Top 10 Trends in Health Care Spending | Simplefill
Health care spending has increased significantly nationwide in the past few years, and several key factors are behind this surge in costs. By understanding the top 10 trends shaping this spending, you can better understand what to expect from the industry in the coming years.
Top 10 Trends in Health Care Spending
1. Hospital Care
The most significant amount of spending in health care goes to hospital services. Together with physician services, hospital care makes up almost half of all health care spending each year.
Hospital care is a major source of out-of-pocket expense for consumers, and there’s been an uptick in the need for emergency services because of the high costs associated with regular management of chronic conditions like diabetes.
2. Physician Services
Higher insurance coverage has led to an increase in customer use of physician services in recent years. The growth in this sector is close to matching that of hospital care. One of the issues that leads to greater spending when dealing with physician services is that providers are paid for the volume of the services they offer and not their outcomes.
Additionally, more practices are relying on advanced technology and complex diagnostic tools, including artificial intelligence. This increases costs significantly because of implementation expenses.
3. Telehealth Services
Telehealth services allow people anywhere in the country to receive care. This is vital in underserved locations, which have been hit with provider shortages in recent years. The implementation of these services has been costly, however, and has required meeting specific privacy parameters with new technology.
4. Preventive Services
To prevent serious conditions like cancer, there has been a push to broaden preventive services. These include screenings and assistance with making lifestyle changes. As a result, more people are seeking regular tests to catch conditions early, and this does mean higher costs.
5. Prescription Medications
An aging population that faces multiple chronic conditions, such as COPD and high cholesterol, has also led to significant medication spending in recent years. The prices that pharmaceutical companies set have mostly remained unchecked, hiking the impact of prescription medications on overall health care spending.
6. Home Health Care
Health care providers are actively looking to add more convenience in how they offer care as well. This has led to an increase in spending on technology for mobile workforce management, AI scheduling, and on-demand appointments.
7. Health Tracking
Health tracking technologies include wearable ECG and glucose monitors, along with smart bandages that track wound condition and biometric identification options. These innovations promise more private and efficient care, which has led to spending on new developments.
8. Nursing Care Facilities
With a population aging rapidly and many still unable to access preventive services, nursing care facilities continue to contribute to the total spending. More people need this type of care, which relies on skilled medical professionals and specialists, making these services a large portion of the national health care spending.
9. Government Administration
Everything related to insuring individuals with programs like the Centers for Medicare & Medicaid Services (CMS), along with funding agencies like the National Institutes of Health (NIH), falls under the umbrella of government-related health care spending.
10. Health Insurance
This spending refers to the difference between the amount paid in benefits and what insurance companies receive from premiums. These costs include administrative services, premium taxes, and other similar fees.
Get Affordable Access to Prescription Medications
Simplefill is a full-service prescription assistance company that researches, qualifies, and maintains patients’ enrollment in all sources of assistance available to them.
Apply today by calling 877-386-0206. A caring Simplefill representative will contact you within 24 hours to discuss your application and, if qualified, enroll you in the program.
Frequently Asked Questions
With Medication Costs So High, How Can I Afford My Prescriptions?
If you are struggling to afford your medications, one of your options is to turn to prescription assistance programs. These help you find the discounts you need to afford your treatments.
What Are the Most Significant Expenses for Hospitals?
Labor costs are typically what make up the largest portion of spending in hospitals. Provider shortages have made this worse, since hospitals must offer more incentives to attract the professionals they need.
Can Legislation Help to Lower Medication Costs?
Yes, legislation could help lower costs. Currently, March in Rights could affect prescription costs.
The Biden administration also passed the Inflation Reduction Act, which gave Medicare the chance to negotiate prices for certain medications. The list of impacted drugs continues to expand.
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