Higher demand for medical services – as Americans expect more from their health care providers, health care spending is increasing at a faster pace than the rest of the economy. Higher demand and more frequent use results in more spending.

Developments in medical technology – new and improved technology helps diagnose and treat various medical conditions— which has enhanced our quality of life. However, the research, development, and maintenance of new technologies are expensive and costs are generally passed down to consumers.

Prescription drug costs – the fastest-growing health expense in our country is Rx drugs, which are costly to develop, approve, and market. It may take many years and millions of dollars to bring a drug from the laboratory to the local pharmacy.

An aging population – as baby boomers reach middle age, they require more medical services. According to America’s Health Insurance Plans (AHIP), people over 50 use twice as much health care as those in their twenties, and almost four times as much by the time they reach 60.

Treating the uninsured population – an estimated 45 million Americans have no form of health insurance. Most costs associated with their care (emergency room visits, for example) are left unpaid.

Government regulations – various mandates and regulations imposed by state governments increase the cost of insurance coverage for all insured consumers in those states.

Increasing provider expenses – physicians are facing astronomical malpractice insurance costs to protect their practices and themselves from costly and damaging litigation, causing many to retire early or charge their patients higher costs for medical services.

Fraud and abuse in the health care system – when a provider receives payment from an insurance company for services never rendered or a consumer submits a fraudulent claim, every American pays the price.