What does all of this cost? Essay

Custom Student Mr. Teacher ENG 1001-04 18 May 2017

What does all of this cost?

In today’s complex and fiscally profound health-care system, the majority of the cost-burden continues to weigh on private health-insurers, who are presently spending an enormous amount of capital to a very small number of beneficiaries, capital which might be otherwise directed in order to increase profitability. Although public money is used to off-set a portion of the overall health-care costs in the U. S. , private insures comprise well over a third of all health-care spending.

Additionally, the exact disposal of these monies is of a dubious statistical result; when analyzed, health-care costs in the U. S. not only exceed — overall — the health-care costs of other industrialized nations, but the distribution of health-care costs in the U. S. is enormously lopsided, with over fifty-percent of all incurred health-care costs being used to treat only five-percent of the overall population. Costs associated with health-care in the U. S. lean heavily toward costs associated with hospitalization and physician care, (Kaiser). Some key points for consideration:

In 2004, almost half of all health care spending was used to treat just 5 percent of the population, which included individuals with health expenses at or above $13,387 *Spending on hospital care and physician services makes up just over one-half of health care expenditures. While spending on prescription drugs accounts for about 10 percent of total health expenditures, its rapid growth in the last decade (not shown) has received considerable public attention. *Private health insurance is the largest source of health spending, accounting for about 36 percent of health spending. (Kaiser)

Overall, a comparison between private insurers and medicare demonstrates that private insurers spent a much greater sum of capital in gross expenditures than public money: “In 2000 Medicare spent about $217 billion on personal health care, and private insurers spent about $391 billion”; given that the statistical count for hospital stays and physician treatment is one-half of overall expenditures, the gross expenditures for hospital treatment and physician care can be estimated to be at least 200 billion dollars annually, (Boccuti/Moon). What can be done to off-set the enormous inflation of health-care costs?

One immediate solution may be to probe the prominent diseases and health-care issues which may be preventable and which currently afflict the five-percent of the U. S. population which is receiving fifty-percent of the health-care expenditures. Private insurers will also want to examine what role preventative medicine can play in the other fifty-percent of expenditures, those spread out more evenly among the population as a whole. Considering the expansion of provided coverage to preventative medicines and treatments may ultimately off-set the high costs of patient hospitalization and extended physician care.

To this end, private insurers should begin the process of consulting with preventative medicine experts and other experts to determine exactly what kind of policies and coverage may be extended to customers. Incentives may be used by private insurers to encourage their policy-holders to avail themselves of preventative medicine or to purchase extended coverage under existing plans which will alow for preventative medicine treatments and options.

Free What does all of this cost? Essay Sample


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  • University/College: University of Arkansas System

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 18 May 2017

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