What is Causing the Rise in Healthcare Costs? 

The data is there.

As we seek to control the growth in health care costs we cannot ignore the fact that our system, as presently structured, has had little to no impact on controlling costs. And, while many recognize the great technological, pharmaceutical and high quality care we have available in the U.S., it doesn’t seem to translate to the overall health of our population. As we look at the current growth in costs the question becomes how much of the increase is created by the current system and how much of it is from areas our present health care system does not adequately address? Are we focused in the right areas? The numbers may surprise you.

We all know, and can see with our own eyes, the increase in obesity over the past few decades. The progression from obesity to metabolic syndrome to heart disease and diabetes is also well documented; but the increase in obesity is just one area that has resulted in substantial cost increases. The other is the increase in the prevalence of chronic disease. The following information is from the Partnership to Fight Chronic Disease, an organization we should all get to know a little better (www.fightchronicdisease.org).

The costs of chronic disease and obesity have been studied and about two-thirds of the rise in health care costs can be attributed to an increase in the prevalence of chronic disease (Thorpe, 2005); while the doubling of obesity between 1987 and today accounts for nearly 30% of the rise in healthcare costs (Thorpe, Florence, Howard, & Joski, 2004). In fact if obesity rates were the same as in 1987, we would be spending 10% less on health care today (Thorpe, Florence, Howard, & Joski, 2004). So if this increase in prevalence is driving our increase in costs, is there anything we can do about it and if so how much of it can be impacted? Again, the data is pretty compelling. According to the World Health Organization, 80% of heart disease and stroke, 80% of Type 2 Diabetes and 40% of cancers, all chronic diseases, are preventable (World Health Organization, 2003).

Next time I’ll talk about employer based health insurance, and what effect chronic disease and obesity have on their health care costs and other areas.

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