Three reasons why healthcare spending is expected to rise in the next ten years.
Historically, the national healthcare spending has been growing at low rates. However, the spending is expected to rise in the next ten years.
The first reason why healthcare spending is expected to rise is the economic recovery. The recent economic recession lingering effects are among the causes of the current slow rate of national healthcare expenditure. The sluggish economic recovery has also been one of the major factors for the slow growth in the national healthcare expenditure presently and the recent years (Young, 2013).
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The second reason why healthcare spending is expected to rise is the ageing of the population. Medicare will account for one of the largest part of the national expenditure (Pear, 2008). As the economy of the country gets better, the population is also ageing. The ageing population will require drugs that are funded by the Medicare program. Since most people are not in the Medicaid program, the Medicare program will be the main program in which the national healthcare expenditure will go to.
The third reason is that President Barack Obama’s health care reform laws add millions of people to the health insurance rolls. The law which is also called the Affordable Care Act is expected to start in 2014 and it will cut the ranks of people who are not insured by 25 million by 2023. The spending from the Obama care reform law will increase the health expenditure by 1.6 % beginning next year (Young, 2013).
Three strategies a manager could use to decrease health care costs and explanation on how each would decrease health care costs.
The first strategy is to go through the insurance marketplace and decide in the competitive proposals. It is always wise to get a health professional insurance broker or a consultant from outside the insurance market who can provide good advice besides the major health insurance providers.
The second strategy is to have several health plan options based on different levels. Currently, more than 75% of all organizations provide several health plans done by a single carrier for the employees. This strategy offer an organization options to both fix the cost of the insurance and providing options to employees simultaneously.
The third strategy is combining the different lines of health insurance into a single carrier. The strategy is to get discounts when purchases made are more than one line. Significant savings can be realized from the combination of premiums.
One change I can make in my lifestyle that could help reduce my health care costs either now or in the future
Adopting good healthy eating living and eating lifestyle so that I can grow and maintain good healthy. I must take control of my own health by deciding on what to take and what to avoid. For instance, I should learn to avoid smoking and gaining too much weight. The objective is to avoid diseases such as cancer
- Hub international. (2013). 10 Ways to Decrease Employee Health Care Costs. http://dentalpractice.hubinternational.com/
- Pear, R. (2008). Health spending in U.S exceeds $2 trillion for first time. Retrieved March 27, 2014 from http://www.nytimes.com/2008/01/08/world/americas/08iht-health.4.9083459.html?_r=2&
- Young, J. (2013). Health care spending continues to rise slowly ahead of Obamacare expansion: Report. Retrieved March 27, 2014 from http://www.huffingtonpost.com/2013/09/18/health-care spending_n_3948568.html#slide=825293
