Why Does Healthcare Cost So Much?

Why does healthcare in the U.S. cost what it costs? The scary truth is we really don’t know. There is a maze of factors and reasons that drive health care costs in our country. And the wide range of prices for procedures is more than troubling.

One issue that rumbles beneath the Affordable Care Act turmoil is cost. Who pays? Will the ACA increase costs? What is fair access to health care? Whatever you opinion is about the new law and its impact on all of us, one factor cannot be ignored – what does our health cost? And why?

Elizabeth Rosenthal, a physician turned journalist, has been spending a year investigating the high cost of health care for the New York Times. And her insights are worth paying attention to.

Listen to her ‘Fresh Air’ interview with Terry Gross: “Paying till It Hurts; Why American Health Care Is So Pricey.”

ACA Postponement

The ACA employer requirement postponement is big news but upon reflection, not a big surprise. Today’s news that the Administration will delay the requirement for businesses with 50 or more employees, those considered large employers, is just plain sensible.

The task to assess, monitor, negotiate health coverage, implement and put reporting systems in place is a significant undertaking. At the same time, critical yet undefined details leave cost estimates difficult to make.

Meanwhile, life goes on. How does a business negotiate a contract to deliver its services without fully understanding its costs for the contract term?

Operational practicality and limits really do matter! Good decision today.

RAH Consulting works with firms to support ACA implementation. We offer objective, data driven assessments backed with strong legal advice . Call us if you are interested in our help.