Essay on Healthcare Costs And Its Impact On Healthcare

1802 Words Sep 27th, 2016 8 Pages
During the 1990s managed care contained costs, but eventually healthcare expenditures began to rise, the ability to manage was constrained, and the consumers were disgruntled. Healthcare cost continued to rise due to technological advances and inflation. Some advances during that time included: drug therapies, increased number of outpatient visits, higher consumer demand, administration costs, government mandates, and the aging of our population (Fox & Kongstvedt, 2007, p. 14). Many companies enrolled their employees in managed care even though the workers wished to have another form of healthcare coverage, but they lacked the choice. Consumers often times had issues with getting managed care to cover their doctor visits, denials for specialties, and computer complications. Even with newer technology for processing claims and enrollments, the system could not handle the excessive workload.
After the frustration surrounding managed care, a newer form of health plans emerged. Following health maintenance organizations (HMOs) and preferred provider plans (PPOs), more employers were switching the healthcare benefits for their employees to CDHPS. Consumer directed health plans (CDHPs) were created to lower health care costs, improve the quality of received healthcare, and give the consumer the better ability to make decisions regarding their healthcare. Although there are many different forms of CDHPs, the shared thing behind them is a high-deductible heath plan that…

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