Question

What factors have led to increased spending in Medicare? What changes could be made to control the increases in spending?

Answer 1

Answer: Healthcare product and service prices are one of the major cause of increasing spending in Medicare, it has been found in one of the studies that price growth causes 10 percent to 25 percent of healthcare spending growth. Advance technology is being used in the health care organization for many purposes, the cost is high which lead to increased spending in Medicare. There is legal issues as well as supply and demand problems which enhances more spending. Things can be controlled as if we ourselves become more conscious about health and diseases. We should have proper knowledge of the demand and supply to avoid the malpractice in the health care organizations.