The High Cost Healthcare Needs and wellness for Americans is high. High insurance premiums, high deductibles, co-pays, and other out-of-pocket expenses are just some of the costs associated with health and wellness.

High Cost Healthcare Needs
Cost of healthcare

Here are some of the reasons why the High Cost Healthcare Needs are rising.

Quality is not paid for in the medical field-

In most cases, health insurers, including Medicare, reimburse providers based on the number of tests, procedures, or visits they provide. This means the more services provided, the more fees they are paid.

This results in duplicative testing and over treatment of patients, even those with questionable potential to improve their health.

Medical care costs and information are lacking-

It is not always easy to understand the benefits and costs of treatment options and procedures online despite the wealth of information available.

As consumers, we would never purchase a car without comparing its features, its gas mileage, its cost, and its payment options-but yet, this is the method by which we are buying healthcare.

Health care providers and hospitals should be able to negotiate higher prices-

Reduced competition in the market has resulted in higher prices, higher productivity, and lower innovation due to increasing provider consolidation.

In some markets, near-monopolies create a situation where insurers and providers can raise prices with little competition.

Costs associated with ambulatory care increase-

All treatment categories studied saw outpatient expenses rise the most, from $381.5 billion annually to $706.4 billion annually—ambulatory care, including outpatient hospital services and emergency room care, increased by the most.

Population growth, services, and aging-

With the aging population and longer life expectancies, healthcare costs increase. For this reason, healthcare spending rises by 50% when the population expands. This increase is mainly driven by increased costs for services, especially inpatient hospital care.

It is no shock that population growth and aging are the two following most significant factors increasing such spending (23% and 12%), respectively.

Inefficiency and Lack of Transparency-

It’s challenging to know the actual cost of healthcare because there is little transparency and underlying inefficiency. People know healthcare is getting more expensive, but it’s challenging to know what you’re getting for your money with few details and complicated bills.

Rising Costs of Medicare and Medicaid-

Medical services demand has increased due to health insurance programs like Medicare and Medicaid. Unfortunately, this has resulted in higher prices as well.

The high incidence of chronic conditions like diabetes and heart disease, especially among seniors, has directly impacted the rising cost of medical care. Chronic diseases make up 85% of all healthcare costs, affecting nearly half of all Americans.


Healthcare costs aren’t solely attributable to one villain, but understanding a few of the factors can help keep you informed and aware of your options so you can make informed decisions about your care.

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