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Rise of Health Care Costs - Research Paper Example

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This paper "Rise of Health Care Costs" seeks to give an in-depth analysis of the rise in health care costs in the United States of America, talking about current pricing problems, causes of the high cost and proposing various possible solutions while discussing current trends…
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Rise of Health Care Costs
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Rise of Health Care Costs

The health care cost in the USA has been on the increase in the last twenty years. In the year 2012, the health care benefit costs are expected to increase by 5.4%. This will be the lowest recorded rate in the last fifteen years (Helfand, 2011). Despite this, it is not a relief to the citizens as it is above the inflation and their salary is not increased in the same proportion. As a result, they will have to contribute more from their pockets. This is mainly because the employers have been observing this to be too heavy for them and have been passing it to the employees. This has been executed by the use of deductible plans, which are expected to be on the increase come the year 2012. In response to this, the number of employees attending health service providers has been on the decrease. This is mainly because; their total expenditure has been on the increase.
From a study conducted by the Kaiser family foundation on the trend of health insurance on employer-sponsored health insurance, it was to be observed to be on the increase. The results showed a nine percent increase in 2011 in comparison with 2010. Considering the state of the United States economy from effects of economic problems facing Europe, this is a big blow to the citizens. Furthermore, the number of unemployed persons in USA remains high. According to the businesspersons, high costs of operations and the ever-increasing health cost has been posing a great challenge to their recruitment and overall development.
The current cost of health care is double the one present at the start of the twenty first century. Despite this, the American citizens have hope in their health system (Jones, 2011). Due to the large number of health expenses encountered by companies, they usually decrease their wages of the employees in order to cater for it. In addition, the health benefits of the employees may be reduced. According to research conducted on the response of companies to increase in health premiums, it is observed that ... Read More
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