Personal Finance, FIN 2100 Kapoor 12th edition, University of Central Florida
Personal Finance, FIN 2100 Kapoor 12th edition, University of Central Florida
12th Edition
ISBN: 9781309091548
Author: N/A
Publisher: McGraw Hill Education
Question
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Chapter 11, Problem 11.1PQ1
Summary Introduction

To determine:

The reasons for rising health care expenditure.

Introduction:
Health care cost refers to all the cost which is incurred in providing health care services. It includes diagnosis cost, regular checkup cost, therapies and many other costs.

Expert Solution & Answer
Check Mark

Answer to Problem 11.1PQ1

Solution:

Due to use of expensive technology, regular checkups, stricter regulations and many other reasons the health care cost is rising.

Explanation of Solution

The reasons for rising health care expenditure are:

  • Because of the rise in use of expensive technology.
  • Doing same test more than one time or doing two different tests to find out same problem.
  • Due to increase in the frequency of treatment.
  • Due to regular checkups.
  • Due to increase in the life span of the people and the elder peoples.
  • Government regulations which result in increase in cost of the medical products.
  • Due to the rise in the number of accidents.
  • Due to lack of competition and it is because the restrictive nature of rules related to work in medical industry.

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