Understanding Health Care In The United States
Understanding Health Care in the United States
In this unit, you will be examining current issues in health care, including competing arguments in support and in opposition. For this task, you will analyze what is driving the cost of health care. As of yet, the increase in expenditure is not attributable to one single factor, but rather a multitude of them. Based on your research, determine the 3 major factors that lead to the increase in health care costs in the United States, and determine what potential reasons exist that would allow for the increase in the cost of health care. The potential reasons that exist are a topic of much debate.
You are to focus on what you believe is the 1 major potential reason driving the expenditure. If you choose to use an idea that is supported by someone else, you must acknowledge this person's idea and properly reference it using APA format. You are to also include your personal reasons (based on research) that support and explain why you feel this is the major reason influencing expenditure.
Paper For Above instruction
The escalating costs of healthcare in the United States have become a significant concern for policymakers, healthcare providers, and patients alike. Understanding the primary drivers behind this trend is essential for developing effective strategies to control expenses without compromising the quality of care. Based on extensive research, three major factors contributing to the rising healthcare costs include technological advancements, administrative expenses, and the prevalence of chronic diseases. Among these, I believe that technological advancements constitute the most significant driver of increased healthcare expenditure.
Technological innovation has revolutionized medicine, enabling groundbreaking treatments and diagnostic tools. However, such advancements often come with high costs. The development, procurement, and implementation of sophisticated medical equipment, cutting-edge pharmaceuticals, and minimally invasive surgical techniques require substantial investment. According to the Agency for Healthcare Research and Quality (AHRQ, 2019), expensive new technologies contribute directly to rising hospital and outpatient procedure costs. While these innovations improve patient outcomes, their high prices inevitably translate into higher healthcare spending. Additionally, the rapid pace of technological change often leads to increased utilization, further inflating costs.
Administrative expenses also play a crucial role in driving healthcare costs. The complex and fragmented nature of the U.S. healthcare system involves multiple insurance providers, billing procedures, and regulatory requirements. This complexity results in significant administrative overhead. A report by the Deloitte Center for Health Solutions (2018) estimates that administrative costs account for approximately 25-30% of total healthcare expenses. These costs include billing and coding, claims processing, and compliance activities. Reducing administrative inefficiencies could lead to substantial savings; however, the entrenched nature of these complexities makes it challenging to implement significant reforms.
Furthermore, the high prevalence of chronic diseases such as diabetes, heart disease, and obesity accelerates the rise in healthcare expenses. Chronic conditions require ongoing management, frequent medical visits, medications, and sometimes costly procedures. The Centers for Disease Control and Prevention (CDC, 2020) notes that chronic diseases account for nearly 90% of the nation’s $3.8 trillion in annual healthcare costs. The management of these illnesses extends over years or decades, significantly increasing cumulative healthcare spending. Addressing lifestyle factors and preventive measures could reduce the incidence and severity of chronic diseases, thereby decreasing costs.
Among these factors, I contend that technological advancements are the primary driver of healthcare cost increases. While they undoubtedly improve patient outcomes, the high costs associated with new technologies and their widespread adoption create a significant financial burden. The perpetually evolving nature of medical technology means that healthcare providers and insurers are continually faced with the need to invest in new tools, often without a proportionate decrease in other costs. Moreover, the marketing and promotion of new technologies can lead to overutilization, further escalating expenses. From my perspective, these factors make technological innovation the most impactful contributor to rising healthcare costs, supported by research indicating its substantial influence.
In conclusion, while multiple factors contribute to the rise in healthcare expenditure, technological advancements stand out as the most significant. Addressing this issue requires a balanced approach that encourages innovation while controlling costs. Policymakers must find ways to incentivize the development of cost-effective technologies and implement policies that prevent unnecessary utilization. Only through such measures can the nation hope to curb the relentless increase in healthcare costs without sacrificing the quality of care.
References
Agency for Healthcare Research and Quality. (2019). 2019 National Healthcare Quality and Disparities Report. https://www.ahrq.gov/research/findings/nhqr-metrics/index.html
Centers for Disease Control and Prevention. (2020). Chronic Diseases in America. https://www.cdc.gov/chronicdisease/resources/infographic/chronic-diseases.htm
Deloitte Center for Health Solutions. (2018). 2018 Survey of U.S. Health Care Consumers. https://www2.deloitte.com/us/en/insights/industry/health-care/consumerism-in-health-care.html