Dr. Robert E. Pritchard, Professor of FinanceRohrer College of BusinessRowan University, Glassboro, N.J.
Summary of Paper
Newswise — The primary reason for the rapid increases in health care costs is the interaction of two processes that feed on each other: 1) the rapidly growing population of senior citizens who are living longer lives and 2) the rapidly improving health care system propelled by our highly innovative medical researchers. Consequently, regardless of cost-cutting measures, unless health care is rationed, the cost of health care will continue to increase.
This article provides the following:
1. Important information about health care and the economy – topics that require close consideration before making any changes to health care.
2. Brief discussion of the impending crisis in Social Security within the context of funding health care. It recommends that legislation must be passed to ensure the current questionable solvency of Social Security before allocating funds to health care reform.
3. Recommendation that each component of the health care system be reviewed individually and subjected to thorough evaluation, study, and debate. Only then should legislation be proposed to change that particular component. Changes to health care should not be packaged as a massive health care reform.
4. Recommendation for a specific course of action that will ensure the continued health care for senior citizens without rationing health care or increasing taxes. The recommendations also include changes that can be made now to reduce health care costs but will not require significant funding to implement.
Members of the media and others who want to read the full text may go to http://www.rowan.edu/colleges/business/articles/index.cfm?id=30.