The rising costs of healthcare is a barrier to ensuring that people in society live healthy lives. A
good number of the people in the United States of America and the world as a whole do not have
a stable source of income which means that they live from hand to mouth. It, therefore, requires
the intervention of the government and other agencies to ensure that the people in the society
have access to quality healthcare. In the interview with CVS pharmacist, Mary Magdy, she noted
that many people who are bedeviled by various diseases are willing to seek medical care but they
do not have the required financial resources to enable them to get quality healthcare. She noted
that many patients go to the hospital with serious sicknesses but they cannot be cared for by the
doctors and nurses because they do not have the necessary funds to pay for healthcare. The other
thing that came up in the interview is the fact that many people in the society cannot pay for
medical insurance that could enable them to get high-quality healthcare that could improve their
According to Baicker & Goldman (2011), the author looks at the solutions that have been in
place to ensure that the people in the society receive high-quality healthcare even though they do
not have the necessary funds to pay for their healthcare. One of the strategies noted in the paper
includes cost-sharing. Baicker & Goldman (2011) assessed the role that healthcare incentives
play in slowing down healthcare spending growth. One sad fact that comes from the paper is that
healthcare in healthcare does not necessarily improve the quality of healthcare even though the
patients respond to the healthcare incentives that are offered by the government and the other
agencies. The authors note that there is a need to ensure that the healthcare incentives that have
low-income are targeted to the right people so that they create an impact in the lives of the
people in the society. Baicker & Goldman (2011) recommend that there is a need to come up
with an insurance policy that will increase the healthcare that each dollar buys at the same time
slowing down the expenditure on healthcare.
Daemmrich & Mohanty (2014) address the steps that have been taken by the government of
China and the United States of America to improve the healthcare of the citizens in the country.
The authors identify the fact that the United States of America and China are broadening health
insurance coverage and increasing the expenditure they make on pharmaceuticals which is a
contrast of the other major economies that prefer to control the price of drugs as a way of
reducing the expenditure that they make on healthcare. The expansion in private insurance
contributes to spending branded drugs because many insurers compete to have a larger market
share rather than saving the costs. One notable fact is that the healthcare reforms that are being
implemented by the government of China and that of the United States of America is that align
to the historical trajectories but does not resolve the core tension that lies between the incentives
for the invention of the new drugs and universal access to affordable medicines that will be used
in dealing with the medical conditions that bedevil people in the society. There is need to ensure
that the healthcare in the two countries benefits the low-income earners that are living in the two
countries as well as the other countries in the world by making healthcare more affordable for the
populations. The respondent for the interview was aware of the fact that the American
government has allowed for a free market for drugs whereby there are no price controls. He
noted that the government makes healthcare affordable by making sure that as many people as
possible have access to healthcare insurance and that some of the most important drugs are
subsidized so that they are affordable to all the people in the society. Some of the drugs such as
ARVs are given free of charge according to the respondent who took part in the interview, which
is one of how the government fights HIV/AIDS in the country.
According to Kirkwood (2016), the spending on healthcare in the United States of America is
high compared to the other countries is because the prices in the United States of America are
exceptionally high. The author addressed whether buyer power is supposed to be relied on as a
way to reduce the prices or not. Kirkwood (2016) notes that there is a need for the biggest
spender on healthcare that is the government to be allowed to negotiate the prices of the
prescription drugs which is a strategy that will reduce the prices of the drugs without necessarily
reducing innovation. It should be noted that innovation is important in healthcare it allows the
pharmaceutical companies to come up with new and better drugs that will be used in dealing
with the medical conditions that they face in the society. Kirkwood (2016) also notes that
pharmaceutical companies can reduce the prices of medical supplies and still make profits
because they have been making a significant amount of profit over the years.
Dodge & Dion (2011) term the habit of spending more money on healthcare as chronic
healthcare spending disease. The authors predict that the amount that the Canadians are spending
on healthcare is likely to increase over the two coming decades and the Canadians need to come
up with serious measures that will help in dealing with the so-called spending disease. Some of
the measures that the authors bring up as a way of dealing with the healthcare spending disease
include a sharp reduction in public services other than healthcare, increasing the amount of taxes
that will be used in funding the public share of healthcare spending. Increasing individual
spending as a way of taking the burden of funding healthcare from the government and to
degradation of the healthcare standards that are publicly insured. One disadvantage of applying
such solutions is the fact that they will reduce the expenditure that the government makes on
healthcare but they will raise the cost of healthcare in the society and in so doing the low-income
earners will find it tough when it comes to paying for their healthcare.
The cost of care for several diseases is also on the rise in the world because of the increasing
prices of the drugs that are used in dealing with the conditions. For instance, the cost of diabetes
care is increasing in the United States of America, according to Peter & Lipska (2016). The total
cost of diagnosed diabetes was $245 in the year 2007 which was a 21% increase from 2007. The
increase in the price of care is attributed to the increase in the number of the people who have
been diagnosed with the disease and the fact that the price for the medical goods and services is
also increasing as a result of the inflation that is experienced throughout the world. Peter &
Lipska (2016) note that the cost of caring for a patient with diabetes compared to the patients
with no diabetes doubled from 1987 to 2011 which is an indication that diabetes in itself is a very
costly disease to treat. More than half of the increase in the care for patients with diabetes is
associated with the increase in prescription drugs. The increase in the price of the prescription
drugs has also been blamed in the treatment of the other diseases which increases the prices of
healthcare significantly hence affecting the lives of the people in the society. The increase in the
prices of prescription drugs has been associated with the development of the new and improved
drugs that are used in fighting the diseases. The prices of the newer drugs are at times 100 time
more than the existing drugs. The most important thing is, therefore, to focus on the advantages
that the new drugs have over the old drugs when it comes to the treatment of the disease.
Some of the effects of increasing prices for healthcare is that many people in the society are not
able to afford it according to Kirkwood (2016). The result including worsening of the medical
condition and even death resulting from medical conditions that could be effectively treated. The
increase in the prices of healthcare leads to an increase in expenditure on health at the expense of
the other useful expenses leading to imbalance in people’s life according to CVS pharmacist,
Mary Magdy, who was the respondent to the interview.
In conclusion, there are many factors identified that affect the prices of healthcare and at times
they make the prices to be so high in such a way that many people in the society are not able to
afford the services. Preventing the prices may be a challenge but the government in the United
States of America and the whole world as a whole need to make sure that the health of the people
in the countries is guaranteed even though the prices are increasing. One of the ways is by
making healthcare affordable to all the people in the society.
Baicker, Katherine, and Dana Goldman. "Patient cost-sharing and healthcare spending
growth." Journal of Economic Perspectives 25.2 (2011): 47-68.
Daemmrich, Arthur, and Ansuman Mohanty. "Healthcare reform in the United States and China:
pharmaceutical market implications." Journal of pharmaceutical policy and practice 7.1
Kirkwood, J. B. (2016). Buyer power and healthcare prices. Wash. L. Rev., 91, 253.
Dodge, David A., and Richard Dion. "Chronic healthcare spending disease: A macro diagnosis
and prognosis." CD Howe Institute Commentary 327 (2011).
Peter, P., & Lipska, K. J. (2016). The rising cost of diabetes care in the USA. The lancet.
Diabetes & endocrinology, 4(6), 479.