Question

what are some of the reasons for increased health costs that are attributed to the providers of medical care

Answer 1

The healthcare costs keep on rising for decades. One of the increased costs is the introduction of medicare policies, with which the health care providers are able to rise the costs of care.

The major reasons are:

1. Growing population:

As the population grow and number of old people rise, need for health care also rise. This is a main cause for increased cost of health care in the state.

2. Aging population:

As the better health care has resulted in increased life expectancy, the number of old age people are very high. As the age increases, the health care needs also increase.

3. Chronic illness rise:

The changes in lifestyle and the environment has given rise to many chronic illnesses. Diabetes, back pain, high Bp, high Cholesterol, cancers etc need continuous and long term medical care. This is another cause for high health care cost.

4. Utilization of medical services:

People are utilizing medical services for every issues related to health. The medical services has been utilized not only in clinics but also for ambulatory care. The cost of outpatient care and emergency care add to the total cost. People are availing care at homes which again needs more money.

5. Price of service:

The health insurance premiums have also raised. Government programs of Medicare etc have again increased the accessibility of care for uninsured individuals and it in turn increase the health care costs.

In spite of insurance, out of pocket costs are also more in the health care.