The Cost Of Health Care

Topics: Health care in the United States, Health care, Health insurance Pages: 11 (2150 words) Published: March 30, 2015
The Cost of Health Care:
A Problem That Concerns Everyone
Emily Chromizky
HCA 303: The U.S. Health Care System
Mary Teslow, Instructor
February 7, 2015

The cost of health care is a problem that the majority of Americans will face at some point in their lives. In America, the cost of health care is steadily rising while in other countries it is also rising but not nearly as quickly. This rising cost is causing many Americans to go without the care they need. How did we get to this point and what will we, as Americans, do about it? This is, by far, not a new problem, but it is one that has yet to be solved. In 2012, healthcare costs topped 2.8 trillion dollars, with an average of $8,915 dollars spent per person. (Wilson, 2014) The rising cost of health care is taking much more money out of the budgets of millions of Americans. (Sultz, 2012) “Health care spending consumed 42% of federal revenues and 6% of household incomes.” (Wilson, 2014) With numbers like that, many Americans are neglecting their health because they simply cannot afford it. Now that the Affordable Care Act has be enacted, it may lift the burden for some of them. “It was not until concerns over the rising cost of health care resulted in cost-containment initiatives that changed the method of reimbursement for medical services.” (Sultz, 2012) This issue is so important because it seems that the segment of population who need the most health care, the elderly, are the ones who can afford it the least. “In 2010 the elderly population, 65 and over, accounted for one-third of health spending but made up just 13% of the population.” (Wilson, 2014) Health care cost have been on the rise for some time. To find solutions to the problem of rising health care costs, we must look at what we have done in the past. We must look at the highlights of what worked and what did not to even begin to understand where to start our search to reduce the cost of health care in America. In the 1920s, the rising costs of medical care is a dramatic change, especially for the middle class. (PBS, 2000) This is probably due to all the technological and medical advancement that were being made during this time. Once the Great Depression hit in the 1930s, more emphasis was put on unemployment insurance and “old age” benefits. (PBS, 2000) As the Great Depression grew worse, hospitals began experimenting with insurance programs. The Baylor University hospital plan was not the first of these experiments, but it became the model for most plans of the time. (Sultz, 2012) Baylor is credited with the genesis of Blue Cross Hospital Insurance, which began offering private coverage for hospital care during the decade. (Sultz, 2012) (PBS, 2000) As we go in to the 1950s, the price of hospital care doubles, so those who are not employed and the elderly begin having problems affording insurance. (PBS, 2000) The only choice for these people who cannot afford private insurance is to sign up for welfare benefits. (PBS, 2000) The 1960s are often noted as being a time of unrest, but there were also things going on in the area of health care that should not be overlooked. There is concern that there is a doctor shortage, so the government to take measures to expand education of health care professionals. (PBS, 2000) Another major development that happened during this decade is that Medicare and Medicaid were signed in to law. Medicare is “a national social insurance program administered by the U.S. federal government that guarantees access to health insurance for Americans ages 65 and older and younger people with disabilities as well as people with end stage renal disease. “ (Sultz, 2012) Medicaid is the “the United States health program for certain people and families with low incomes and resources.” (Sultz, 2012) The 1970s showed a rapid increase in the cost of healthcare, due to Medicare, inflation, and more advances in technology coming in to use. “Healthcare costs are...

References: Auerbach D., Heaton, P., and Brantley, I. (2014) “How will the Patient Protection
and Affordable Care Act affect Liability Insurance Costs?” Rand Corporation
Cafasso, Ed. (March 11, 2011). “How health-reform stakeholders will be affected
by recent changes”
Demchak, C. (October, 2007). “The Elusive Health Care Consumer: What Will It
Take to Activate Patients?” www.academyhealth.org/files/issues/Activate
PBS. (2000). “Health Care Crisis” http://www.pbs.org/healthcarecrisis/history.ht
m.
Radnofsky, L. (February 24, 2014). “How the ACA May Affect Health Costs”. The
Wall Street Journal
Whitehouse.gov. (2013). “Reducing Costs and Improving Quality of Care”
www.whitehouse.gov/ERP2013_Chapter_5.pdf
Wilson, K. (July, 2014). “Health Care Costs 101” Retrieved from http://www.chcf.org/publications/2014/07/health-care-costs-101.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Health Care Costs Presentation Essay
  • Health Care Costs Essay
  • Managing Health Care Cost Essay
  • Essay about Health Care Cost Accounting
  • Overview of Health Care Essay
  • Significant Health Care Event Essay
  • Health care spending Essay
  • High Costs of Health Care Essay

Become a StudyMode Member

Sign Up - It's Free