Factors That Dean Baker Says adds to Rising Health Care Costs

Factors That Dean Baker Says adds to Rising Health Care Costs

Dean Baker pointed out that the United States spends more per capita on healthcare than any other wealthy country. This service, no matter how pricey it is, does not deliver better results. He says that if US health-care costs were equivalent to those of other countries, healthcare costs would be greatly decreased. He highlighted four significant contributors to growing health-care costs. His initial point emphasis was on population aging, pointing out that a sizable portion of the population is eligible for Medicare, and that the average age of Medicare recipients is rising rapidly (Baker, 2019). Elderly individuals (65 and older) spend three times as much on healthcare as persons in their prime working years and five times as much as youngsters. Secondly, he claimed that doctors and physicians in the United States are paid twice as much as those in other wealthy countries. He revealed that, despite their high salary, doctors and physicians in the United States undertake activities that general practitioners in other countries would ordinarily conduct. Thirdly, he pointed out that the United States spends more on prescription drugs than any other wealthy country, spending more over $1,200 per person in 2017, whereas other wealthy countries spend less than $600 per person (Baker, 2019). Pharmaceuticals are so expensive because the United States provides drug companies patent monopolies, allowing them to charge whatever they want for their products. Finally, because the United States has several insurers with different policies on coverage, copays, and deductibles, hospitals and doctors’ offices must employ more staff to deal with billing (Baker, 2019). As results this contribute to rising cost.

According to Baker, the rising expense of health care in the United States is due to poor management and planning in the health sector. If the United States could control its healthcare spending, the rising cost of its services would be reduced. There is no reason to pay medical specialists higher remuneration than they are capable for providing services for.  By enabling multiple enterprises to make and provide pharmaceuticals, prescription medicine costs will be reduced. Finally, they can emulate Canada, which has a single Medicare-like insurer, which would allow providers to work with significantly fewer office personnel to deal with financial elements of health care.

References

Baker D. (February 27, 2019). Health Care Costs and the Budget https://www.cepr.net/health-care-costs-and-the-budget/

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