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Money
Healthcare Costs in the US: An Overlooked Factor in Salary Considerations
Healthcare can be complicated and expensive, mostly for Americans. Rising healthcare costs in the US have become a significant concern for individuals and have also impacted the economy. Factors like rising cost of drugs and healthcare professionals and their salaries is making contribution to the rise of healthcare costs in the US. In the US, citizens are bound to pay almost four times the price of their necessary pharmaceutical drugs. Even the doctors and nurses charge more than the other countries, along with their professional salaries. Through this article, I will help you learn about the healthcare costs in the US, related fctirs and how it going to impact the economy in US. The Healthcare In The US There is no universal model US healthcare sector. Most countries generally prefer to offer healthcare benefits from the government. However, in the case of the US, the government does not have anything specific ready for the citizens in terms of benefits. Thus, US citizens rely on insurance plans. These plans help citizens avoid excessive payments for healthcare services. About half of the US adult citizens, state that it has become difficult for them to pay the huge bills and costs. Recent reports states one out of four adults think it is troublesome to pay for medical bills at least for one person in the family. The current healthcare scenario in the US is changing drastically, and I must say it is causing a negative impact on the economy. Almost one out of ten adults say that they cut their pills in half, or they decided to skip their medicine doses. The Factors That Are Driving Overall Spending Of Healthcare In this section, I will discuss certain factors that have been playing an immense role in the rise of healthcare costs in the US. The Aged Population The aged population is considered as one of the reasons behind the rise of healthcare costs in the US. As people start to age, they become more reliable on medicinal assistance and other healthcare services. This large, aged population demands good healthcare services, increasing the overall demand. This increase results in high-rate healthcare costs in the US. Increased Number Of Enrollments For Healthcare In the US, the senior people take advantage of the federal insurance program, Medicare. People who are 65 years old or above can opt for the insurance program. However, more people are becoming eligible for the programs due to the increase of aging population. Medicare also expands causing a growth in beneficiary numbers. As a result, it is causing a huge increase in healthcare costs in the US. People’s Lifestyle And Their Behavior Human behavior also plays an active role in healthcare costs in the US. Smoking, Drinking, taking substances and poor diet can lead to a bad health. The healthcare service is witnessing an increased number of patients due to such poor lifestyles. Addressing these factors can be challenging and requires huge costs in healthcare services. Advancement In Medical Innovation In the new world of technological innovation, advancements in healthcare services are also making major improvements to provide better healthcare services. However, these medical innovations and advanced systems are high in cost. So, it can be said that technological advancement is making a huge contribution to the rise of healthcare costs in the US Economic Factors The state of the economy of the United States is highly responsible for the rise in the overall cost of healthcare services. When the economy takes a downturn, some people may delay seeking care due to poor financial resources. However, when there is economic growth, industry sees a massive increase in utilization and spending. Thus, it ultimately causes a rise in healthcare services costs. The Reasons Behind Increasing Healthcare Prices Price is considered a significant driver of the overall spending on healthcare services in the US. The overall cost of healthcare services increases faster than the other costs in the US economy. As the rising cost of healthcare has become a major concern in the present scenario, let’s dive into the reasons behind the rise in cost. New Healthcare Technologies Adopting new technologies can be useful for better and more effective results from healthcare services. New innovations add more features to the advancement of the medical service. However, these Medicare technologies often come with high costs. In many cases, cutting-edge devices, various diagnostic tools, and treatments raise healthcare costs in the US Healthcare Consolidation The consolidation of healthcare often reduces competition, but on the contrary, it increases the overall price of healthcare services. However, benefits and quality care could be more extensive. From 1998 to 2017, over 1600 hospitals merged, causing a price increase of more than 20%. The consolidation between hospitals allows the Medicare bodies to negotiate the price. It is unfortunate that the consolidation prices reduce the overall competition and lead to high prices in healthcare. Other than that, the healthcare bodies also tend to negotiate under anticompetitive contracts. This kind of contract often prevents the issuers from lowering their costs, reducing the chances for competition. Administrative Waste In The Healthcare System The US government invests more in healthcare administration than any other country. However, most of these investments are in vain or wasteful. For example, the government spends money on billing and coding. These systems are complex in nature, making a contribution to the high cost. Similarly, physicians and other Medicare providers require a good amount of time for administrative tasks. They are involved in dealing with patient records, coordinating all the patients, and even doing all insurance-related paperwork. These kinds of activities divert them from patient care and add more burden on the administration. How do the rising healthcare costs in the US impact on healthcare? The impact of healthcare costs on the US population is significant. In this section, I will explain the rise in costs and their effect on healthcare costs in the US National Debt The high rate of healthcare services often leads to an increase in national debt. So, it becomes a challenge for policymakers to balance the quality of healthcare services and fiscal responsibilities. Outcomes On Health Even though there is a high expenditure on healthcare services in the US, the country still lags behind when it comes to health outcomes. The high rate of healthcare services restricts people from underdoing medical assistance. As a result, it has become difficult for the country to avoid death, infant mortality, maternal issues, and suicide rates. It is crucial for the government to take certain actions against the challenges. Increased Number Of Chronic Condition The Americans are not ready to pay a fortune for medical treatments. They avoid seeing doctors or taking pills for a better cure. The US is currently having a high rate of people with chronic conditions. This is further creating issues for both individuals and overall healthcare as well. Obesity Epidemic Obesity Epidemic has become a new normal among the US population. The increased rate of patients suffering from obesity is leading to an increase in healthcare utilization. As a result, it significantly increases the overall cost of the treatments. Physical Access In the US, citizens do not often see physicians for treatments. Unlike other countries, US citizens avoid seeing a doctor or buying pills to continue their treatments. This is why the US has a lower rate of beds and physicians per population. Is there any solution to it? The price increase is no longer limited to low-income families. It also raises questions about whether high-income families can afford healthcare services at an increased price. Certain ways can be followed to manage the price rise and help the population with better healthcare services: Evidence-based practices and reducing unnecessary procedures can help deliver the best treatment to the population. It is important to promote innovation and promote competition among manufacturers and providers. The industry can practice price-limiting strategies such as capping prices to make the services affordable. They should also enhance the overall transparency about costs and prices. The administration can also look for cost-sharing arrangements for healthcare and prices. The healthcare industry needs to prioritize the policies that can be beneficial for the population. In Summary The rise in healthcare costs in the US is causing a huge issue for the population and the economy. Even in 2022, the healthcare spending in the US has increased by 4.1%. This is a massive growth compared to before the pandemic era. The high salaries of nurses and physicians, less competition between the manufacturers and service providers, and administration are prime causes of the price of US healthcare. Thus, it has become crucial for policymakers to enhance the quality of products, manage the federal budget, and enhance pricing transparency.
Banking
Which of the Following is Not a Common Feature of a Financial Institution?
Which of the following is not a common feature of a financial institution? A) Paper checks B) Direct deposit C) Access to investment products D) Access to ATM Here, the right answer is C) Access to investment products. In any financial institution, you will find paper checks, access to ATMs, and direct deposits as common features. However, access to investment products is not a common feature in all financial institutions. In fact, you will find them in special cases where your sole motivation is investment. What Does a Financial Institution Offer? Primarily, financial institutions are at the core of modern economies. In fact, the entire strength of the economy of any country depends upon the strength of its financial institutions. Basically, financial institutions provide essential services that facilitate transactions. Apart from that, they also manage money and support financial growth. However, financial institutions may vary in size and specialization. Despite that, they share a set of common features that define their role in the financial landscape. What are the Core Services of Financial Institutions? At their core, financial institutions are intermediaries between entities with excess funds and those needing those funds. Hence, the following are the core services that financial institutions offer: 1. Deposit Taking Primarily, they accept deposits from individuals and businesses. This includes various account types like checking, savings, and time deposits. This way, they allow their customers to safely store and access their money. Read Also: How To Deposit A Check On Cash App? – Steps To Follow 2. Payment Processing Here, those financial institutions facilitate transactions through various payment methods. These include checks, electronic transfers, and debit/credit cards. In fact, this factor is crucial for economic activity. 3. Lending Financial institutions earn by providing loans to individuals, businesses, and governments. This is yet another essential activity. Basically, it encompasses mortgages, personal loans, business loans, and credit facilities. This way, they enable individuals and entities to finance purchases and investments. 4. Financial Advice On the other hand, financial institutions also offer guidance on financial planning, investment strategies, and risk management. In fact, this is a growing service of financial institutions as they help customers make better financial decisions. What are the Key Functions of Financial Institutions? Beyond the services they offer, financial institutions share certain defining characteristics: 1. Regulation and Oversight Generally, financial institutions have to comply with strict regulations and oversight by government agencies. This is to ensure stability, consumer protection, and the integrity of the financial system. 2. Trust and Security To every financial institution, building and maintaining trust is crucial. Hence, customers entrust financial institutions with their money and sensitive information. Therefore, those financial institutions ensure strong security measures and ethical practices. 3. Financial Expertise In most cases, financial institutions employ professionals with specialized knowledge. These professionals have expert knowledge in finance, accounting, and economics. This way, they manage risk, analyze markets, and provide expert advice. 4. Technology Integration In general, modern financial institutions rely heavily on technology. This way, they are able to deliver services efficiently, enhance security, and improve customer experience. In addition to that, they offer services like online banking, mobile apps, and automated systems. 5. Profit Orientation Only a few financial institutions are non-profit. In most cases, financial institutions operate with the goal of generating profits for their shareholders or members. 6. Risk Management When it comes to finances, managing risk is a core function. This is because they have to handle large sums of money and engage in activities that carry inherent risks. As a result, they employ sophisticated risk management techniques to mitigate potential losses. 7. Financial Institutions Are Interconnected Interconnectedness is one of the major features of financial institutions. Generally, most financial institutions are interconnected through payment systems and financial markets. This way, they together create a network that facilitates the flow of capital and supports economic activity. What Different Types of Financial Institutions Are There? There are different types of financial institutions. However, each has its own functions and specialization. These are as follows: Commercial Banks: As the name suggests, they offer a wide range of services to individuals and businesses. These include deposit accounts, loans, and payment processing. Credit Unions: In general, these are member-owned cooperatives. Basically, they provide similar services to banks. However, they focus more on serving their members' needs. Insurance Companies: Primarily, they provide financial protection in the form of insurance. This helps to protect against various risks, such as life, health, and property damage. Mortgage Companies: As the name suggests, these financial bodies specialize in originating and servicing mortgage loans. Investment Banks: Generally, these banks facilitate mergers and acquisitions. Apart from that, they underwrite securities and provide investment management services to corporations and governments. Investment Firms: The job of this financial institution is to manage investment portfolios for individuals and institutions. Also, they offer services like mutual funds and brokerage accounts. How Are Financial Institutions Changing with Time? Due to various technological and social developments, financial institutions are constantly adapting and changing. In fact, they are also catering to changing customer expectations and evolving regulatory landscapes. Moreover, the rise of fintech and the increasing importance of sustainable finance are bringing in big changes. Also, the growing demand for personalized financial services is shaping the future of the industry. Basically, financial institutions play a crucial role in the overall economic system. In fact, their big role in the economy helps to ensure the stability and efficiency of the financial markets. Hence, it supports individuals and businesses in achieving their financial goals. Do you want to suggest more features and functions of financial institutions? Consider sharing your ideas and opinions in the comments section below. Read Also: Why is it Important to Reconcile Your Bank Statements? Which of the Following Statements about Savings Accounts is False? External Financial Director: What Are The Benefits Of Hiring One