Rising medical costs encourage companies to come together to shed light on the issue
Three of the largest health insurance organizations in the United States have agreed to come together for the sake of a new research initiative that is meant to help develop a digital tool that could shed some light on the costs of medical care. These costs have become a major issue for many people and businesses throughout the U.S. and are somewhat shrouded in mystery. It is no secret that medical costs have been on the rise for some time, but exactly what is causing this trend is not entirely understood.
Research initiative aims to build a digital tool that will raise awareness of medical costs
Insurers have been registering their concerns regarding rising medical costs for years. The rise in these costs have affected insurance premiums significantly over the past decade, forcing consumers to pay more for their coverage as insurers attempt to recover their own losses. Aetna, Humana, and UnitedHealthcare have partnered to work with the Health Care Cost Institute in order to better understand the issue and help others understand it as well.
Rising health care costs are becoming a financial burden for consumers and businesses alike
The research initiative aims to provide consumers, businesses, and government agencies with a tool that will allow them to access transparent medical care information with a particular focus on cost. Currently, data concerning the actual costs of medical care are only readily available to insurance companies, many of whom use this data to price their own insurance products. Even for these companies, this information can be difficult to understand.
Medical costs expected to reach $4.7 trillion by 2020
In the U.S., medical costs have grown three times as quickly as wages throughout the country. By 2020, it is estimated that medical spending with reach $4.7 trillion, growing 80% from what spending had been in 2010. Rising medical costs are often attributed to the use of new technology and the development of new medication that requires extensive testing, but there may be other factors that influence these costs as well.