Where Does Most Healthcare Spending Go?

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The government’s healthcare spending has caused a lot of stir in different mediums of discussion these days. According to a study by Truven Health Analytics, healthcare spending has steadily increased for about 4.3 % every years for the past 5 years. People have become more aware of their health rights as citizens of the state and have become more inquisitive as to where their money and taxes go. With the onslaught of health care challenges, the medical industry redirects its path towards preventive health services, multiple sclerosis, childbirth and complications in surgical and medical care.


Prevention is undoubtedly better than cure and spending preventive measures would help the people and government in return because this will mean lesser possibilities of diseases. In return, there will be a dramatic reduction in the cost of paying for hospital bills, drugs and medications, and prescriptions for maintenance and recovery.

Vaccination and immunization are the leading cost drivers of healthcare spending. One would rather have a vaccine shot than acquire contagious diseases and eventually be fired from work. Since vaccination has become mandatory on companies, healthcare providers make sure that these are included in their packages. Before the mandate, the average rate of people who acquire vaccination is only 65%, and since it has become mandatory on 2009, the rate has escalated to an impressive 99%.

Cancer screenings are also one of the factors that boost the healthcare spending, mammography being a specific aspect of it. Breast-cancer screening procedures amount to $1.08 billion, not to mention $1.36 billion expense for treatment expenditures. Over the last 15 years, more than 10 million people get cancer screenings and colonoscopies every year.

Treatment on the epidemic condition of obesity is also one of the cost drivers in healthcare spending. According to a 2013 Statistical Fact Sheet by the American Heart Association, approximately 155 million Americans are overweight or obese, such an alarming and significant portion of the population. In relation to this, an estimated $254 billion is the total excess cost and if this epidemic would continue to grow in such pace, the total healthcare costs attributing to obesity could amount to $957 billion by 2030. Nearly 21% of all current medical spending has been related to obesity.  An astounding amount to the healthcare price tag has been added in this concern.

The obtaining and procuring of specialty drugs has also played a role in the budget allocation of health care so as to be able to directly target and cure the diseases and health conditions with the accurate treatment needed. Outpatient medical services and musculo-skeletal conditions are also one of the cost drivers of medical healthcare spending, the former being recognized as important because inpatient services, though expensive, only affect fewer people; with the latter condition being quite costly to be left unattended.

The government, healthcare providers and companies make sure that they provide the majority of the population with the right service that they deserve from their money. With the health care premiums eating out everybody’s paychecks, there is no doubt that one of the best things one can give to himself is the assurance of good health which would help him in maintaining a proficient work attitude in the workplace and upright disposition in the home.