The Importance Of Health Care Cost

Health Care Cost Since 2014, health care spending have increased from 5.3 percent, $3.0 trillion, or $9,523 per person (CMS, 2014) to 5.5 percent in 2015, $3.1 trillion, or $9,695 per person (Luhby, 2015). The consistent increase on health care spending is expected to rise through the year 2024. In fact, between 2014 and 2024, health care spending is expected to increase to 5.8 percent, which is the highest percent of health spending in three decades (Luhby, 2015). By 2014, more than 19.1 million people are expected to be enrolled in Medicare as a result of the aging population. Other reasons for the continued increase of health expenditures can be attributed to complex factors to include general inflation, third party payment system and multi-payer system and administrative costs, and growth of technology and consumer demand. By 2024, health care spending is expected to account for about 20 percent of U.S. spending (Luhby, 2015).
General Inflation / Gross Domestic Product (GDP) The gross domestic product (GDP) and general inflation …show more content…
Health information technology is expensive, but we have laws that mandate the implementation of the technology. Products such as Electronic Health Records, Computerized Provider Order Entry, DaVinci Robotic Systems, and many more have not only increased the cost of health services in the United States, but have also increased the demand for advanced procedures. Yes, consumers have witnessed the benefits of technology in health care and now demand such technology on day-to-day basis. The introduction of new technology only raises the demand and also provides hope of cost containment and prolonged life. At this point, advancements of technology cannot be reversed. Technology has proved to increase access to health services, improve health quality, reduce hospital stays, and has contributed to the reduction of medical