI. This is a very important medical procedure that physicians have adopted and allows them get in depths look at what is happening in a patient’s body. This helps healthcare providers find the source of an illness or pain and also helps in determining a plan of treatment for such patient. The average cost of the MRI procedure is $3,500 depending upon which MRI procedure is performed. With the increasing cost of technology, people...
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...The Analysis of Market Failure in the U.K and the U.S. Health Care System Contents Executive Summary 3 1. Introduction 3 2. Findings 3 2.1 The health care system in the U.S. 3 2.1.1 Adverse selection 4 2.1.2 Moral hazard 4 2.1.3 Market power (the pharmaceutical firm) 5 2.1.4 The Medicare-Medicaid 7 2.1.5 Suggestions and solsolutions...................................................8 2.2 The health care system (NHS) in the UK 9 2.2.1 Asymmetric informtion 9 2.2.2 Incentive problems 9 2.2.3 Market power of the health authority 10 2.24 Suggestions and solutions....................................................... 11 3. Conclusion 12 Reference List 12 Executive summary The main purpose of this report is to assess two approaches to health care, and briefly discuss market failures and the induced inefficiencies in them with the comprehension of applied microeconomics. This report will try to link the facts in health care provision with the essence of each health care system. Several practical proposals will be constructed. 1. Introduction Health care, as one of the most complicated public services, is an essential issue both in economic and social areas. The provision of health care is a matter of a whole nation’s welfare quality. In the contemporary world, there are two dominate but distinguishable health care systems. One is publicly provided, an example...
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...for Rising Health Care Costs Shante Dennard Eng. 122 Composition II Instructor: Jessica Harnish April 1, 2013 Over the years many states have failed to adjust tax rate inflation which has resulted in a loss of billions of dollars in potential revenue. That revenue could have help funded essential health and human needs programs or reduce the deficit. Revenue from alcohol and tobacco continues to be of more importance these days as our economy tries to overcome budget deficits. A 2008 report of the Congressional Budget Office estimated that increasing and reforming federal alcohol taxes could generate more than $28 billion in new revenue over five years. Alcohol and tobacco imposes enormous cost on society an according to the latest government estimates some $185 billion per year. Alcohol and tobacco should be taxed because health care imposes an enormous cost on society. This is associated with the underage use of alcohol and tobacco, traffic crash fatalities, certain crimes and alcohol related health problems. The author (Green, R. (2011) uses a public health nursing model, the Public Health Code of Ethics (Public Health Leadership Society, 2002), the American Nurses' Association (ANA) Code of Ethics (2001), and other relevant ethical theory to weigh and balance the arguments for and against the use of sin taxes. Some say that an increase in “sin taxes” will increase health care costs, but the government will take a greater role in regulating health care...
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...Comparison Reimbursement Programs and the Movement of Finances in the United States Health Care System by Ronald J. Sanders MBA520, MBOL2, Health Care Organization Instructor: Dr. Sandra Washington Saint Leo University Distance Learning March 17, 2013 Abstract Effective payment program strategies are a major part of administering health care. Reimbursement programs are a part of the United States (U.S) health care system. They represent a financial tool for providing cash flow to service physicians and hospitals. Many times, the ability to provide quality health care depends on the payment for the services given by physicians and hospitals. This paper presents a view of payment reimbursement systems within the health care industry. A comparative overview and description of payment reimbursement will be given in order to understand the flow of finances in the health care industry. The focus will be on the capitation and fee-for-service reimbursement systems. Readers will then be able to conclude that the appropriate reimbursement method is dependent upon the amount of risk a party is able to assume. Comparison of Reimbursement Programs and the Movement of Finances in the United States Health Care System Physicians that are part of the managed care system have several methods in which to be compensated or be reimbursed for services. Two popular methods are Capitation and Fee-for-Service. Physicians have confronted several challenges...
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