The Reasons for Rising Healthcare Costs in the U.S.

Imagine, for a moment, walking into an electronics store 10-15 years ago. Items such as smartphones, flat-screen televisions and laptop computers (which were probably less efficient than today’s models) were likely two-three times as expensive as they are in the current market. Yet if you fell in the store, broke your leg, and had to be rushed to the hospital, you would have paid less for the care that you received then than you would for similar treatment today. 

Why the diverging patterns? Electronics providers (as well as those in most other industries) will typically take their technology and/or products and improve them while also making them more affordable for consumers. The healthcare sector, on the other hand, is one of the few industries where the price for services rises as treatment methods improve. How are these cost increases felt? Well, if you’re an employer, they mean having to pay more for group healthcare benefits plans. If you’re a consumer, they make it more difficult to afford reliable medical insurance. 

Factors Influencing Healthcare Costs

What are the reasons behind these skyrocketing healthcare costs? There are many, each of which, while distinct and separate, directly influences the others to cause prices to rise. They include: 

• The fee-for-service reimbursement model: Healthcare providers, for the most part, operate in a system where they are paid for every test, study or surgical procedure they provide. This, in essence, gives them every incentive to overtreat patients in order to adequately recoup their costs. 

 

• High-priced medications and devices: Pharmacy companies and medical device manufacturers are putting much more money into marketing than they did in the past. That contributes to rising healthcare costs by them charging providers more for their products, while at the same time, incentivizing clinicians to use them. 

 

• Malpractice costs: Factors such undue influence from external parties (such as medication and supply companies) on a patient’s treatment help contribute to an increase in medical malpractice claims, which in turn, requires physicians to pay more in malpractice insurance. This rise in price as well as the added scrutiny doctors face has served to both deter people from seeking careers in healthcare and prompted many practicing physicians to retire early.  

 

• More patients seeking specialty treatment: The decrease in available family practice physicians has forced many to seek treatment from specialty providers. These doctors may have a greater tendency to perform tests and prescribe treatments that are both costly and often unnecessary to address common health issues. 

How Are Insurers Responding? 

Some health insurance companies have taken a proactive approach to addressing rising healthcare costs by focusing more on health management, offering consumers incentives such as lower premiums for healthy practices and high-deductible plans while ensuring providers complete reimbursement for services meant to keep patients out of the hospital, such as preventative visits and telephone consultations. For more information on plans employing such methods to keep costs low, contact us at (707) 823-3689, and subscribe to our blog.  

Depending on the type of health insurance plan you have, you may be required to have a primary care doctor. However, even if you are not required to have one, finding the right primary care doctor can help you enjoy better health and avoid unnecessary emergency room visits. 

Primary care doctors act as your first contact with the health care system, which can make the entire system much more accessible. They will also be able to address most of your health care needs to ensure that you are getting the care that you deserve. If you need to see a specialist for any reason, they will work with you to better coordinate your care. 

According to the Institute of Medicine, primary care is “the provision of integrated, accessible health care services by clinicians who are accountable for addressing a large majority of personal health care needs, developing this extended partnership with patients and practicing in the context of family and community.” Studies have shown that in areas that have more primary care, health outcomes are much better and at a much lower cost. The people in these areas are much less likely to be hospitalized, and there are lower death rates for heart disease, cancer, and stroke. 

Primary care doctors work to treat people, not specific diseases. This leads to continuous, comprehensive, and compassionate care throughout your life, no matter what you are facing. They work with you and will be your advocate throughout the entire health care system. Having a primary care doctor that you are comfortable with can help to ensure your health for many years to come.

For all of your health insurance needs and to ensure that you have access to the best primary care doctor, contact Sackett & Associates Insurance in Sonoma County, California. 

Hospital stays can be a very frightening and stressful time. The cluttered, noisy hospital and operating rooms do not help to alleviate any of the stress. Luckily, many hospitals are deciding to start redesigning their rooms to help patients feel better during their stay. 

New monitors that are used to display breathing rate, oxygen saturation, pulse, and electrocardiogram waves are getting much less intrusive than earlier models, while also working to produce much better data. The monitors are going wireless and streaming the information straight to the smartphone of the nurse who is watching the patient. The Baylor Research Institute in Texas has also installed video cameras and a live feed of vital signs in the intensive care and stroke units of many of its affiliate hospitals to help better monitor patients. 

New hospital rooms are going much further than just the new, advanced technologies that are going into each room. The rooms are being designed to have more space, as well as hand washing areas at the entry to each room. There will also be designated areas for caregivers, patients, family, and others who are visiting. Many hospitals are also looking to include reclining chairs to help get patients up and out of the hospital bed.

The new changes that hospitals are looking to make will also help with the delivery of medications on time. Inpatient medications will have barcodes on them to make sure that each patient gets the right amount of medication at the right time of day. The medications will then be delivered directly to each patient without stopping at the nurse’s station to help cut down on the timeline of medication delivery.

For all of your health insurance needs, and to ensure that you have access to the newest hospital designs and technology, contact Sackett & Associates Insurance in Sonoma County, California. 

While you may think that the stores are full of red hearts for Valentine’s Day, February gives you another reason to celebrate your heart – American Heart Month. American Heart Month is celebrated in February as a way to bring attention to heart disease and remind people of simple ways that they can keep their heart healthy.

Heart disease is the number one killer of both men and women in the United States. It is also one of the leading causes of disability, which prevents many Americans from enjoying time with their family and friends. Knowing how to prevent heart disease can help to ensure that you are able to enjoy a life full of fun and excitement. Keep these healthy heart tips in mind to keep your ticker working its best. 

• Work with your doctor – get a regular checkup at least once a year, even if you feel completely fine. Your doctor can check for any issues that can increase your risk of heart disease.
• Keep an eye on your blood pressure – there are often no symptoms associated with high blood pressure, which means you may be suffering from it without even knowing.
• Make healthy choices – healthy meal choices can help you stay healthy and avoid heart disease. Pack your plate full of fruits and vegetables and limit your sodium intake as much as possible. 
• Exercise regularly – regular physical activity can help you maintain a healthy weight and keep your cholesterol and blood pressure low. You do not have to spend hundreds of dollars on the gym to get your exercise in. Small changes like taking the stairs instead of the elevator can be enough to get your heart pumping. 

For all your Sonoma County health insurance needs and to ensure that you stay healthy, contact the insurance professionals at Sackett & Associates Insurance Services.

Election time is here, stressing the importance of explaining why voting no on Prop 45 is extremely important. Prop 45 will be on the November state ballot, therefore, it is important that you understand why we want you to say NO! 

If passed, Proposition 45 would give one state politician the power to control health insurance costs in a way that we cannot allow. This single politician would have the ability to control costs, coverage, co-pays, and the network of health insurance for both individuals and businesses. Additionally, this single politician would be able to determine which treatment options are covered under your health insurance policy. Why would someone with no professional medical background be the game changer of our treatment options? 

Obamacare was put in place to provide Americans with affordable health insurance solutions, not more expensive ones. Now that Americans are required to obtain health insurance or be faced with a penalty, it is imperative that we keep health insurance costs at a rate that everyone can afford. Proposition 45 would establish an expensive state bureaucracy that will make health insurance short of affordable. 

Join the individuals, businesses, hospitals, doctors, labor unions, and insurance brokers in the fight to vote NO on Proposition 45! 

Vote NO on Prop 45! Contact Sackett & Associates Insurance Services in Sonoma County for all of your California insurance needs. If you want to know more about why we suggest saying NO to Prop 45, feel free to give us a call. 

Most people contribute the increase in costs of healthcare to higher pay for doctors’ services. Although doctors are getting more for their services today, this actually accounts for a small percentage of increased medical costs.

Upon further review of healthcare expenditure data, it seems that quite a few other factors are contributing to the rising cost of healthcare. These factors include:

• medical technology
• hospital expenses
• administrative costs
• lifestyle choices and
• chronic diseases

Medical technology such as the use of electronic health records is making a dent in the healthcare budget, accounting for almost half of the growth of health expenditure. In 2010, hospital costs accounted for almost 31% of medical expenses. Bad lifestyle choices, such as smoking, drinking, poor diet and lack of exercise, can lead to chronic diseases which also up the cost of medical care.

By acquiring adequate healthcare insurance, you can help offset the increase in costs of contemporary healthcare. For information on healthcare insurance and costs in Sonoma County, CA, contact Sackett & Associates Insurance Services.