You have to admit that the healthcare sector is one of the costliest systems. Health insurance is pretty pricey. The cost rate is also growing from time to time. The American healthcare system is trying to incorporate more technologies in their service and delivery in order to improve efficiency and success rate. But really, what are the factors that affect the healthcare cost?

Technology and Its Improvement

Healthcare technology is growing fast within the last 2 decades. With so many inventions and breakthrough, it is now possible to provide answers and solutions to many health conditions. Scans can be done faster. Better machines are used to detect cardiovascular anomalies or unusual symptoms. Surgeries can last faster and safer because of the supporting equipment and machines.

However, these machines are expensive. Yes, they are helping to create safer and more accurate examinations and results. But because of their high price, the cost of medical treatment is also affected. In fact, technology is the one having the most significant impact on the medical cost, contributing from 38% to 65% of the increase.

Geography and Demography

The location and also demography play a crucial role in the medical cost and its changes. Medical treatments in big cities and small towns are different. Availability and access also play a crucial role in healthcare cost. Let’s say that there is a private physician in a small town with a pretty sophisticated device. He is going to charge higher than his fellow doctors in the same area.

If the case happens in a big city, the doctor may charge the standard cost because he knows there are plenty of other doctors with the same condition as his. The changes in the patients’ age or health status may also affect the medical cost. After all, there will be a different pattern of medical spending in different condition and situation.

Market Power

Medical cost depends on market power. If the physician’s rate is changing, it will affect the hospitals and other providers. After all, each element is affecting one another. Whether you like it or not, patients need to adapt to the changes and get used to it.

Service and Healthcare Products

Naturally, patients want to get the best for their treatments. They want the best medicine. They want the best technology. They want the best equipment that can make their recovery run faster. But then again, technology is expensive. When you expect the best, you should be willing to spend more too. The more advanced the healthcare technology is, the more expensive the service will be. This also applies to the latest drugs too. If you want the latest medicine that is claimed to deliver a better result, be prepared to spend extra.

This may not be included in the most affecting elements, but health insurance can also affect the cost. Having health insurance can save your finance – at least you can reduce some of the expenses. But then again, not all ailments are covered with the insurance. Some of them only cover half of the total treatment cost.