Factors Driving Rising Healthcare Costs in the United States

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Factors Driving Rising Healthcare Costs in the United States
The complexity of the United States healthcare system significantly contributes to the continual rise in healthcare costs. Administrative expenses, encompassing billing, coding, and claims processing, represent a significant portion of healthcare spending (Grover et al., 2022). The lack of price transparency in the healthcare market poses significant challenges for consumers when making well-informed decisions about their healthcare, resulting in elevated costs. Additionally, administrative expenses related to insurance, including those tied to marketing and profit margins, contribute to the overall healthcare expenditure. Streamlining administrative processes and enhancing price transparency are potential strategies to address these cost-related issues.
Prescription drug prices continue to surge, straining both patients and healthcare systems. Chronic disease prevalence, driven by lifestyle and genetics, necessitates ongoing, expensive treatments. An aging population requires more healthcare services and resources, further adding to costs. Life-saving treatments and diagnostics from complex medical technology also increase healthcare costs. According to Grover et al. (2022), addressing these factors may involve reforms in drug pricing, preventive care for chronic diseases, and finding cost-effective ways to deliver care to the elderly.
Defensive medicine, where providers order unnecessary tests or procedures to avoid legal