The productivity of the country’s labor force dictates every nation’s development. When a nation prioritizes quality health and wellness training, the citizens remain active, contributing to higher productivity. The government continues to fund research to aid in developing drugs for treating epidemics and diseases that previously had no cure. The study has also helped in the development of new technologies that facilitate better patient treatment outcomes. However, the cost of administering healthcare continues to rise over the decade. The statistic reveals that the US government spent about $3.9 trillion in 2019 to fund healthcare, and the amount could increase to $6.2 trillion by 2028. Numerous factors impact the cost of healthcare, including:
1. Growing Population
Population growth increases patients’ likely to seek healthcare services. The US had about 253 million people in 1991, with figures rising to 332 million people by March 2021. The federal and state government has increased their budgetary allocation to expand health infrastructure to cater to more people. Besides, the government has to spend more funds on training healthcare professionals. Moreover, healthcare provision costs have also increased due to the rise in professionals involved in medical research. More health professionals working in health facilities have also driven up the cost of healthcare.
2. Administrative and Healthcare Service Cost
Compared to other countries, the cost of administering healthcare services in the US is significantly higher. The charges arise from the physician’s salaries and higher administrative costs. On average, a physician in the US earns $218,174, a year whereas their counterparts in other nations earn between $90,000 and $155,000. Besides, complex billing systems and insurance-related costs increase health provision costs. Lately, patients have launched complaints due to increased out-of-pocket payment where insurance fails to cover some procedures. However, insurance providers are generating huge profits from increased enrollment and fewer hospital capitations. Negotiating for better terms can help achieve better outcomes for all the parties. A healthcare consulting firm helps providers negotiate better contracts with insurance companies, leading to decreased healthcare provision costs for the patient.
3. Aging Population
An aging population impacts heavily on the cost of healthcare provision. Increased medical research made it possible to treat most healthcare conditions, enabling people to achieve a higher life expectancy. Therefore, more people live to above 80 years. Most of the patient above the age of 65 suffers from one or more chronic health conditions. The cost of administering treatment to chronically ill patients is higher. In addition, patients above this age may require long-term care at a nursing home. Such extra services contribute to a rise in overall medical care costs.
4. Chronic Disease Prevalence
Increase incidences of chronic disease among the patient have multiplied healthcare costs. The chronically ill patient often requires long-term care. The impact of chronic conditions such as stroke, cancer, and kidney disease has led to increased insurance premium claims, a factor that made insurance companies restructure the premiums. Additionally, patients with chronic health conditions could experience challenges in undertaking their daily activities, necessitating secondary home care, which adds to healthcare provision costs.
5. High Drugs Costs
Research has led to drug development that allows physicians to treat conditions that previously had no cure. However, most of these drugs are highly priced to compensate for their research and development funds. The increase in specialty and precision drugs to treat specific conditions has also continued to increase healthcare costs. Additionally, drug manufacturers utilize a pricing strategy to raise drug prices to achieve a higher profit margin when their drugs demand increases. The rise in the costs of drugs ingredient has also contributed to increased drug prices and an overall cost of healthcare provision.
The health and wellness of a population influence their productivity. When more people are healthy, productivity is higher. In recent years, the cost of healthcare services in the US. The increase in population, administrative expense, and incidences of chronic disease has led to the high cost of treatment. A rise in life expectancy and increased drug prices have also contributed to the increased cost of medical care. The government should strive to improve access to quality and affordable care.
Article Submitted By Community Writer