Spiraling Healthcare Prices in the US

The U.S. economy is experiencing dismal economic times for a variety of reasons, and one of the biggest is increased spending on healthcare. The cost of healthcare is spiraling rapidly upward in the U.S., and is leaving many Americans without health insurance. Currently, the U.S. spends around 16% of its Gross Domestic Product on healthcare – an average of 6% more than other countries – and that percentage continues to grow. That means that other vital concern, such as the environment and education, are receiving less funding and attention.

Some might blame private health insurers and rapid increase in premiums for the decline in affordability of health insurance, but recent studies show that the underlying problem is much deeper. According to Paul Ginsburg of the Robert Wood Johnson Foundation, the rise in medical spending is in large part a response to the increased use and development of medical technology(http://www.rwjf.org/pr/product.jsp?id=35368). Use of new costly medical technologies and the development of them have risen exponentially, and the evidence shows that those technologies are not as beneficial as many healthcare professionals believe them to be. Care that is more expensive does not necessarily mean better quality care, and often the same patient diagnosis can be made without the use of expensive medical technology.

Experts are now looking at putting limits and guidelines on the use and development of new technologies in hospitals and physician services. The ineffective use of new tests, equipment, and other devices is driving healthcare costs up, and a good start to cutting those costs is the implementation of guidelines.

References:

www.healthbeatblog.org/2008/11/the-truth-about.html

http://www.rwjf.org/pr/product.jsp?id=35368