I believe that the government should take the position of issuing guidance based on
cost efficiency. Healthcare spending is expected to grow 5.4 percent per year from 2019
till 2028 (Centers for Medicare and Medicaid Services, 2021). It is expected to reach a
total cost of 6.2 trillion dollars by 2028. This growth is expected to outpace gross domestic
product by 1.1 percent each year over the same time period. The healthcare cost by share
of the economy is expected to rise from 17.7 percent in 2018 to 19.7 percent in 2028.
Among major payers of healthcare costs, Medicare is expected to grow the fastest at 7.9
percent per year over the same time period. Healthcare spending is increasing rapidly and
requires a larger percentage of the government’s budget. This type of growth is not
sustainable for the government. As the largest stakeholder in the healthcare industry, they
need to make the system more efficient.
Having value-based care could greatly lower the cost of healthcare to all payers.
This would reduce insurance premiums so more people could afford coverage. It could
prevent unnecessary tests and procedures reducing costs and freeing up equipment and
workers for new patients. If the government doesn’t try to get healthcare costs under
control, it could cause dire consequences for the whole system.
References
Centers for Medicare and Medicaid Services. (2021, 12 15).1NHE Fact Sheet. Retrieved
from CMS.gov:
https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-
Reports/NationalHealthExpendData/NHE-Fact-Sheet
