Why Healthcare Costs are Rising

Discussion in 'Healthcare/Insurance/Govt Healthcare' started by Toro, Jul 18, 2009.

  1. Toro
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    Toro Diamond Member

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    Spending on pet healthcare have actually grown faster than on humans.

    [​IMG]

    Why are all healthcare expenditures rising? Because new innovations cost more.

    Greg Mankiw's Blog: Keeping Animial Spirits Alive
     
  2. Oddball
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    Oddball BANNED Supporting Member

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    You mean that even though the costs have risen, we're getting more value for the money?!?!?!???

    Well, I'll be dipped!! :lol:
     
  3. auditor0007
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    auditor0007 Gold Member

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    There is no argument that a good portion of the increases in healthcare spending are due to new innovations and technologies that have helped extend the lives of most people. The problem is that the rate of increase is unsustainable financially. Based on the rate of growth over the last twenty years, if we continue at that same rate, we will eventually spend more than 100% of GDP on healthcare.

    There is a limit as to how much a society can spend on healthcare, and we are reaching the breaking point. As costs continue to rise, we will see more and more Americans without insurance or some type of healthcare coverage. So fewer and fewer people will actually use or be able to pay for all these advances. This in turn will increase costs even more for those who can afford to pay until they can no longer afford it either. In the process, many will actually see the healtcare available to them become even more limited, and eventually we will begin regressing instead of progressing when it comes to our overall health and longevity.
     
  4. editec
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    editec Mr. Forgot-it-All

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    Why is HC caost rising?

    Supply and demand is the primary reason.

    Not the only reason, of course, but the major factor leading us to this state.
     
  5. code1211
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    code1211 Senior Member

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    I think the reason that the costs are increasing is because there is no incentive for them to decrease. There is no WalMart alternative to the Macy's care available.

    If a doctor tries to give care on the cheap, he is liable to be sued. Walk in clinics are plentiful on college campuses with inferior care and no charge. Where are these in the general public? Non-existant due to regulation.

    With insurance, no interest in the cost is the norm. Just make it stop hurting.

    Supply and demand would bring forth hospitals stating the cost of an appendectomy, for instance, the way Eye Glass providers state the cost of an eye examination.

    Health insurance is far more pervasive than is Vision.

    The cost of our health insurance is high precisely because there is no competition in the health industry. There is competition in the Health Insurance industry already. Fierce competition.

    As always, the government sees a problem and tries to fix it by doing something that is unrelated to the cause.
     
  6. Toro
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    Toro Diamond Member

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    The cost of old healthcare technology is rising. If one wants to have the same healthcare as they did in 1980, it is far cheaper now to do so than it was 30 years ago.

    But if you want 2009 healthcare technology, then it is more expensive.
     
  7. editec
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    editec Mr. Forgot-it-All

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  8. MaggieMae
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    MaggieMae Reality bits

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    I read this shocking blurb in THE WEEK and went in search of sources, finding many, and one link is posted below. A major part of rising health care costs would appear to be the skyrocketing costs of medical school and the salaries new doctors can expect (bearing in mind the student loans most need to face for years into the future). The second part of this particular scenario of course is that these 'new' doctors will seek out the best paying jobs, which are no longer found in family practice.

    From THE WEEK, 07.17.09

    "Since 1997, the numer of medical school graduates going into pediatrics or family medicine has dropped by 50%. New doctors are opting instead for specialties such as orthopedic surgery, which pays an average of $480,000 a year, instead of pediatrics, whh pays $171,000." [Dallas Morning News]

    Study Links Primary Care Shortage With Salary Disparities

    So this leaves the unanswered predicament: People continue to suffer the same type of ailments that don't require high tech resolution, yet finding physicians to treat, say, bronchitis probably winds up costing (someone) as much as if he were being treated for cancer.
     
  9. Oddball
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    Oddball BANNED Supporting Member

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    Funny thing is that the same model applies to color televisions and CD players and computers and on and on.

    It's as though my econ 101 teacher actually knew what he was talking about!!
     
  10. Toro
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    Toro Diamond Member

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    Actually, I see a typo.

    Fixed.
     

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