What's Causing the Rising Cost of Health Care in South Carolina?

There is no doubt that there is a trend in terms of the cost of health care in South Carolina and the United States in general. Sadly the trend is up instead of down. Our United States lawmakers are actively trying to reverse this trend and this has caused a heated debate among the two major political parties. Each political party and many political pundits have theories about what is causing this rise in health care costs in the United States, but what are the real causes?

Malpractice Insurance – In South Carolina, doctors are required to have malpractice insurance. Malpractice insurance ensures that if a doctor makes a mistake, the victim of that mistake is compensated appropriately. The cost of malpractice insurance has risen precipitously over the past several years and doctors have had to transfer the cost of these increases to their patients and their insurers. Insurance companies are forced to charge higher rates because of this. The reason that malpractice insurance has risen is that malpractice claims have increased. Courts have been lax to limit the amount that a victim can claim. A mistake in the operating room can cost hundreds of millions of dollars in a malpractice lawsuit. Sadly, neither of the two major political parties is offering solutions to this problem, or tort reform that would limit malpractice suits.

Private Insurers – Private insurance companies are “for profit” companies. This means that the CEO’s and upper management of these companies are required to make as much money for their shareholders or owners as possible. To do this private insurance companies have tried to cut corners, limit claims and refuse to cover operations to maximize these profits. This desire to maximize profits while limiting expenses increases the cost of health care insurance to their customers.

Patients Without Insurance – Doctors and hospitals are legally and morally bound to provide aid to hurt individuals whether or not they have the ability to pay. In South Carolina, if a sick individual arrives who has no means to pay, doctors and hospitals must treat that person. The cost of treating these uninsured individuals is passed on to those individuals and customers who can pay. This increases the cost of health care in South Carolina for paying customers.

Keep in mind that no matter what the solution, there is one fact that tends to be overlooked. The percentage of income that the average South Carolina resident spends on food, housing, education, clothing, and health care has remained stable over the last fifty years. So advances in production of many other goods have negated the affects of the rising cost of health care. So although the health care cost situation may seem bleak and getting worse, the amount of money that they average United States citizen is spending on these necessities has not changed.