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There are several factors which lead to increased costs. First, the government (both federal and state) meddle in the matter--refusing, for example, to allow policies to be offered across all 50 states. Secondly, there are now just a handful of large insurers and they routinely violate contract law and antitrust law. By violating antitrust law, the drive up costs in the markets they control and reap larger profits than they should. That is compounded by their not paying legitimate claims as well: Linda Peeno, MD testified that SHE had often denied treatment JUST to save the insurance company money (http://www.thenationalcoalition.org/DrPeenotestimony.html) Furthermore: "the vast majority of health insurance policies are through for-profit stock companies. They are in the process of "shedding lives" as some term it when "undesirable" customers are lost through various means, including raising premiums and co-pays and decreasing benefits (Britt, "Health insurers getting bigger cut of medical dollars," 15 October 2004, investors.com). That same Investors Business Daily article from 2004 noted the example of Anthem, another insurance company. They said the top five executives (not just the CEO) received an average of an 817 percent increase in compensation between 2000 and 2003. The CEO, for example, had his compensation go from $2.5 million to $25 million during that time period. About $21 million of that was in stock payouts, the article noted. A 2006 article, "U.S. Health Insurance: More Market Domination, More CEO Compensation" (hcrenewal.blogspot.com) notes that in 56 percent of 294 metropolitan areas one insurer "controls more than half the business in health maintenance organization and preferred provider networks underwriting." In addition to having the most enrollees, they also are the biggest purchasers of health care and set the price and coverage terms. "'The results is double-digit premium increases from 2001 and 2004-peaking with a 13.9 percent jump in 2003-soaring well above inflation and wages increases.'" Where is all that money going? The article quotes a Wall Street Journal article looking at the compensation of the CEO of UnitedHealth Group. His salary and bonus is $8 million annually. He has benefits such as the use of a private jet. He has stock-option fortunes worth $1.6 billion." --Save America, Save the World by Cassandra Nathan pp. 127-128 There is also the fact that of the folks who declare bankruptcy, more than half are over medical bills and 75% of those folks have insurance--so it is clear that insurance is not meeting its responsibilities because the actual purpose of it is not to pay for the "sniffles," but to be there for serious illness which can bankrupt a person. "Aldrich's situation is "asinine" but increasingly common, said Dr. Deborah Thorne of Ohio University. Thorne, co-author of a widely quoted 2005 study that found medical bills contributed to nearly half of the 1.5 million personal bankruptcies filed in the U.S. each year, said that ratio has likely worsened since the data was gathered. ... Like Aldrich, Thorne said, three-quarters of the individuals in the study who declared bankruptcy because of health problems were insured." http://www.msnbc.msn.com/id/20201807/
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What group is most responsible for the rapidly increasing health costs care?
The federal Government, Regulations on health care and pharmaceuticals cost approximately 80% of the price. So subtract 80% of the cost of health care and Pharmaceuticals and you'd be paying what the insurance companies are actually charging to insure you.........
What is the primary reason for rapidly increasing health care costs?
One big thing which has contributed to the rising costs of health care is the increased number of malpractice lawsuits. Because of this, malpractice insurance has gone up considerably for those in the health care industry, and since they have to pay more, they then pass on the costs to you, the consumer.
Increasing opportunity cost graph?
There are many ways in which you can show increasing opportunity cost on a graph. You could show it in comparison to satisfaction for example.
Why does the average cost curve fall at the initial stage then rise again?
The average cost curve fall at the initial stage due to increasing returns on variable factors of production. It then rises due to diminishing returns, which causes costs Êto rise.
In a firm where assets are the major cost how is profit maximized?
By increasing revenues or the cost of the assets.
What group is most responsible for the rapidly increasing health costs care?
The federal Government, Regulations on health care and pharmaceuticals cost approximately 80% of the price. So subtract 80% of the cost of health care and Pharmaceuticals and you'd be paying what the insurance companies are actually charging to insure you.........
What is the primary reason for rapidly increasing health care costs?
One big thing which has contributed to the rising costs of health care is the increased number of malpractice lawsuits. Because of this, malpractice insurance has gone up considerably for those in the health care industry, and since they have to pay more, they then pass on the costs to you, the consumer.
How does an aging population rise health care prices?
Older people tend to be less healthy than young people. Therefor the higher the population of older people, the more they use the health care system thereby increasing the cost of health care.
Health care of Spain?
the cost of the health care is about (((((((((((((((((((I DONT KNOW)))))))))))))))))))))))))
How much does health care of an infant cost?
Health care of an infant will cost varying amounts of money. This depends on what kind of insurance the infant has, and what kind of health conditions they may need care for. For a family of 5, health care will cost around $500 a month. For a baby, it will cost $70 alone, or more.
Is it better to have good health care at high cost for some or minimal health care for everyone at low cost?
Ask a Cuban.
How has the cost of medical insurance changed over time?
According to a July 2012 article on the website CNNMoney, the cost of medical health insurance has been increasing over time. Health care premiums have been increasing at a rate greater than that of inflation. In 2011 for example, premiums increased by 8% for individuals and 9% for family coverage.
What has the author Peter J Neumann written?
Peter J. Neumann has written: 'Using cost-effectiveness analysis to improve health care' -- subject(s): Cost effectiveness, Cost of Medical care, Cost-Benefit Analysis, Health Care Costs, Medical care, Medical care, Cost of
What has the author Erin Do written?
Erin Do has written: 'Financing health care for the uninsured' -- subject(s): Cost of Medical care, Health Insurance, Insurance, Health, Medical care, Cost of, Medically uninsured persons
Who has not Access to health care?
Just about everyone has access to health care, but if they can't afford the cost they have a problem.
What are the three different methods of cost containment and briefly describe how each method raises the cost of health care?
Three different methods of cost containment are: technological advances, the aging population, and health related lawsuits. Technological advances is raising the cost of health care because of the heart, kidney, lung, and liver transplants; transplants cost millions of dallors. The aging population is raising the cost of health care because older individuals have more chronic diseases and need more health services. Health related lawsuits is raising the cost of health care because lawsuits force health care providers to obtain expensive malpractice insurance.
What is happening to the cost of health care today?
The cost of health care today continues to rise. Obamacare makes it more affordable for people but the deductibles are high.
