Employee Benefits-Medical Plans and Health Care Research Paper

Employee Benefits-Medical Plans and Health Care - Research Paper Example The rising trend of health care cost can be attributed to the increase in prices of care especially due to consolidation of the hospital industry. Hospitals have been spending much on ensuring effective provision of health care services. Recently, the prices of all major categories of health care such as surgical procedures and hospital stays. Consolidation of hospitals through mergers and acquisitions has also contributed largely to increase in the cost of health care. For instance, prices of hospital health care services rose by 33% between 2009 and 2010Â   when there were major cases of mergers and acquisitions. The cost of provider services in the United States in very high than other countries such as Europe. This is due to increased spending on clinical and physical services. One of the leading reason is the high prevalent rate of obesity in the United States which require adequate medical spending. The medical field has also been characterized by regular advancement in medica l technology which has significantly influenced an upward shift in the cost of care services. Of the overall 65 % increase in prices of health care spending, 30% of can be tracked spending on the implementation of medical technologies. The new technology is required in hospitals as it expands the options available for the treatment of different medical needs. However, the approach involves replacing lower-cost medical procedures and options with those that are higher cost. Healthcare benefits cost-sharing has become very strained.