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Research on the Determinants of Elevated Healthcare Costs in the U.S. and the Factors Contributing to the Slowdown in Cost Growth
- 1 Shanghai Weiyu International High School
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Abstract
In light of the sustained yet decelerating growth trajectory of healthcare expenditures in the United States, this paper delves into the major drivers of this phenomenon, with an emphasis on the impact of an aging population on healthcare spending. As the U.S. population aged 65 and older continues to grow, aging is increasingly becoming a significant factor in rising healthcare costs. Furthermore, the increasing cost of healthcare services is a contributing factor to this trend. By analyzing existing data and literature, it examines the key factors contributing to the rise in healthcare costs, including the increased demand for healthcare services among the elderly, the high cost of prescription drugs, and the imbalance between supply and demand in the U.S. healthcare system. In addition, the paper explores the policy measures taken by the U.S. government to address rising healthcare costs, such as health insurance reform, health management for the elderly, and financial subsidies. The results indicate that while healthcare spending in the U.S. remain high, government interventions, such as increasing competition in the insurance market and providing healthcare subsidies, are slowing cost growth to some extent.
Keywords
Population Aging, Healthcare Costs, Cost Containment Strategies, Healthcare System Reform
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Cite this article
Wang,M. (2025). Research on the Determinants of Elevated Healthcare Costs in the U.S. and the Factors Contributing to the Slowdown in Cost Growth. Advances in Economics, Management and Political Sciences,158,7-12.
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Volume title: Proceedings of CONF-BPS 2025 Workshop: Sustainable Business and Policy Innovations
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