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How The Lack Of Government Intervention Is The Reason For Spiralling Healthcare Cost In The United States

1246 words - 5 pages

HOW The LACK OF Government INTERVENTION IS THE REASON FOR SPIRALLING HEALTHCARE COST in the united states.

Healthcare costs have been increasing all over the world. The United States has by far the most expensive health care system in the world, based on health expenditures per capita, and on total expenditures of gross domestic product. Expenditures in the United States on health care surpassed $2.3 trillion in 2008, more than three times the $714 billion spent in 1990. Factors which lead to the spiralling cost in healthcare in United States include the lack of government intervention, the ...view middle of the document...

The government’s purpose of leaving the healthcare system to free market forces was to increase the quality of services while keeping the prices low. This will happen as there will be competition for customers. However, that was not the case for the healthcare system in United States. As the people in United States are covered with insurance, be it the employer-sponsored insurance or individual insurance, they will require for the best treatment they can get. Thus, they will look for hospitals with treatments that are expensive as the price determines the standard of healthcare a place has. Although the hospitals that offer cheaper prices will be able to cater to the people who are not insured, they will raise their prices to attract the majority who are insured.
Also, because of free market forces, companies want to maximize profits. In this case, it meant raising the prices of treatment. The choices for treatment are very limited as healthcare treatment is not as readily available like the food industry. Industries that are readily available tend to lower their prices to compete with other companies, which explain the benefits of free market forces. However when services are not readily available, they will constantly have a flow of customers which allows them to have the choice of increasing the price to maximize their profits. Likewise in healthcare, instead of lowering the prices, it is more beneficial to them to raise the prices. As a result, parties involved in the healthcare industry will increase the price of the treatments to maximize their profits. Therefore, the trend of increasing prices to attract the majority of customers with insurance will continue which results in the spiralling cost in the United States. Moreover, the origin for such a trend begins with the lack of government intervention. Due to the lack of government intervention, there was little integration and coordination between different parties involved in the healthcare system. This lack of coordination has allowed the companies to raise their prices constantly to attract consumers. Therefore, the lack of government intervention has contributed to the spiralling healthcare cost.
Another factor which leads to rising health care costs in US is the lack of personal responsibility. Because of the lack of personal responsibility, the Americans have bad lifestyle, do not seek early treatment, and refuse to buy insurance despite being able to afford it.
In America, 30.6% of the people are obese. This is due to their unhealthy lifestyle. Most Americans have sedentary lifestyle and use automobiles everywhere they go. As a result, most people lack exercise. Also, the food they consume are oily or...

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