Healthcare Costs in the United States

BHA415 CASE 2: Healthcare Costs in the United States
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BHA415 CASE 2: Healthcare Costs in the United States
The United States healthcare system is the most expensive globally, with the cost of treatment and associated expenditure recording a significantly higher rise rate than economic growth. American patients are grappling with overwhelming financial burdens while accessing care due to the constantly rising prices for doctors’ appointments, treatment procedures, prescription medications, and monitoring care. In 2016, the nation spent $10,348 per patient, amounting to $3.3 trillion, about 17.8% of the overall GDP of the country (Schwartz & Woloshin, 2019). Projections also indicate that the current increase rate will rise to 5.5% yearly to reach $5.7 trillion by 2026. Thus, this paper investigates the various factors that trigger the rising healthcare costs in the nation and identifies policy changes with the potential of curbing the problem.
The increased prevalence of preventable diseases among an aging population is one of the leading causes of the healthcare costs crisis in America. Population trends reveal that the United States is facing the challenge of an aging population whose downside is increased demand for healthcare services due to age-related vulnerability to diseases (Bindman, 2020). The authors indicate that the elderly present with rising chronic disease rates and comorbidities that require prolonged and expensive care. For instance, Karapiperis (2018) states that the need for lengthy hospitalization, costly medications, skilled nursing, and hospice care increases the demand for resources within healthcare facilities. The challenge is that the United States population is also facing the challenge of obesity despite the aging trends. Such an aspect has created a scenario where approximately half of the nation’s population suffers from at least chronic illness, with 25% dealing with two or more similar diseases (Karapiperis, 2018). Treating chronic lifestyle diseases is expensive, considering that estimates indicate annual cardiovascular conditions treatment costs from 2012 to 2013 went as high as $316.1 billion alone (Karapiperis, 2018). Other diseases have comparatively costly treatments, including $245 billion for diabetes and $147 billion for obesity. As a result, increasing aging, obesity, and related diseases worsen the healthcare costs for the nation.
While some causes are apparent, information shortfalls emerge as a concealed cost driver that remains overlooked in the raging discourse. This gap affects healthcare professionals and patients indiscriminately. For example, Karapiperis (2018) argues that the American healthcare system lacks seamless dissemination and availability of sufficient data for facilitating effective and thorough clinical evaluations that ensure patients receive appropriate treatment promptly. The delays emerging from this gap lead to expensive diagnostic processes that demand extensive treatment (Schwartz & Woloshin, 2019). As a result, this challenge leaves patients with compromised health that require increased hospital stays or relapses, ...