What’s causing the rising costs of health care?
Higher demand for medical services – as Americans expect more from their health care providers, health care spending is increasing at a faster pace than the rest of the economy. Higher demand and more frequent use results in more spending. Developments in medical technology – new and improved technology helps diagnose and treat various medical conditions— which has enhanced our quality of life. However, the research, development, and maintenance of new technologies are expensive and costs are generally passed down to consumers. Prescription drug costs – the fastest-growing health expense in our country is Rx drugs, which are costly to develop, approve, and market. It may take many years and millions of dollars to bring a drug from the laboratory to the local pharmacy. An aging population – as baby boomers reach middle age, they require more medical services. According to America’s Health Insurance Plans (AHIP), people over 50 use twice as much health care as those in their twenties, an
