Question

Why healthcare costs seem to be spiraling out of control. What do you think is the source of the problem and what are the initial steps to solving it?

Answer 1

Healthcare costs seem to be spiraling out of control because of following reasons:

i)Nobody shops for value:When we talk about healthcare,everyone wants and expects the best.There is no medical equivalent of Wal-Mart.Best treatment result in unnecessary cost of diagnostic tests and prrocudures.

ii)Medical Innovations are usually more expensive:The basis of medical progress is learning to do new things.In the case of pharmaceuticals,the system has been designed so new drugs are expensive.

iii)Living longer and living unhealthy lifestyle:Not only are people living longer(Which in itself increses health care costs) but too many people are living unhealthy life.

Most of people are not financially viable to afford healthcare costs.Their earning are not increasing with the speed of healthcare costs.Everyone has the right to best healthcare but the increased healthcare costs has made it impossible in these days.It is surely a problems for everyone.

This is the problem that need government intervention.Health care plans must address the issues by dscouraging patients from using expensive facilities for common problems such as a sore throat.

One solution is to use a creative plan design that identifies the most effective innovations and reimburses them with a premium.