Wednesday, February 23, 2022

Why Healthcare Costs are Rising and Ways You Can Keep Costs Down


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Just when healthcare costs already feel at an all-time high, they continue to rise beyond belief. It can often feel stressful, knowing that one wrong move could leave you in thousands of dollars of healthcare debt. It is therefore a good idea to understand why healthcare costs are rising, and ways that you can try to keep the costs down as much as possible. There are a range of factors that are out of your control, such as government policy and global pandemics, but there are still steps you can take personally, that will help you manage your money and save some costs in the unfortunate event you or a family member are injured or have an accident.

Why are healthcare costs high, and rising?

America is known to have some of the highest healthcare costs in the world. Healthcare costs are directly influenced by the way the American government creates policy. However, this comprises several societal and political factors, such as the age and growth of the population, service price and intensity, and the prevalence of diseases.

Dr Fauci is an important figure in America’s healthcare system, as he is the director of the National Institute of Allergy and Infectious Diseases, and is the Chief Medical Advisor to President Biden’s Administration. The NIAID researches to support the understanding of infectious, immunologic and allergic diseases and how they can be prevented, diagnosed and treated. As the advisor to the President, Dr Fauci can advise on national issues that shape healthcare. If you wish to learn more about the individuals who shape the healthcare system, you can do so with some simple interest searches, for example, you can learn about the experience, bio and reported net worth of Dr Fauci

One of the other factors contributing to rising healthcare costs is the growth of the population. As the population size of the United States increases, and the aging of the population is also increasing, is naturally going to result in more demand for healthcare services such as pharmaceuticals, ambulances, nursing facilities, inpatient care, emergency departments, dental care, and much more. The larger the population, the more the prevalence of diseases which also need to be treated. 

While there is a positive correlation between the growing population and healthcare costs, a huge factor is the cost of services and treatments available. In a 2017 study, it was found that rising prices and intensity of services alone accounted for 50% of the overall healthcare costs. This includes the essential services a person may require, such as emergency facilities and pharmaceuticals, as well as the prevalence of innovative healthcare technology. Although this can increase the level of care provided, it also comes with more expensive costs. The Consumer Price Index (CPI) for medical care has grown at a rate of 3.5% per year for the past 20 years, while the price for average consumer goods has grown by 2.1% per year. 

Healthcare costs have been rising long before the COVID-19 pandemic, however, this factor has exacerbated the costs significantly. 

How to keep your healthcare costs down

It can seem overwhelming when you see the current state of the healthcare system, but there are steps you can take to save money on your care. Here are some of the top tips to help you get started:

  • Switch from brand medicines to generic medicines which are issued from your healthcare provider

  • Consult with an attorney (visit website) if you've been injured in a workplace accident to determine if you have a case where your employer will help cover your medical expenses

  • Follow healthcare instructions and take the full course of medication you are given to prevent further problems 

  • Catch issues early with routine appointments 

  • Seek support from a health advocate that is offered with your healthcare plan, who can help you navigate the complexities of the industry and tailor solutions to your personal preferences to keep costs low 

  • Review your healthcare plan and make use of all the offered discounts such as eyewear, gym memberships, medical devices, health tests, etc.

  • Make a plan for emergency care (where you will go, how you will get there, etc.) so you are better equipped in the event of an injury or accident, for example, it will be cheaper to get to an urgent care center or see your doctor, than visit the emergency department 

  • Consider outpatient services for procedures or surgeries that you require 

  • Use the healthcare providers that are “in-network”, this means in association with your healthcare plan, which will be cheaper

  • Choose your healthcare plan carefully and only add on the services that you require, for example, if you have a range of medical conditions, you may choose to pay the higher premium as it will work out less money for your ongoing treatments, however, if you don’t need medical care unless it is an emergency, you may choose the higher deductibles 

  • See if your employee has a healthcare plan you can use, as these usually are deducted before taxes 

  • Take steps to take care of your health as much as possible 


Understanding the healthcare costs, and what you can do to save money, can go a long way. Implement these small steps to experience more peace of mind! 


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