Question

, search the Internet for an additional article on healthcare spending trends. Write a paper of 400-500 words in which you:

1. Identify three reasons why healthcare spending is expected to rise in the next ten years. (5 pts)

2. Describe three strategies (don’t forget wellness strategies!) a manager could use to decrease health care costs and explain how each would decrease health care costs. (12 pts)

3. Identify one change you can make in your lifestyle that could help reduce your health care costs either now or in the future (3 pts)

You must find at least one source that contains information on spending trends, and another either on the same subject or on strategies for reducing costs. Provide your 2 sources at the end of your paper.

Answer 1

The trend is clear, every year the expense on health care is increasing, U.S. health care spending grew by 5.8 percent in 2015, reaching $3.2 trillion or $9,990 per person.

Many of it is not correctly tracked as several medicines are now available as non prescription drugs and people do actually expend on those and are not properly tracked as many of these are seen as general usage items but not as health care product.

Healthcare spending is expected to rise in the next ten years due to

1. Increase in pollution levels, stressful life and global warming leading to poor health facility
2. Medical facilities have been more expensive and been increasing at a rate of 5.8% per year
3. Insurance coverage for all and Obamacare leading to more healthcare exposure.

There are several ways in which managers can reduce health care costs

1. The most important of these is life style modifications in terms of nutrition, if nutrition is take care of, a diet is mentioned adhered to chances of expending on health care reduces.

So, having a list of items to eat and avoid makes life at work place easier. If the food outlets are disbursing healthy food, this helps keep employee healthy and in long run reduces health care expenditure considerably.

1. The routine of exercising, this has been stated as one of the most important reason for unhealthy life and lack of exercise is causing most of the long-term illness like diabetes, High BP, increasing stress levels etc. So, having a small gyming or exercising facility at the office helps employees be fit and so reduce on health care
2. Insurance coverage, this is an indirect way of reducing expenses on health care, it is a discounted planning for future expenses, the expenses occur but it is covered by the insurance and does not impact the cost from company’s pocket. And most of the companies include the regular out flow to the insurance partner through employee salary.

One life style change that is good to have, is exercise daily for 30 minutes and reduce carb intake from 2 meals altogether.

Source: Health expenditure, world bank http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS

www.cms.gov, The National Health Expenditure Accounts

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