Discuss the following statement: “Health care costs are out of control in the United States, and
increasing conflicts between employers and employees are likely as employers try to reduce their
health benefits costs.
Reply_1 for Discussion 1:
According to Ahn, H. (2021)The U.S. government spends a lot of money on health care and
subsidizes COBRA premiums for laid off workers and their families. However, healthcare costs
continue to rise and the government’s national programs and policies don’t seem to be doing
anything to lower them. Health care costs are also being pushed up by short-term factors, such as
the 2020 financial crisis. Currently, the average annual increase in individual health insurance is
4.5 percent.
Among the sources of rising health care costs is the system used to measure costs. Few providers
have a clear understanding of what it costs to provide care and compare that cost to the outcomes.
Instead, costs are aggregated at the department or specialty level. This creates problems, because
patients’ health could worsen and require more costly services. This leads to increased conflict
between employers and employees. A better approach is to communicate the costs of health care
with employees and let them take responsibility for the cost of their health.
Despite rising costs, American doctors are not complaining. They are still making a lot of money
compared to other countries, with average salaries of nearly two hundred and forty thousand
dollars. This isn’t just because American doctors are paid more. Hospital services, diagnostic tests,
and administrative costs are more expensive than in many other countries. In fact, the American
health care system is far from perfect, and many experts say that the high costs of health care are
due to high utilization rates. However, in the past, Americans spent more on social programs than
in other countries(Ahn, H. (2021).
The U.S. spends more than any other country, and the growth of specialty drugs is outpacing the
growth of traditional pharmaceuticals. Per member health insurance spending increased by 26
percent from 2013 to 2014. Although retail clinics are popular with employers and convenience
seekers, they are less popular with American individuals. Retail clinics offer convenience and a
lower co-payment for procedures and tests that previously required an inpatient setting.
The government’s involvement in health care markets has led to higher costs. Government-run
health care systems often limit patient choice and fail to incentivize efficiency and patient-centered
care. Government-managed cost containment will only hurt access and quality of care. This should
be considered carefully. While the government can’t control every aspect of the health care
industry, it can help reduce administrative costs.
As a result of rising costs, many Americans are delaying needed medical care. Many people who
are uninsured have cut pills in half or skipped doses of medicine because they cannot afford them.
Those with lower incomes face greater difficulties affording care and delay seeking treatment.
They may also be reluctant to seek care because of the cost. These financial burdens are
particularly damaging for people who do not have access to insurance( Ding et al.,2021).
The government’s attempt to take over the health care industry would be a massive enterprise,
consolidating federal control of the entire sector. With a total government takeover, the health care
industry would be completely politicized, limiting the number of coverage options available for
individuals. It would also limit innovation and prevent access to high quality care. In sum, the
government’s proposed solution would do more harm than good.