Rising Health Care Costs: What you need to know

North Americans pay more than one and a half trillion dollars for medical care each year and costs associated with all types of health care, such as prescription medicines, continue to increase at an enormous rate. While some of the reasons behind this booming bill are understandable, Americans caught in a cash crunch may be amazed to learn some of the lesser-known reasons for high health care costs.

The phrase health care could conjure up images of doctors, nurses and hospitals, but the reality is that the medical field is an industry and a pitiless one at that. Individual practitioners, researchers and participants may have marvellous intentions and a genuine need to assist people, but the structure of the American health care system guarantees profit is the first issue of importance.

Here is some information that may help explain the high costs of U.S. health care:

Pharmaceutical research and development companies spend roughly $20 billion every year on Research and development, and about the same sum on advertising and self-promotional merchandising activities.

Additionally, drug companies have as many sales people as there are doctors in america. One of the duties of this sales force is to convince doctors to go to their company-sponsored seminars where drugs are showcased.

According to some economists, the purchase of new technology is responsible for more than fifty percent of new health care spending over the previous three years.

Much of the money US Citizens pay for health care finds its way into the increasing profits on health care-related products and services such as the provision of medical insurance. Even higher costs have been forseen for the future, especially for prescription drugs.

For numerous United States Citizens who are not able to afford the health care they require, spiraling prices symbolize an ever-increasing impedance to medical services and merchandise. The financial effect is also felt on the larger national scale with about fifteen percent of gross domestic product going toward health care costs. That is equal to around a quarter of the yearly federal budget.

Comparatively, Canada invests around ten percent of its Gross domestic product on its public health care program. Unlike the US, Canadas health care program is universally available to all citizens and permanent residents without cost. Other countries, such as Germany, where there is a public/private delivery system model for health care, manage to serve their populate for even less whilst still having better longevity than United States Citizens. This proves that the quality of health care does not increase proportionally with the amount of money spent to achieve it.

While many Canadians supplement their overall health care with added insurance to the cost of medication and benefits such as semi-private or private hospital rooms, health care insurance is much more necessary in the United States. Unfortunately, costs have been spiraling dramatically, making health care insurance unreachable for many Americans. Presently, more than 40 million Americans don't receive any variety of health care benefit.

For employers, providing health care insurance for workers is also becoming increasingly expensive, with increases dramatically outpacing inflation rates. Some years, the difference is four or six fold. Even if premiums were to remain unchanging, offering health care insurance to workers still costs several thousand dollars per worker. For smaller companies, or for those that employ a large number of people, these costs can be prohibitive.

Measures to cut down health care costs are always under consideration, though many are not popular options. Suggestions that have been raised by various sources have included:

Increased drug awareness and training. Millions could be saved if health care insurance covered only generic variants of drugs that have been proven just as effective as their more expensive brand name counterparts.

End expensive treatment choices will only add a short period of time to a patients life, especially if it will not be quality time (i.e. patient is in a coma).

Promote preventative care such as smart lifestyle options, correct nutrition and exercise.

Analyze ways to control drug advertising to consumers. There is conjecture that advertising has led to prescriptions of non-necessary drugs.

Restrict malpractice liability so doctors and medical professionals do not feel pressured to cover themselves by ordering unneeded tests to confirm conditions they already know to be present.