Why Are Costs of Medical Care Rising in the US?

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The WHO states that it considers excellent health as central to the happiness and well-being of humans. Yet, the rising costs of medical care are serious concerns in today’s society. Most people need financial help to be able to afford treatment for an illness.

Being insured is essential for every individual but not always easy. Those at Cobra Insurance Coverage mention how you can lose your plan if you can’t afford the premiums. The problem is that it’s getting more expensive to restore and maintain health.

Let’s look at the reasons for the rise in treatment charges.

High Administration Costs

The U.S. healthcare system is very complex. Providers have to deal with a myriad of requirements and regulations. As such, they incur high costs to use help to process invoices and reimbursements.

A Journal of the American Medical Association (JAMA) study shows that America spends about 8% of its healthcare budget on administrative expenses.

Use of More Technology

Doctors in the States also use many diagnostic tools in their practices, such as CT and MRI examinations. They earn a lot of money from conducting these tests, so patients have to bear the expense.

As the cost of purchasing and maintaining these machines increase, consumers will continue to pay high fees.

Unneeded Tests

Medical practitioners also require patients to undergo scans and checks that may not be necessary. These tests cover all the bases and protect them from possible lawsuits.

Consumers don’t object to these exams because their insurance companies pay the costs. Yet, this practice can lead to higher prices in the long run.

Lack of Regulations

While the governments of other nations exercise some control over the prices of drugs and medical services, that’s not the case in the U.S., where providers are free to charge fees based on market forces.

This situation causes Americans to overspend almost four times what people in other developed parts of the world incur for pharmaceuticals.

Medical Practitioners Are Highly-Paid

Studies show that doctors, specialists, and nurses in America earn more than their counterparts in other countries. As the demand for higher wages grows, patients will ultimately bear the cost of the increase.

High Hospital Margins

Reports show that medical centers earn up to 8 percent in profit, higher than the insurance and pharmacy industries. Inpatient and outpatient prices rose faster than physician fees between 2007 and 2014, and surgical procedures exceed those charged by other countries. Hospitals also receive 33% of America’s health care budget.

The high fees charged don’t always correspond with the quality of the service. It’s more often a case of financial goals set by the owners. Consumers are spending more because of corporate greed.

How Long Will the Increase Continue?

It’s getting more expensive to be sick in America, and it’s likely to persist unless the government steps in to regulate fees and prices based on the needs of the people. Leaving matters to market forces will only worsen the situation.

As other countries have managed to keep their medical care costs low, the authorities could adopt some of the better practices to ease its citizens’ financial burden. Only time will tell if this change will happen.