The Affects of the Rising Cost of Healthcare

The Rising Cost of Health Care Affects Economic Stability

Team A

COM/215

January 17, 2012

Vickie Horton

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The U.S. health care system contributes 18 percent or almost $2.5 trillion to the Gross domestic product (GDP). This is the highest percentage market value of all final goods in the developed world; also twice as much per person as any other developed country. Amazingly most of the expense is from the first two weeks and the last two week of life. Medical progress has evolved especially in the care of premature babies and extending the life and sustaining the life of the elderly. With progress and innovation comes a hefty expense. Another facet in how health care affects us is the rise in malpractice lawsuits. Because of this rise, doctors are resistant in taking a risk so there are more ordered procedures such as $1,000 MRIs and colonoscopies, (even if they don't really think they're needed) rather then risk getting sued because they didn't (Amadeo, 2011).

English: U.S. Health Insurance Status (Under 65)

English: Total U.S. healthcare spending. 1960 to 2...

English: President Barack Obama's signature on the...

Since the onset of the 2011 Health Care Reform the rise in health care costs is due to there being less price competition than in any other industries. This is due in fact that most people do not pay cash for health care, they pay a set fee (co-pay) though their employer provided provider and the insurance company picks up the rest of the costs. This practice means that most do not price-shop for labs, doctors, or procedures as they would for

Health Care right now represents 16% of GDP Health Care right now represents 16% of GDP Health Care right now represents 16% of GDP Health Care right now represents 16% of GDP

2011 Health...