Healthcare costs decreased in the U.S. for the first time from less elective, preventive and chronic disease care during the pandemic, but there are eight reasons why healthcare costs are due for an increase, The Hill reported April 2.
1. Providers are battling increased costs for fuel and medical supplies, as well as labor expenses amid staff shortages.
2. More hospitals struggled during the pandemic, leading to consolidation by larger systems that have higher reimbursement rates, giving them more negotiation power with health plans.
3. There has been an increase in the cost of drugs, and no major legislation has been passed to control these prices.
4. There was a delay in preventive care, chronic disease management and nonemergent procedures because of the pandemic. This could raise costs as more patients deal with worse health conditions after putting off care.
5. There could be major costs from long-term complications of COVID-19.
6. Americans experienced worse mental health during the pandemic, with three times as many Americans reporting symptoms of anxiety and depression than prior to COVID-19, and untreated mental illness is associated with higher medical costs, according to The Hill.
7. Government funds for COVID-19 vaccinations and treatment are running out.
8. Once the COVID-19 emergency ends, there will be a decrease in Medicaid enrollment and federal subsidies for people purchasing individual insurance.