Causes and Effects on the High Cost of Health Care

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Medical expenses are rising faster than the costs of any other service. They are rising at rates that exceed not only those of inflation and dollar depreciation but even the Federal government itself. In fact, they are also consuming a large share of personal and national incomes…

Introduction

The death rates are falling. There are less barbaric wars and more peace in the world at large. People are now living longer. There are many reasons for this the first being that most people are more mindful of health and wholesome living and are therefore, spending a larger share of income on health care. People are now turning towards healthful products that low fat, zero calories, no sugar added etc. An average individual now takes out more time for exercising, walking and other sports. Many people have reduced smoking after learning about the risks associated with it
In developed countries medical insurance takes care of much of health care expenses. However, critics argue that there is an ever-growing number of people (especially Americans) who are overweight or even obese, which may breed physical disorders and afflictions and finally acquire medical attention. Therefore demands in growing at a faster pace than supply of medical services. These and many more reasons have increased life expectancy overall.
When people live longer, they put a greater burden on health care services. Apart from this high population growth rates also contribute as a load on such services. Therefore, governments and private health care providers are left with no option but to increase their fees, costs of drugs and other health related expenses.
Moreover, a lot of investment is being made in this sector. ...
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