Effects of increasing cost of healthcare
The people, who are considered as the working class in society, people who are in the middle class of society. Rising cost of healthcare has affected the most because froth in health care spending is taking priority in major government; Effects of increasing cost of healthcare policies. This is not only affecting their current cost of living but also their future cost of living. This is because people are spending more on health care more than they should, which has as expected led to increase in the insurance premium on health care covers. The middle-class society is currently more concerned with their current state of health that they are foregoing saving for future purposes which is a worrisome trend in society. (Snyder 2015)
Rising cost of health care has seen the government spend more on health and the cost of health near double in ten years right before Obama Care was implemented. During the financial recession, the health care industry was the only industry that did not suffer much as compared with other industries. This is because the cost of health care has been rising and the government has been spending more and more in health care which gave the industry some reserves to withstand the financial crisis of 2007. (Snyder 2015)
When the cost of some products increases, they can be avoided through abstaining from them through the use of pother unconventional methods. The rise of the cost of gas directly affects an individual as it reduces the amount of goods one can buy, or they can reduce the cost of gas through car pulling and the use of public transport. This is largely because gas has other alternatives. Healthcare as a product doesn’t have substitutes or a way that one can avoid the cost of health care(Komisar 2013). Living organic is quite expensive, and this is although a factor in as a cost of health care. It thus means that the cost of health is unavoidable, and it does not only affect the spending of an individual but it also affected the income of a family.
With the incorporation of technology in health care, the cost of health care has relatively shot up and as the government tries to popularize the notion that health care ( Effects of increasing cost of healthcare )has improved, it is, in fact, the other way round. While the mechanism and the technology of providing health care have improved, the same cannot be said for the product. Life expectancy in 2009 was one year more than a decade earlier. This was significantly lower growth compared to the life expectance of other developed countries. This meant that the rise of health care cost in the United States did not give the workers more time to work or enjoy their retirement benefits as projected.
The cost of health care insurance for families has increased by an approximate $4000 in a year meaning that families have less and less to spend on other goods. This has led to families denying themselves some products for the sake of health care which is an effect of rising cost of living.
The United States population is growing more and unhealthier and at the same time older. It is very hard to see suppliers not exploit an increase in demand and thus nor increase the cost of products. The United States population is worrying when it comes to the health status. Recently a poll conducted found that one in every seventeen children is obese. This means that they are at risk of contracting come heart-related diseases or other chronic diseases (Komisar 2013). Health providers are planning for this by coming up with treatment procedures for these conditions well in advance but at the same time they are charged at a higher rate. This means that the people have to spend more and more on health care to get the goods. The old population is also living on retirement benefits which have led to the government increases taxes and also the cost of Medicaid that is gotten directly from the salary through taxes (Snyder 2015). Unlike in previous years where health care funding from the budget was from taxes, to fully find, the government is using taxes and also borrowing to provide health care products. (Merhar 2014)