How the Health Care Plan Costs Add Up

What makes up the federal deficit? What will the health care plan costs be by 2019? How are those costs paid? How do the exchange subsidies factor in? How about the Medicaid expansion? How about the individual and employer mandates or more appropriately the penalties for noncompliance? We have just postponed a fiscal crisis by increasing the debt ceiling which will undoubtedly be reached again in early 2014, placing the nation in the same position as we were about a week ago. Federal spending is rising to uncontrollable levels. Is there any end in sight? Can we continue at this pace? This infographic explains the costs as well as how those costs are paid, providing the full picture of estimated costs as of 2019.

Key Factors Contributing to Rising Health Care Plan Costs

Healthcare plan costs are influenced by several key factors that contribute to their escalation. One significant driver is the increasing demand for healthcare services due to an aging population. As people grow older, they tend to require more medical care, thereby increasing the overall cost of healthcare plans. Additionally, advancements in medical technology and innovative treatments, while beneficial for patients, come at a high price, pushing up the expenses associated with healthcare plans.

Pharmaceutical costs also play a vital role in driving up health care plan expenses. The skyrocketing prices of prescription drugs can strain both individuals and the healthcare system. Moreover, the administrative overhead in the multi-payer healthcare system, involving complex billing and paperwork, adds to the overall cost. The practice of defensive medicine, where healthcare providers order unnecessary tests and procedures to mitigate malpractice risks, further contributes to these escalating costs.