Question

Why are healthcare  costs so high? What can realistically be done to control costs? What are your solutions? Please answer in 2-3 paragraphs.

Answer 1

Ans) Healthcare costs have steadily risen for Americans because of government policy. Since the inception of Medicare and Medicaid, providers have been able to increase prices, as these programs help those who don't have health insurance. The rest of the country relies on healthcare that's sponsored by companies.

- Healthcare becomes costlier when the population expands, and people get older and are living longer. Therefore, it’s not surprising that 50% of the increase in healthcare spending comes from increased costs for services, especially inpatient hospital care.

- Rising costs have created another casualty: People who skip medical care altogether. They do so not because they are afraid of doctors, rather, because they're afraid of the bills that come with healthcare. The result of delaying or avoiding treatment is obvious, eventually the care required will be even more expensive.

- Major drivers of health care costs include: inappropriate utilization especially of advanced
medical technology, lack of patient involvement in decision-making, payment system
distortions that encourage over-use, high prices for health care services, a health care
workforce that is not aligned with national needs, excessive administrative costs, medical
liability and defensive medicine, more Americans with declining health status and chronic disease, and demographic changes including an increase in elderly persons.
Improvements in health care have the ability to provide opportunities for all people to live
better, healthier lives. However, the rate of increase in U.S. spending on health care continues to exceed economic growth at an unsustainable pace. The rate of growth in health care spending is the single most important factor undermining the nation’s long-term fiscal condition.
- Increasing pressure to control health care costs necessitates that limited healthcare resources be used equitably and judiciously. Healthcare expenditures must be correlated with high quality and efficiency in the delivery of services to improve health outcomes. This requires understanding the benefits and effectiveness of clinical procedures, recognizing the major drivers of health care costs, and identifying potential means for achieving savings.
Key Findings and Recommendations :
The key policy options most likely to achieve the greatest cost savings are those that:
• Reduce avoidable, ineffective, and duplicate use of services—including technology that
does not improve patient care—and encourage clinically effective care based on
comparative effectiveness research and implementation of information technology.
o Analyze costs and benefits before new medical technology is allowed to enter the
market.
o Coverage decisions should reflect evidence of effectiveness.
o Benefits should be designed to encourage patient responsibility without deterring
needed care.
o Shared decision-making should be encouraged.