Medical expenses are rising faster than the costs of any other service.  About 40 years ago American medical spending was estimated at 5% of national income; today it is calculated at some 17% and rising.   So why is this?

America pays more wages to our medical personnel and facilities.  In a rich country, wages for healthcare workers are high.  Also, doctors conduct an inordinate amount of tests, if that doesn’t work come back and we’ll try this.

Americans are known to be one of the most obese populations in the world.  Fast food, huge serving sizes, the trend of dining out, and a very sedentary lifestyle which may breed physical disorders and complications that finally acquire medical attention.  Rather than choosing healthier foods, smaller portions and exercise, many people turn to surgery and medication for obesity rather than self control and discipline.

Other observes hold the endless stream of medical innovations responsible for rapidly rising health care cost, such as new drugs and delicate tools for microsurgery.

 Instant relief from pain and discomfort.  Many have a problem of being over prescribed medications.  Millions receive narcotics and pain medication for conditions resulting from illness or injury, which is understandable.  Although, there are also too many people requesting pain medication from their doctors rather than tolerate minimal pain or seek other alternatives such as physical therapy or exercise.  It’s easier for them to pop a pill then to tolerate the slightest amount of pain or make any lifestyle changes. 

Other factors; consumers opt for more care if someone else pays for it (Insurance foots the bill).  Insurance guarantees a steady stream of revenue for hospitals and other health providers.  Such ready cash encourages them to build new cardiac care centers full of the latest high tech equipment, knowing it will be paid for.  If you produce expensive new equipment for medical care, people will buy them.  Or I should say insurance will pay for it.

And finally, fraud.  Health insurance fraud costs Americans an estimated 80 Billion each year, or nearly $950 per family.

• The National Health Care Anti-Fraud Association estimates that at least 3% of the nation’s annual health care outlay is lost to outright fraud.
• According to the Administration on Aging, the United States Accounting Office estimates that $1 out of every $7 spent on Medicare is paid inappropriately due to error, fraud or abuse.
• This results in higher taxes to support federal health care programs.
• This results in higher private health insurance premiums.

And don’t forget about the uninsured.  The number of uninsured continues to rise.  This increases overall health care costs because the uninsured are less likely to receive timely preventive care and are more likely to be hopitalized for avoidable health problems, which results in more costly treatment and services.

I’d love to hear some of your opinions on why you thing These are some of the reasons why healthcare is so expensive.

John Conner
www.JohnConner.com
800-700-1246 - office