Discuss the following statement: “Health care costs are out of control in the United States, and increasing conflicts between employers and employees are likely as employers try to reduce their health benefits costs.
As compared to other different countries, health care prices are very high in the United States. Moreover, health care prices have risen very faster as compared to the annual income. In the year 2017, the health care costs in the United States were $3.6 trillion and due to this, the health care became the largest industry in the country (Boughey et al., 2017). It is equal to 17.8 per cent of GDP ( Gross Domestic Product). in 1960, the health care used up 4% of income as compared to the 6% of income in 2013. in addition to this, lifestyle changes and government policy are the major reason for the massive increase in health care costs. Chronic diseases like heart disease and diabetes have increased as well as these diseases are accountable for eighty-five percent of the prices for health care. Because of the huge number of Medicare patients the health care costs are rising day by day in the country. Apart from this, high – interest related credit card debt has been risen up to 34 percent because of the increased health care prices. In addition to this, the non- market and market factors are the major reasons for the higher health care costs because these factors which determine the pricing. In the U.S, the private and public sources offered health insurance based coverage. Besides these, the health care costs have been increased because of the ageing and growing population, patients avoiding care, lack of transparency and inefficiency, increasing health insurance based premiums, increased ambulatory prices and rise in certain chronic illnesses (Dragioti et al., 2018). As well as the health care costs are increasing day by day because of the increased prices for emergency and outpatient room care or out of pocket prices.