Healthcare Costs
Current Issues with Health Care Costs
Truly Benton
Atlanta, Georgia
Current Issues with Health Care Costs
Health care spending in the U.S. continues to soar to unsustainable levels. There are many strategies and views on ways to contain health care costs, while improving the efficiency and quality of health care. Hospital services, physician services, prescription drugs and technology/medical innovation and the aging population are areas that drive the high cost of health care creating an unaffordable dilemma for consumers and employers.(Cowen & Moorhead, 2011) Uninsured individuals who are unable to afford health insurance are less likely to coordinate their care appropriately, leading to poor health outcomes.
The aging of the population and the rising cost of health care would cause spending on the major health care programs and Social Security to grow from more than 10 percent of GDP today to almost 16 percent of GDP 25 years from now. That combined increase is equivalent to about $850 billion today. ("Congressional Budget Office," 2012) The aging of the baby boomer generation will have an impact on federal spending as well as health care costs. ("Congressional Budget Office," 2012) Increase in longevity due to medical advances and technology are a factor in spending growth increases. (Henderson, 2012)
The second largest segment of U.S. health care spending is on physician services. (Cowen & Moorhead, 2011) Providers are paid for services rather than patient outcome. This creates little incentive to coordinate patient care with other specialist. A large portion of the aging population has multiple chronic conditions which would benefit from better coordination of care. (White, 2010) With the shortage in primary care doctors and the aging baby boomer generation consuming more care, costs for physicians services will likely increase. A new model of primary care called the patient centered medical home provides better
Truly Benton
Atlanta, Georgia
Current Issues with Health Care Costs
Health care spending in the U.S. continues to soar to unsustainable levels. There are many strategies and views on ways to contain health care costs, while improving the efficiency and quality of health care. Hospital services, physician services, prescription drugs and technology/medical innovation and the aging population are areas that drive the high cost of health care creating an unaffordable dilemma for consumers and employers.(Cowen & Moorhead, 2011) Uninsured individuals who are unable to afford health insurance are less likely to coordinate their care appropriately, leading to poor health outcomes.
The aging of the population and the rising cost of health care would cause spending on the major health care programs and Social Security to grow from more than 10 percent of GDP today to almost 16 percent of GDP 25 years from now. That combined increase is equivalent to about $850 billion today. ("Congressional Budget Office," 2012) The aging of the baby boomer generation will have an impact on federal spending as well as health care costs. ("Congressional Budget Office," 2012) Increase in longevity due to medical advances and technology are a factor in spending growth increases. (Henderson, 2012)
The second largest segment of U.S. health care spending is on physician services. (Cowen & Moorhead, 2011) Providers are paid for services rather than patient outcome. This creates little incentive to coordinate patient care with other specialist. A large portion of the aging population has multiple chronic conditions which would benefit from better coordination of care. (White, 2010) With the shortage in primary care doctors and the aging baby boomer generation consuming more care, costs for physicians services will likely increase. A new model of primary care called the patient centered medical home provides better
References: Henderson, S. (2012, December 1). The Patient-Centered Medical Home. The American journal of nursing, 112(12), 54. The 2012 Long-Term Budget Outlook. (2012). Retrieved from www.cbo.gov/publication/43288 White, B