High Cost of Health Care Essay

1118 WordsJul 2, 20135 Pages
: Sean Young Course: COMS 101 Institution: Liberty University Date: 06/02/2011 High Cost of Healthcare Health care is one among the important thing that any given economy should focus on. Reason being that an economy with healthy citizens will always in the end be counterproductive. United state is one of the countries in the world that has the highest cost of health. Currently about 19 % of the gross domestic product (GDP) is attributed to health of which the amount running to trillions of United States dollars (Shi & Singh 201). There have been several reasons that have been attributed to the rising cost health care. One of the reasons that are attributed to the high cost is the inefficiency in the department of health, which is riddled with excessive administration cost, frauds as well as waste. Whenever efficiency occurs in any field of expertise, there is always presence of people pulling strings for things to work on their advantage. The inefficiency lead to staff unjustly increasing the administrative cost and big rewards are paid for minor chaos done, this directly open doors for fraudulent individuals who are always ready to pounce an any opportunity. Secondly, there is the low Medicare as well as low Medicare reimbursement rates, the low Medicare and reimbursement rates have in one way or another contributed to hiking level of health care in the United States. Because of the above-mentioned reason, physicians are forced to make up their income they deem to have lost by charging exorbitant prices in performing more services on them. Currently the Medicare reimbursement allowable rates have been lagging far much behind the inflation rate. As a result the citizen of the United State are left to wallow in poverty and struggle in footing for the bills since the reimbursement does not in any way have any impact since the forces of inflation as pulled

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