Aging Population is NOT the Reason for Rising Medical Care Costs

An aging population isn’t the reason for the high cost of medical insurance and care, according to Princeton economist Uwe Reinhardt’s. He argues, that the bulk of annual spending growth of medical insurance and care can be explain by the overall population growth (about 1.1 percent per year), increase in the prices of health care goods and services, and the availability of even more new (often high-cost) medical products and treatments used by all age groups. Many people believe the aging of the United States population is soaring almost tsunami like. This isn’t true. The aging of our populating is a gradual process and does not similar to a tsunami. It is at best a demographic ripple. Japan’s population has been graying for a while yet medical care costs are $1,000 per person compared to $7,000 in the United States. Sweden offers even more proof that an aging population doesn’t effect rising costs in health care. Sweden as the oldest population in the European Uniion, they’re average age has increased over the past 15 years, but health care costs have remained the same. How has Sweden managed do this? First, 95 percent of the country’s hospitals and doctors use electronic medical records, which makes for fewer errors and more efficiency. (As of three years ago, only 15 percent to 20 percent of U.S doctors’ offices and 20 percent to 25 percent of U.S. hospitals had implemented electronic medical records, and adoption continues to move slowly). Second, in Sweden, preventive care is free. So no one thinks to skip a needed check up. In the United States, many 50-something patients put off care that they can’t afford, waiting until they reach the magic age of 65 and qualify for Medicare. At that point, the catch-up care they need can be very expensive and in some cases, their health has been permanently damaged. The United Sates along with Canada and Australia shall be for a very long time the youngest nation in the Organization of Economic Cooperation and Development. Only in 2025 will the American population be as “old” as many European populations are already today.