Costly Testing and Lifestyle are Increasing Health Care Costs

Chronic disease and costly testing are two big contributors to health care costs in the United States, with many diseases being preventable and many medical tests being unnecessarily performed. Addressing both issues could produce much-needed savings, say health care professionals. These issues were addressed Tuesday in Washington, D.C., at a discussion organized by the nonprofit, nonpartisan Alliance for Health Reform.

Chronically ill patients account for around three-quarters of the spending on health care in the United States, around $1.6 trillion a year, says Dr. Kenneth Thorpe, professor and chair of the department of Health Policy & Management at Emory University. He said that is it not only the biggest source of spending, but it is also the fastest growing. A number of chronic illnesses, like kidney disease, diabetes, and cardiovascular diseases, have risen over the last decade, he said...

Chronic illnesses are not only a burden to the health care system, they also impact the economy directly through loss of productivity. Dr. Thorpe estimates that for every $1 spent on health care, $4 are lost in productivity as a result of chronic illnesses. He is most concerned about obesity. Directly linked to the rise in diabetes, obesity has doubled in the last decade, now affecting over 30 percent of the population...