The major factors of rising healthcare costs are: An aging population: The average age of our members is 47 years old. By 2008, about 15 percent of the general population in the US will be 65 years of age or older. Lifestyle choices: Seven out ten Americans do not exercise regularly. Inactivity is one of the leading causes of many chronic diseases. Prescription drug costs: Many sources say that the increase in prescription drug costs accounts for about 20 percent of the overall increase in healthcare costs.
Cost Shifting: When patients don't have health insurance or their health insurance does not pay for all the care they need, the cost of the care is shifted to those patients with health insurance. Medical Technology: Medical technology helps diagnose conditions earlier allowing for better recoveries. But, it has a big price tag.
One of the key drivers of the rising cost of healthcare is hospital care. Between 2001 and 2002, the cost of outpatient services was the fastest growing part of healthcare, increasing by about 15 percent. Inpatient hospital costs, which make up the largest single component of healthcare costs, rose by six percent.
Most researchers agree that the primary reason the cost for outpatient care has increased is because the cost of using the out patient setting for medical procedures is no longer less expensive than having procedures done during hospital admissions. Inpatient hospital cost increases are due to the increase in the use of more expensive technology, higher labor costs because of the growing shortage of nurses, hospital consolidation and increasing costs for hospital admissions even though the length of hospital stays has decreased.
New medical technology, such as MRIs, allows doctors to see inside the body and more accurately diagnose conditions. They also let doctors diagnose conditions earlier, leading to a more complete recovery for the patient................
