HEALTH CARE SPENDING

Health Care Spending



Health Care Spending

Reforms to slow rising health spending and increasing health care spending is largely focused on insurance-based solutions. Consumer health is the most recent example of this approach. However, much of the growth in health spending over the past twenty years connected with the adaptation of the population risk factors such as obesity and stress. Rise in the number of diseases and new treatments for almost two thirds of the cost increases. To be effective, reform must be aimed at health promotion, public health, and cost-effective use of medical care. This paper summarizes the factors responsible for the growth of health spending over the past twenty years. The data suggest that much of this growth was due to increases seen the emergence of the disease, population growth is fueled by risk factors such as obesity and innovations in the treatment of chronic diseases. Most of the paper, it outlines a series of reforms that are designed to eliminate the factors responsible for rising costs.

Over the past few years, health insurance spending rose 54%. This steady growth in recent years is associated with lower out-of-pocket spending paid by consumers. But without knowing the full spending associated with health, consumers demand more and "excessive" him. The cost increase was also associated with increasing use of prescription drugs and new medical innovations and treatments. Still others believe that growth can be attributed to a lack of competition in the healthcare market and offered new approaches to health plans to compete on price and results. Economists are thinking about improving health to note that the cost of care there are only two ways to slow its growth: reducing the costs of expensive medical care, which produces no benefit, and reduce the spending of care for high-value, which provides some health benefits, but even higher spending. Along these lines, some have suggested that we need to "ration rationally" to slow the growth of spending. While this may be true, such an approach ultimately involves some form of rationing and difficult decisions regarding the introduction of new technologies. Proposals to increase patient cost-sharing for the consumer models are designed for consumers place in a position to make these judgments health care for themselves.

When diagnosing problems identified as a low consumer cost-sharing and the growth of discretionary use of services, policies were aimed at the demand side intervention. These innovations are aimed at reducing the discretionary uses of health care think comprise the bulk of cost increases. Consumer-driven approaches include a wider dissemination of information to consumers about prices and quality, combined with products such as medical savings accounts (HSAs). HSA concept is designed to reduce spending by consumers more conscious of their use of routine medical care. Health behaviors such as excessive consumption of food, lack of physical activity, smoking, stress, and approximately 40-50% mortality. Thus, relying solely on the consumer model is unlikely to solve the problem, as it is not enough to address the key ...