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Why is healthcare so expensive?

There is no denying that healthcare costs in the U.S. have risen significantly. Many people in Maryland are even without insurance because costs are so high that they cannot afford it. This is the reality across the country as prices continue to skyrocket, but why are prices rising? What is making the costs so high that many people can no longer afford them?

According to The New York Times, there are several reasons for high healthcare costs that are floated about, but many of them are nothing more than myths. One of those myths is that doctors are prescribing unnecessary services, but that does not pan out when looking at other countries without healthcare cost issues that also do the same thing. Another myth is that too many people are demanding services. The idea of supply and demand is what this myth is about, but, again, this issue happens in other countries, too, and is not making costs rise.

So, what is contributing to the costs? One of the glaring differences between our country and others is that we have a lot of administrative costs. That is right. It may boil down into paperwork. Administrative costs add a lot onto a total bill and with all the requirements for paperwork in the medical field, this is not too hard to believe.  Why this is not the only reason for high costs, it is a good place to start when looking for ways to bring costs down. This information is for education and is not legal advice.

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