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Many factors explain why US medical costs are rising. Three of the major reasons are: A) Health care provider price inflation (doctors, hospitals, clinics, etc.), B) Greater volumes of treatment, and C) The rising burden of chronic disease.
Many factors explain why US medical costs are rising. Three of the major reasons are: A) Health care provider price inflation (doctors, hospitals, clinics, etc.), B) Greater volumes of treatment, and C) The rising burden of chronic disease.
Health care provider price inflation:
Hospitals have been seeking major increases. For example:
Massachusetts Attorney General Martha Coakley reported in January that higher prices are correlated to hospitals’ monopoly power or market leverage, rather than to their costs or quality.
A current report from the Center for Studying Health System Change found that in California growing physician and hospital market clout gives providers an upper hand in demanding higher reimbursement rates and is an underlying driver of increased premiums. The report, entitled “Unchecked Provider Clout in California Foreshadows Challenges to Health Reform,” published in the April issue of the journal Health Affairs, concludes, “the trends in California suggest an urgent need for policymakers to address the issue of growing provider market strength.”
Treatment volumes are increasing:
US Dept. of Health & Human Services has just published data showing that over the past decade (to 2006/07):
Chronic disease and lifestyle-related health problems are driving demand:
Recent research from the United Health Foundation and experts at Emory University shows that on current trends, obesity will be contributing to more than a fifth of the nation’s healthcare costs by the end of the decade.
But if we act as a nation – and if obesity levels can be held at their current rates – we could save almost $200 billion dollars – $820 for every adult in the country.
Allen Gayle
Downing & Gayle Insurance
www.DowningGayle.com
8220 Creedmoor Rd. Ste. 201
(919) 841-1099
Fax (919) 848-7977 fax
