Essay upon Rising Medical Costs

Increasing Health Care costs

Sandra Stubbs


December 1, 2011

Evelyn Hoover

Rising Health Care costs

Some of the driving forces behind growing health care spending are Technology and Prescribed drugs, chronic disease, aging of the population, Management costs. For many years, spending on new medical technology and prescription drugs has been the leading contributor towards the increase in overall wellness spending. (Healthcare reform. gov, 2011). much longer life ranges and higher prevalence of chronic health problems. This has positioned tremendous needs on the healthcare system, particularly an increased requirement for treatment of recurring illnesses and long-term proper care services such as nursing homes; approximately health care costs for persistent disease treatment account for above 75% of national overall health expenditures (Kaiser Edu. org, 2010).

HMO's often focus on their ability to contain costs through oversight of physicians' decisions or by execution of a prescribed a maximum payment system that lines up physicians' incentives with the ones from the health-related plan. HMO's do include lower hospitalization rates and shorter clinic stays and use fewer expensive testing and types of procedures than classic health-care services. Some people also argue that the increasing use of managed proper care generates confident externalities that benefit customers enrolled in non- HMO well being plans. This kind of argument commonly invokes a few notion of market discipline, arguing that traditional insurers or health-care providers will have to lower rates to remain practical in a health care insurance market (The National Bureau of monetary research, 2011).

Maintained care repolarizes health care. What was a supply of revenue below fee-for-service becomes a cost beneath managed attention. Fee-for-service health care encourages dotacion of medical care services, whilst managed attention discourages usage of care until absolutely necessary. In managed proper care, doctors and other health care providers make a profit by...

Sources: Healthcare reform. gov. (2011, December). The expense of inaction. Retrieved by

Chef edu. org. (2010, March). U. T. Health care costs. Retrieved by

Chef edu. org. (2010, March). U. H. Health care costs. Retrieved via

The National Bureau of financial research. (2011, December). The effect of Medical planning HMO 's on spending and well being outcomes. Gathered from