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 Inflation’s Impact On Healthcare

Inflation’s Impact On Healthcare

It’s difficult to get through a day without being involved in a conversation about inflation. While some
sort of adjustment had to have been expected after the pandemic, it’s hard to image for anyone that it
would be this crazy. Prices have skyrocketed and we are now paying less for more. Materials in the
construction field are a great example as prices have nearly tripled this year, and their availability is low
as well.

Supply and demand are part of the argument for why we are experiencing such inflation. However,
there are several other reasons that have contributed. It’s important that people realize that this may
not be a direct result of the impact, but the need for such rapid inflation was created because of the way
the economy responded to shutdowns and market crashes.

The Pandemics Impact On Healthcare
Covid is not over but hopefully we have passed the worst of it. The combination of vaccines, antibodies
and other precautions have helped the numbers go down and stay there. Businesses are still recovering
from the pandemic and part of the reason they are having such a difficult time is because of the inflation
issue that is hitting everyone. In order to provide the same goods and services a business does, the cost
of operations have gone up considerably. Businesses are now challengeed with deciding how to split the
costs with customers while still trying to stay affordable.

Because of shutdowns and the market being slammed, the economy has rebounded almost like a
slingshot. While that’s great for some, many are trying to keep up and that includes with their finances
and especially their healthcare costs. There is a shortage on staff workers, specific medical supplies and
more. These services and products are becoming more expensive, and it doesn’t seem like that will slow
down before the end of the year.


Possible Top Reasons For Inflation
There are several reasons for inflation and that’s one of the things people forget when they talk about
the rapidly skyrocketing prices of goods and services. No single thing has caused prices to go up this
quickly and there are a variety of things that have influenced inflation. These are some of the possible
reasons inflation has gone faster:

Labor shortage: The first thing that has impacted the cost of services and products is the labor
shortage. People were forced to find income during shutdowns. Many learned how to find
better jobs or better forms of income that they continued after covid restrictions eased. This
created a gap in the labor field and as demand grew, so did the gap in several areas of business.
 Material shortage: With fewer workers as well as materials the costs and availability of workers
has drastically changed. Companies are producing fewer goods but charging more for each one.
Consumers are also buying more things in bulk, especially when it comes to groceries as they are
also trying to save on costs.

More jobs: One of the surprising ways people have benefited during the pandemic is by
advancing their careers. Companies felt a worker gap near the top as more people retired earlier
than expected because of the pandemic. That means as restrictions were removed, companies
were unable to replace their experienced workers and had to promote quickly. This created an
opportunity for people to grab better jobs, but now an untrained and inexperienced talent pool
is left to take over those jobs that are still available.

Oil companies responding to pandemic: Two years ago, gas prices were lower than they had
been in years. The reason wasn’t political, it was because of supply and demand. Gas companies
understand that they lost billions in revenue and that their market could be leaving for electric
cars within the next two to five years. That means that they will have to maximize their potential
profits each year as long as they can until demand goes back down.

Inflation like anything is temporary. However, there are ways that everyone can take advantage of this
current economy. Whether it’s getting a new job, moving to a new state with lower cost of living options
or something else, people are making the most of their opportunities. However, that doesn’t exclude
anyone from the rising costs in healthcare.

Will Insurance Rates Be Impacted?
A bit of luck is that because inflation happened so rapidly insurance providers did not adjust in
anticipation. Last years rates were a bit more reasonably adjusted than this years may be. However,
there is hope that inflation will slow down by the end of the year, allowing rates to stay within reason
rather than having to make drastic adjustments.

One advantage people are finding with getting coverage is that online resources allow them to compare
dozens of providers at once. This also allows them to customize their plan based on their age and needs
of healthcare. It’s never easy to predict exactly how the market will respond, but healthcare will
thankfully not be drastically impacted when it comes to price, at least not to the point that was
anticipated.

Will Service Be Impacted?
While there’s potential for costs to slow down, one thing that may not be improved immediately is the
low rate of workers in the field. Nurses, assistants, manufacturers and even technicians may not be
available as they have sought out new employment elsewhere. This could impact the time it takes to get
your medication or get a test done.

Thankfully there is good news on the way. The medical field has become a lucrative industry for workers
and there are hundreds of thousands of people who have recently entered or completed schools that
teach important programs needed to get into the medical field. These students will enter a job market
desperate for their assistance.

When you consider the impact of inflation, do not just think about the increase of costs but also the
increase, if there is any, of your income. If your income has gone up more than your expenses have,
then you are benefiting greatly from the current economy. There are ways to save on most areas
including healthcare which, while it has been impacted by inflation, has not been impacted too greatly.

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