In 2001, Americans spent $1.42 trillion on health care, an unprecedented amount that, analysts say, threatens the country’s ability to pay for medical care.
Health care spending grew at the fastest rate in over 10 years, rising some 8.7 percent from the previous year, and economists have expressed concern that the U.S. economy may not be able to keep up with the rapidly increasing costs.
According to one report, from 2000 to 2001 health care spending rose 0.8 percent, to make up 14.1 percent of the U.S. gross domestic product. For eight years prior, health care’s share of the economy had either remained steady or declined.
Analysts say that rising costs could indicate cutbacks in the Medicaid program as well as in the amount of medical coverage that is paid for by employers. Additionally, they forecast changes in policy that will alter or stop the increasing trend.
Already, several governors have announced that benefits will be lowered or enrollment will be restricted for Medicaid and other state-run health programs for the poor.
Moreover, according to a recent survey, more than one in five companies is planning to restrict retiree benefits for current workers. The companies also reported that last year they had raised retirees’ insurance premiums by 20 percent.
Other plans include raises to insurance deductibles, copayments and out-of-pocket costs for both workers and retirees.
Attention to reforms of publicly funded health programs is also expected to increase, according to analysts, along with debate on how to add a prescription drug benefit to the Medicare program.
Prescription costs make up the fastest growing component of the health care market, as spending on drugs rose 16 percent in 2001.
Proposals to alleviate these costs include one that would allow the federal government to pay prescription costs for elderly and disabled persons who are eligible for both Medicare and Medicaid.
Another proposal, an economic stimulus plan announced by House Democrats, includes $10 billion designed to help states cover current Medicaid costs.
Meanwhile, other proposals include plans to help states control spending on prescription drugs and long-term care for elderly and disabled Medicaid patients.
President Bush announced an additional stimulus plan proposal that included $3.6 billion to help states pay for extended unemployment benefits.
According to analysts, lawmakers will likely look for ways to make the health care program more efficient beyond short-term Medicaid payments.
Reuters Washington January 8, 2003
Although $1.4 trillion is a lot, it is half the amount of what we will be spending in a few years as I posted in an article last year. Within 10 years, health care spending will double to $3 trillion.
This means that if things continue on their current course, in the next 10 years 17 percent of every dollar spent in the United States will go toward health care. Currently, the nation is spending 14 percent of the budget on health care.
The following graph shows a breakdown of health care spending:
What these increases mean to you comes down to simple economics. If you (or your employer through health care insurance premiums) spend more of your money on worthless, expensive drug Band-Aids there will be less money left over to purchase the things you really want or need in life such as a good education for yourself and your children, a home, a reliable car or vacations.
A major part of the problem is our over reliance on a system that is largely controlled by the giant pharmaceutical industry.
To get an idea of the extent of their control, consider that retail pharmacies filled 3 billion prescriptions in 2000, and prescription drugs currently account for the fastest growing section of the health care market.
This abuse is only possible because the consumer is not paying for medications anymore. It is nearly all done by third parties as this graph illustrates.
Does anyone out there really believe that Americans are getting half a trillion dollars of benefits from these drugs? Drug companies are not stupid. They have been able to change the rules so they can now market to consumers directly. It is no wonder why two-thirds of doctor visits result in a drug prescription.
What are the results of drug company ad campaigning?
Drug company ad campaigns are one of the main reasons why spending for prescription drugs is the fastest-growing category of health care expenditures.
It is also one of the major factors contributing to the reason why physicians are the third-leading cause of death in the United States, as physicians often rely on drugs to patch up the symptoms of illness, rather than seeking out the cause.
The over-reliance on these Band-Aid solutions rather than seeking out and addressing the causes of illness results in expensive hospital stays and unnecessary surgeries.
What can you do about this problem?
We are not achieving the high levels of health that we could be. More and more people do not have the energy they need to get through the day while millions of others are suffering with painful, crippling diseases because they have violated basic health principles.
You do not have to capitulate! This newsletter, along with many other fabulous resources that are now available, will help you to take control of your own health.
One of the most important aspects of optimizing your health is selection of foods that will promote health. If you haven't already reviewed the nutrition plan, I would encourage you to do so as it is one of my foundational pillars of healing.
The other major issue in taking control of your health is to address the root cause of your illness. In my clinical experience, well over 50 percent of the time this involves addressing the underlying stresses in your life. I have found EFT to be one of the most effective solutions for dealing with stress.
Often, people make poor choices in regards to health because of a lack of knowledge, and it is my vision and passion to provide a reliable source of health information that will start you on your own individual path to wellness. I hope that many of you will become involved with the process as this Web site becomes a major force for good and works toward the alleviation of disease and suffering.
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Health Spending Growing Faster Than US Economy
Prescription Drug Sales Increased By Nearly 20% Last Year in US
Nearly $3 Trillion Dollars in U.S. Health Spending is Projected
"Health" Care Spending Continues to Rise