Health Care Headaches

By Ryan Boyle

Affordability and the cost of living have become frequent topics of conversation. Costs rose, but incomes did not immediately keep pace. The rate of inflation has moderated, but consumers remain sensitive to high prices, worried they are falling behind. Higher prices occur when demand exceeds supply, and level off when balance is restored. Many of the latest inflationary challenges are in sectors where equilibrium will be difficult to reach.

Healthcare is one of them. The sector is suffering from a chronic malady of rising costs. Demand for health treatments will never abate; illness, injury and aging are simply parts of the human experience. However, the capacity of the U.S. healthcare system is not keeping pace with the aging population and innovative treatments. Growing demand and limited supply lead to higher prices.

Of late, costs are on the rise as novel therapies come to market for more specific illnesses. Breakthroughs in gene therapy and cancer treatments are tremendous advancements, but their high development costs are spread across fewer patients. GLP-1 drugs offer promising outcomes for a growing array of symptoms, but insurers are hesitant to cover the high price of using them for non-critical applications.

Most citizens rely on health insurance to access care. The majority of consumers receive insurance through their employers; those over 65 or of low income qualify for federal insurance programs. A subset of consumers purchase directly from insurers.