Rising Cost Of Medical Coverage – Essay Example
The Rising Cost of Coverage In the last several years, the cost and affordability of health insurance in America has become a serious and pressing issue for the typical family. Medical coverage is surely one of the most noticeable sources of cost-of-living increases for many Americans. Despite the recent passage of significant health care reform by the United States Congress, the cost of health care will undoubtedly continue to be the greatest budgetary concern for most people in the country.
Central to the problem, from the point of view of both the average family and an individual living on a fixed income, is that medical expenses are largely outstripping any corresponding growth in the average income of the American worker. In the last decade, “[medical expenses have been] climbing at rates that exceed not only those of inflation and dollar depreciation but even the Federal government itself…they are consuming an ever larger share of personal and national incomes” (Sennholz 2006). The ability of many to keep up with medical expenses and maintain their standard of living has been greatly weakened. Seniors living on fixed incomes have had to divert more of their limited funds to pay for medicines and thus forego the purchasing of other necessities like food and clothing.
The recent health care bill will certainly help some people but its ability to do so is wholly dependent upon the Federal government somehow finding a way to overcome its serious budgetary problems. If the creditworthiness of the American government comes into question, its ability to deliver on the promises of the health care bill will be greatly hindered. Consequently, health and medical costs will continue to be a significant barrier to the average person’s ability to save money and the country’s hopes for economic recovery.
Sennholz, Hans F. “Why is Medical Care So Expensive?” 22 August 2006. Ludwig von Mises
Institute Website. 28 April 2010 http://mises.org/daily/2285.