Prices of commodities are increasing. Likewise, the cost of health care goes along with this trend. A lot of issues have been tackled blaming different factors, giving out reasons for the continuing increase in health care of our society. For many years, the physicians have been singled out as the main reason for the high cost of health care. People will blame them for the professional fees, saying it is overcharged. However, let us look at the picture more closely and see other factors that affect the escalating cost in health care.
The Cost of New Technologies
Medical practitioners are not the only aspects of health care costs. One of which is the continuing innovation and discoveries of new technologies and equipments for cure and procedures. This is something very important that one has to look into. Advance technologies for treatment are only available in certain areas or countries which makes health care expensive.
New Research and Drug
The development of new drugs and conducting research to come up with a cure for certain and new diseases entails a huge amount of expenditure. Research will mean more sources for study to make it successful. Coming up with a cure, a drug or treatment method will take a lot of time, effort and monetary funds. Plus the marketing of these new discoveries will also entail additional costs.
This is undeniably just one of the factors that cause high health care cost. Accordingly, physicians in the US are compensated higher than the physicians from other countries. This is because they spend more on their medical education and malpractice insurance.
High Administrative Expenses and Hospital Cost
Most administrative cost makes up 20 to 30% of the health care cost. Hospital expenses also take up the cost of health care.
Insurance takes a big fraction in the health care cost. The rising cost of health insurance leads more consumers to go without coverage. The increase in health care expenses has caused insurance companies to increase premiums in order to provide higher coverage.