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Discussion #1

The discussion this week is interpreted as a sad reality, the factors mentioned (inflation, changing population demographics, intensity, and technology of services) negatively affect the costs of health care. Inflation increases the cost of living of a population, but the inflation in relation to health services is much higher than general inflation, the costs of health care increase by leaps and bounds and become increasingly inaccessible (Chaikledkaew 2008). Demographic changes such as increased life expectancy, different social strata, and the economic situation increase the costs of health care for governments and insurance companies, which increases the cost of insurance premiums making health less accessible to the population. Technological advances in the area of ​​health make medical services more efficient, but unfortunately increase their costs (Seven Factors Driving Up Your Health Care Costs, 2012).

The provision of health services is a very lucrative business, only in countries that have a universal health system will provide health services to the population without a direct cost because these services are provided with financing of taxes paid by the population. In our country it is necessary to have health insurance to guarantee coverage, because not having a universal health system is that the aforementioned factors affect the provision of health care.

Discussion 2

Inflation causes health care costs to increase in all apects. Just like the value increases in goods, the value can easily increase with health care costs, whether it is in services or in copays. I think patient’s themselves are the ones that feel the pain of the inflation because they are the ones that end up paying more. Mean while insurance companies and providers get the beneficial side. Changing population demographics can either increase or decrease health care costs. It would all depend on where you currently were and where you were switching to. Intensity can increase if the factors of production increase. If they remain stable, then I do not see intensity having an impact on health care costs. Technology of services is beneficial for patient’s but more in the long run than short term. Advances in technology have allowed procedures that were not able to be performed before, be perfomed now. The new technology would be a costly impact on health care which in return would increase the health care costs. This advancement is one that cause an increase in health care at first, but then simmer down as the years go on.