Rising Costs of Healthcare

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koercive

Industry HE&OR, Large Cap Pharma
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http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande

Here's an article I had to read for one of my classes on the rising costs of healthcare.

In our employer based healthcare system, how much do you think the rising costs of healthcare (insurance premiums increasing) equates into stagnant incomes vs. increasing cost of living?

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The fact that obesity epidemic is spiraling out of control in this country is a huge societal issue that people like to ignore. We've accepted the fact that we are an obese nation with the numbers increasing exponentially with time. Not only are adults being increasingly affected but so are children. What's the answer? Unfortunately mostly medication and surgery. Both of which are expensive and aren't really true solutions to the problem. This issue alone contributes heavily to the prevalence of diabetes, CVD, and cancer which are all very expensive to treat. Diabetes is going to be a huge problem. It is also the one disease that can be managed effectively preventing amputations, blindness, renal failure, heart failure, etc... All of this costs a lot of money. I wonder how much costs would be saved from the system if somehow the prevalence of obesity alone was decreased significantly in this country? My guess is a whole lot.

So how do you curb behavior for the masses? Here is one idea maybe. http://forums.studentdoctor.net/showthread.php?t=696175 Maybe providing tax incentives could be another. I think providing the resources as well as a financial incentive based on measured results is a good idea. It's not like we don't have the health professionals. There are dietitians struggling to find work. Why is that when society needs them now more than ever. They are an inexpensive resource. I think more of an interdisiplinary approach needs to be taken into account and more thinking outside the box is needed. There is simply going to be way too many people requiring costly intervention driving up premiums for everybody.
 
Social engineering is a tool of an overbearing state, rarely works, and seeks to render undue control and influence over social liberties. In sum, it is a poor mechanism for influencing behavior.

If we want to encourage a healthier populace we must provide the incentive for such; this would include the penalties associated with poor choices. The current health insurance model allows for -- possibly enables and even encourages -- irresponsible behaviors. In fact, its very construct is escalatory in nature. The consumer has two levels of "shielding" from their real-time consumption; the first is the delay of cost realization in the annualized nature of premiums and the second being the disseminated risk amongst their risk pool cohorts. This shielding results in a cost oblivious consumer, diminished penalties for consumption, etc.

We must make the consumer aware of the economic burdens associated with their lifestyle and treatment decisions. In order to do this we must necessarily move away from the entitlement mentality that has been brought about through federal intervention (remember, the employer sponsored health insurance model is the direct result of ill conceived and ill fated government interventions in the form of wage and price controls). We need to return "health status ownership" back to the individual in some fashion. Failure to do so will not address the core issue... and will ultimately fail.
 
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