Problems/Solutions To Rising Cost Of Health Care

Rising Cost Of Health Care


As the days proceed the rise of health care cost has been rising uncontrollably as seen in the insurance costs and employee medical claims. Business leaders as well as economist have been hired to come up with ways possible in order to stop the escalating costs.  As a result majority of institutions have introduced workplace health programs to assist the employees adopt more health lifestyles to avoid diseases and complications that ma come in between. Globally the rising health costs have been a n issue of concern or otherwise they will outgrow the economy and deteriorate other sectors that are fundamental. However, the health care cost cannot be ignored in any way since it affects the humans (Bohmer, P78).

 The health care cost being a challenge therefore the national health spending are projected to progress in faster growth than the economy. In U.S, the cost has increased from 18% of the economy almost 23% today and it is predicted to increase to over 27% by 2037. The introduction of new health care law does not alter any of the growth rate thus is termed as irrelevant as long as the solution to the problem is concerned. The trend as a already marked a negative inclination to other decisive investments such as infrastructure and education.

According to the national health expenditures, total of $2.2 trillion that is equivalent to 16% gross domestic product in 2007 were reported to be spent in health care following a increase from 14% in 2000.  In regard to the population, the data above is constituted to have an average of $7,500 per person which is relatively higher than expected. Annually, chronic diseases such as cancer, stroke, heart diseases as well as diabetes claim 7 out of 10 deaths that account to over 70% of the $2 trillion that is spent in health care. From 2007, 2008, 2009, figuring these diseases alone, total of $85 billion, $147 billion and $475.3 billion were spent respectively. Not concentrating on the national expenditure alone, the personal health cost is more critical than all. Individuals are entitled to pay for their respective expensive medical bill without any option. Services such as physician appointments, hospital care, nursing home care, dental care, drug prescription among others are left for the individual patient to cater for regardless of the 85% health expenditure known to cater for this area (Buss, P112). Resultantly employers spent over $88 billion to their workers catering for heir medical cost resulting from, injuries and other minor illnesses that is inclusive of both insurance systems as well as the cost shifting.

 Resulting to the rising number of such cost therefore some individuals who are in lower and middle class level evade from the important medical services since they cannot afford them. As a result they end up being affected in critical conditions and even deaths.

The problems to rising cost of health care

Defining the problem of the health care escalating cost is thus apparent from the illustration above. The effects are known to pinch not only the affected individuals but also the economy as a whole. Therefore, individuals are not to blame neither do the medical institutions, who claim to raise the cost out of unwillingness. “Everyone is entitled to have the reform burden and help t curb these rising cost or otherwise they will rise to the point that everyone will not be able to afford” (Dutton, P76). The escalating health care cost have lend most families in problems of balancing the basic needs in their home after they are emptied their pocket in every medical bills that they must encounter with in one situation or another. Thus balancing needs such as rent, clothing and food remain unattended. Small growing  business  remain stagnant in terms of development as they are not  in position of accommodating new employees due to the high expenses spent on their medical bills every now and then. Nationally, the overall result of rising health care costs are in-depth and portentous thus wiping off the  nations safety net, long term fiscal insolvency, erosion in global competitiveness among other national threats.

To find out the possible solution of this problem, it is vital to comprehend the causes that come with it. There several causes of high health care costs hat include defensive medicine, paying for volume over value as well as higher medical prices, the use of new technology that is not considerate of it efficiency, absence of transparency of prices and quality information.

Solutions to rising cost of health care

Reduction of the growing rate of health care cost does not only require an inclusive, bipartisan loom but also a collaborative one. Since there is no simple acknowledged technique that can aid in lowering the costs it is advisable for the health experts, economists, government agents as well as the individual citizens to facilitate in coming up with solutions. Among the sources of the solution are the health plans tat collaborate with providers to craft  high rate  payment systems that are inventive in  order to improve both  quality and quantity need  in he health care. More over health plans sanction patients with new options for coverage that focuses on high-performing providers, provision of case management and care coordination..These approaches though not fully but they have aided to help in reduction of care cost as long as citizens are concerned.

There are other recommended solutions tat are believed to terminate this problem if taken serious. Some of these possible solutions have been recommended by AHIP’s board of directors that had formally released a statement of complaint upon the problem

Dealing away with transparency barriers: action to clear up hidden transactions and activities that curb stakeholders from comprehension of market moves should be exposed. A follow up made shows that market dynamics product distribution to consumers were poorly made resulting to illegal transactions of health care product to individuals who own private sector. As result releasing this product to medical institutions is made higher than normal. By doing this, consumers and buyers will have an improved line of sights and no impure transaction will take place.

Discourage use of fee-for-service payment and use affixed amount payable at a particular period to cater all the needs of patient. Alternative payment methods are cheaper and affordable sine the costs of health care costs are not prone to increase unexpectedly resulting to stakeholders’ decisions.

Encourage use of competitive bidding where the government is not the determinant of health costs to the patients as well as the health institutions. Therefore, the cost of health care commodities should be determined by the manufactures and suppliers where they compete on the one that gives the lowest prices. As a result there will be a decreased exploitation of consumers and individual citizens.

Simplification of administrative systems should be applied where the providers and payers are able to exchange their claims eligibility and electronically. By this way a set binding compliance is targeted, monitoring use rate and implementation of measures to achieve system wide savings that is estimated to save over $30 billion annually therefore the cost of health care reduced.

There should be full transparency in price to the consumers. It is actually the truth of the matter that before treatment they should know how much it will cost. The government agencies and insurance companies should provide this information first hand. It should be able to reflect negotiated discounts with specific providers (Hyde, P72).

Empowerment of non physician providers should be a fact to be considered. Laws should be implemented and put in place to restrict non physician providers such as advanced practice nurses from extending into full practice of what they trained on. Making a more constructive use of these providers should be able to expand the work force supply thus increasing the efficiency in competition and lowered prices.

There should be a regulation to prohibit physicians self referral. In other words studies indicate that physicians tend to use the opportunity of referring their patients to facilities in which they have financial interest where they drive up the cost and in return may bring a negative impact on the quality of care provided.


We should rise to fight against health care fraud and abuse. This has an enormous adverse impact on health care quality and safety while in the other hand imposing higher cost on consumers, employers and the taxpayers. Health plans are leaders in fighting this fraud and their effectiveness is clearly demonstrated by the increasing degree that the government health program is adopting private health care plan practice (Burke, P201).

Having in mind the facts of what is evident and what I happening in the real life it is time we stopped sitting down and folding up our arms. We ought to rise to the occasion and fold up the sleeves of our shirts and get to solving all this issues if we want to see changes that not only have a positive impact but bring change that is needed. The administration and those in charge with the department should be at the fore front fight for this to implemented if they mind the welfare of all those involved in this. Let’s see to it that everybody gets a fair treatment and attention as they ought to and benefit positively from it. it should be one side in that it is only made for a certain group of professionals but should cut across every participating entity.

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