Financing Jeremy Essay

Submitted By jegaston
Words: 522
Pages: 3

Jeremy Gaston
Healthcare Spending
November 26, 2014

Healthcare Spending Healthcare spending in the United States has risen dramatically in the last ten years. The United States spends two –and- a- half times more per person than other developed countries on healthcare. Most of the higher costs have been either been absorbed by providers or passed along to consumers in the form of higher premiums and copays. Although the cost of healthcare will rise in the next several years, businesses are trying to develop plans to reduce costs. There are three major causes that are driving the rise in healthcare cost they are technology, hospital costs, and life style choices. Technology is rapidly changing in healthcare today. New technology is not cheap and patients expect the newest technology in the diagnosis and treatment of their condition. “Also with the passing of Affordable Care Act many institutions have to convert to an electric medical record. Installing and implementing electronic health records is costly – often as much as $25,000 per doctor for a system and a monthly subscription fee on top of that – and requires significant resources” (Forbes,2013). Rising hospital costs are another contributing factor. With more and more hospitals joining together to form large systems there will be a decrease in competition that will increase hospital costs. Finally, a person’s life style choices have a major impact on the cost of healthcare. According to the CDC’s National Center for Chronic Disease Prevention and Health Promotion, our common, health-damaging but modifiable behaviors – tobacco use, insufficient physical activity, poor eating habits, and excessive alcohol use –are responsible for much of the illness, disability and premature death related to chronic disease. (Forbes, 2013). With the rising cost of healthcare affecting a company’s bottom line, many are implementing different strategies to contain costs. Wellness programs have shown to be an effective tool against rising costs by promoting better health. Employers offer wellness programs to affect the overall health of employees (and sometimes dependents), in an attempt to decrease costs and increase productivity (Kavnagh, 2012). Many companies are turning to high deductible health plans. HDHP deductibles are often