According to the Centers for Medicare and Medicaid Services, health care expenditures accounted for 17.8% of the U.S. gross domestic product in 2015. There are a variety of factors that contribute to the increased cost and varying opinions on how resources should be allocated to account for the cost gap. One thing is certain: The United States spends an inordinate amount of dollars on health care. The strain on the economy is obvious, and health care professionals are attempting new and innovative measures to contain costs.
Based on the CMS stat, you could argue that health care spending in the U.S. has run rampant over the last decade or so. The cost of health care for employees and employers continues to climb sharply, and proper access to health care is challenging, to say the least. An article in Aging International noted that the price of health care is “on the rise and is spiraling out of control.” Cost containment is a critical factor. However, there will need to be a great deal of creativity in the marketplace to achieve savings. To determine how to regain control of costs, one must first identify what expenditures are moving the needle.
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