Monday, January 26, 2009

Reasons for increasing health care expenditure

1) It's the baby boomers. Our text says that Medicaid spending covers people of all ages but actually spends mostly on the elderly and disabled. As the baby boomer generation gets older, they will use more health related services like surgeries and x-rays, among other treatments, as well as prescriptions. As a SOLUTION: I would suggest that we focus on patient primary care and continue to increase salaries for primary care doctors. Another solution is to make it worthwhile for all adults to make it to their regular check ups if they have providers for health, dentist, optometrist.
2) It's also patient apathy. Our text says that insurance companies negotiate with hospitals how much they will pay for a particular service. If the fees are to high for insurance companies to make a profit, they will pass it on to companies premiums, then the companies will pass the cost on to the consumers of their goods. In this case, employees will not get affected, especially since the employers would rather have happy and healthy employees. As a solution: I would suggest single-payer system. This way, we could continue quality through health care competition but keep the financial department out of the hospitals.

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