Healthcare

Introduction

As the cost of Healthcare continues to increase in the United States the economy is at risk. The rising cost of Healthcare has a tremendous impact on the economy. Health care expenditures causing the cost of Healthcare to rise will be discussed in this paper. Controlling health care expenditures requires a solid understanding of the factors that are driving the growth in spending. . Some of the expenditures will be discussed are Technology, prescription drugs, and the aging population. Technology and prescription drugs are leading contributors in health care spending. According to Getzen and Allen, life span and prevalence of chronic illnesses is another deficit to health care cost. Everyday more and more Long-term care and services are needed, along with treatment for these ongoing services which account for national health expenditures (Getzen and Allen, 2007). For several years, spending on new medical technology and prescription drugs has been named as a leading contributor to the increase in overall health spending; yet, in recent years, the rate of spending on prescription drugs has declined.

Technology

Technology has contributed to advancements in treatment, equipment and better delivery of quality health care. The cost of medical care is expected to consistently grow at an alarming rate as a result of better technology and the demand for more and better medical services. The trend in cost of technology increases spending expenditures as supply and demand increase.

New or increased use of medical technology contributes 40–50% to annual cost increases, and controlling this technology is the most important factor in reducing them. A key item for cost control, particularly of medical technologies, is the assessment of treatments and technologies.

Getzen and Allen believes technology has tended to increase total spending in health care because generous insurance payments and cost reimbursement have given little incentive to...