In the United States at present, it is evident that the cost of health care is on the rise which
can be partly due to new/improved medical technologies, advancements in medicine, the increase
in consumers’ demands and consumers’ utilization, increased labor costs, the aging of the
population, lack of information technology, unhealthy lifestyles, etc. These
improvements/advancements in health care technologies and medicine have improved and
prolonged the lives of many U.S. citizens, but not without a high cost rate. The cost of health
care has risen faster than any other consumer costs over the last ten years. It is projected that by
the year 2016, which is near, the total amount spent on health care will increase to $4.2 trillion,
…show more content…
“Depending on whether the plan is a
Preferred Provider Organization (PPO) which is more flexible and one can see any health care
physician they choose without a referral, a Health Maintenance Organization (HMO) which is
where one has a primary care physician of whom all there health care services passes through,
and with the exception of an emergency, one needs a referral to see any other physician, a
Exclusive Provider Organization (EPO) where the flexibility of the PPO plan is merged with
the cost-savings of the HMO plan, but the hospitals and physicians available to you will be
limited…a primary care physician isn’t required as well as any referrals to visit another
physician, or Point of Service (POS) plan where you pay less if you use that particular plan’s
network of physicians, hospitals, etc., consumers will have access to the health care providers
managed in different ways. HMOs tend to be the most restrictive about which doctors you can
see and what you must do to see them. This usually means that the insurers save on your cost of
care and thereby provide lower premiums.”