Why Are Health Care Costs Rising?

Unfortunately, the trend of health costs rising faster than the rate of inflation is expected to continue. Several factors have contributed to climb in healthcare costs over the past decade, including the following: expansion of healthcare providers. New government regulations. Increased utilization in consumer demand. New medical technology. Medical cost inflation. Higher prescription drug costs. Well you are unable to control the cost drivers mentioned above, you can control the health care cost drivers listed below.

1. Unhealthy Lifestyle

Treating chronic conditions account for 86% of the nations healthcare costs. Although genetics maybe a contributing factor, unhealthy habits like lack of exercise, tobacco use and poor nutrition are often times the main reasons for developing chronic health problems.

2. Prescription Drugs

Prescription drug costs continue to represent a large portion of healthcare expenditures. Making the most of your prescription drug plan by choosing generic drugs when they are available, following your doctor’s and pharmacist’s instructions carefully, and talking openly with your doctor.

3. Lack of Cost Consideration

When people have insurance that pays for the majority of health care cost, they don’t think twice about using medical services. This can lead into consumer more than needed, which in turn drives up prices.

4. Incorrect Care Setting

Choosing the appropriate place of care will not only ensure prompt and adequate medical attention, but will also help reduce any unnecessary expenses. Remember, in the event of a life-threatening emergency go to the emergency room. Urgent care centers are equipped to address conditions were delaying treatment could cause serious problems or discomfort. If the condition is not serious or causing serious discomfort, call and schedule an appointment with your primary care physician.

5. Incorrect Health Plan Selection

Selecting the right health insurance plan for your needs is critical. Lord adoptable plans come with higher premiums, well higher deductible plans come with lower premiums. Carefully evaluating your options will help you get the best value for your health care dollars.

6. Lack of End of Life Care Planning

Planning ahead for long-term or end-of-life care is critical to keeping health care cost down. It cost on average, $6235 per month for a semi-private room in a nursing home. Plan for these expenses to avoid incurring unexpected costs.

7. Low Healthcare Literacy

Over 77 million Americans are considered to have an adequate health literacy, which means that they have difficulty with common health tasks like reading a prescription drug label or making a wise healthcare decision. Low health literacy often results in higher utilization of basic an expensive health services like emergency care and patient visits, which adds up quickly.

For more information on strategies to reduce your health care cost, contact your HR department.  To download the full infographic, click HERE.

This info is to be used for informational purposes only and is not intended to replace the advice of a legal and medical professional. Readers should contact a health professional for appropriate advice. © 2017 Zywave, Inc. All rights reserved.