Increasing healthcare costs: Need to Strengthen infrastructure ,Support the Vulnerable

Barekat Health & Pharmaceutical Group: In today’s world, healthcare expenses have become one of the greatest challenges facing households across the globe. In countries like Iran, where economic difficulties and international sanctions are prevalent, these challenges are further compounded. Increasing healthcare costs, particularly in sectors such as pharmaceuticals, hospitalizations, and surgeries, place immense pressure on middle and lower-income groups. The more vulnerable segments of society, who often have lower incomes, are the most affected, and this economic strain can lead to a decline in the quality of life and reduced access to essential medical services. Therefore, governments must implement supportive policies to alleviate healthcare costs for low-income and vulnerable populations.

Causes of Rising Healthcare Costs

In examining the causes behind rising healthcare costs, one must consider a combination of structural and economic factors. Besides inflation and currency fluctuations, the following factors also play a crucial role in the escalation of healthcare expenses:

– Increase in Chronic Diseases: In recent years, the prevalence of chronic diseases such as diabetes, cancer, cardiovascular diseases, and hypertension in Iran has surged. These conditions require long-term and complex treatments, which are inherently expensive.

– Dependence on Imported Medications: Due to economic restrictions and international sanctions, many drugs and medical equipment consumed in Iran must be imported. This is particularly true for specialized medications and high-cost treatments, such as biologics and cancer therapies.

– Competition in the Pharmaceutical Industry: The Iranian pharmaceutical industry, particularly in the field of specialized drugs, still faces numerous challenges related to production and drug supply. This leads to price increases and decreased competition within the pharmaceutical market.

 Rising healthcare costs on the middle & lower Classes

Rising healthcare expenses have profound negative effects on various segments of society, particularly the middle and lower-income classes. These impacts encompass economic, social, and health-related issues, some of which are outlined below:

– Poverty and Reduced Quality of Life: High healthcare costs force many middle and lower-income families to prioritize basic life necessities over medical expenses. This situation can lead to significant psychological and social problems, as the inability to meet healthcare needs induces feelings of insecurity and intense stress.

– Limited Access to Essential Medical Treatments: Many chronic and acute diseases require ongoing treatment that becomes financially burdensome for lower-income groups. Due to a lack of financial resources, these individuals are unable to afford necessary treatments, leading to worsening conditions and increased future medical expenses.

– Rising Health Insurance Premiums: In countries such as Iran, health insurance providers have raised premiums due to rising healthcare costs. This price hike exacerbates the financial burden on middle and lower-income households.

Government commitments to reduce healthcare costs

The Iranian government has made efforts in recent years to ease the burden of healthcare expenses through various policies. Some of these actions include:

– Health Transformation Plan: Initiated in 2014, the Health Transformation Plan aimed to reduce healthcare costs and improve access to medical services for low-income groups. A key feature of this plan was the reduction of hospital service co-payments. Under this initiative, hospitalized patients were given free insurance coverage, leading to reduced healthcare costs for different segments of society, especially for the more vulnerable.

– Expansion of the Iranian Health Insurance Program: The Iranian Health Insurance program, designed to provide coverage for low-income groups, strives to prevent the financial burden of healthcare from escalating. This insurance plan has especially benefited those without previous medical insurance, providing them with essential coverage and reducing their healthcare costs.

– Support for Essential Medications: The government has also attempted to reduce the costs of essential and generic medications through supportive policies, including providing subsidized foreign currency for the import of key pharmaceuticals.

– Increasing Domestic Drug Production: The government has worked to reduce reliance on imported pharmaceuticals by promoting domestic production. These efforts have been particularly successful in the production of essential drugs such as cancer treatments and medications for chronic diseases.

 Government Commitments & Ongoing Challenges

Although the government has taken significant steps to reduce healthcare costs, it still faces major challenges in this area:

– Financial Constraints and Limited Resources: One of the biggest obstacles is the limited financial resources available to expand insurance coverage and improve access to healthcare services. These financial constraints often prevent many programs from being fully implemented.

– Concerns Over the Sustainability of Initiatives: Programs like the Health Transformation Plan require sustained funding and financial resources. Given the ongoing economic challenges, the continuation of these initiatives in the long term may face significant hurdles.

– Deficiencies in Healthcare Infrastructure: Despite the government’s efforts, many regions of Iran, particularly underdeveloped areas, continue to face shortages of healthcare facilities and medical staff. This lack of infrastructure hampers access to healthcare for many segments of society.

– Increased Pressure on the Private Sector: In some cases, due to budget limitations, the private healthcare sector has been forced to increase costs, which in turn exacerbates the financial strain on middle-class households.

Proposed Policies to Reduce Healthcare Costs

Considering the pressures that rising healthcare expenses place on various segments of society, there is a need for more effective and comprehensive policies to alleviate these costs. Some of these proposed measures include:

– Development of Comprehensive Health Insurance Systems: Expanding public health insurance coverage to broader segments of society, particularly in underserved regions, could significantly reduce healthcare costs. Additionally, the government can incentivize private insurance providers to expand their coverage, ensuring more individuals benefit from medical insurance.

– Implementing Income-Based Payment Systems: A potential solution could involve creating payment systems based on patients’ financial capabilities. In such a system, patients would pay a portion of their medical expenses in accordance with their economic situation, with the remainder covered by insurance.

– Supporting the Production of High-Quality Domestic Drugs: The government should implement policies that encourage the production of high-quality domestic drugs, particularly for essential and life-saving medications. This could involve offering financial incentives to domestic pharmaceutical companies, reducing import tariffs for raw materials, and investing in pharmaceutical research and development.

– Expanding Access to Healthcare via Innovative Technologies: Leveraging technologies such as telemedicine, artificial intelligence for disease diagnosis, and treatment management can help reduce healthcare costs. These technologies not only reduce treatment expenses but also improve access to medical services, especially in rural and remote areas.

– Education and Prevention Programs: One of the most effective ways to reduce healthcare costs is by preventing diseases and promoting public health. Investing in health education and disease prevention programs can help avoid expensive medical treatments in the future and ease the burden on the healthcare system.

Social & Psychological Effects of Rising Healthcare Costs

Increasing healthcare expenses do not only impact the economic and health conditions of society but also have adverse social and psychological consequences. Some of these effects include:

– Increased Anxiety and Stress: As families face economic crises, the worry about affording healthcare costs can lead to significant stress and anxiety. This is especially pronounced among low-income groups with limited financial resources.

– Social Discontent and Distrust in the Healthcare System: The rising costs can cause dissatisfaction and erode trust in the healthcare system and government. This issue becomes particularly apparent when people feel that healthcare services are not being provided equitably across all social classes.

– Growing Inequality: The inability to access treatment due to high costs can exacerbate social and economic inequalities. People from various social strata, especially in rural and low-income areas, may be deprived of quality healthcare services, deepening the divide and potentially leading to social and health crises.

Opportunities & Challenges for Iran’s Healthcare System

While Iran’s healthcare system faces numerous challenges, there are opportunities for improvement. Examining these opportunities and challenges will help in formulating more effective policies.

 Opportunities:

– Expansion of Electronic and Digital Systems: Given the growing technological trend worldwide, the use of electronic systems for managing medical records, online appointment scheduling, and remote medical consultations can help reduce healthcare costs.

  – Greater Private Sector Participation: Collaborating with the private sector, particularly in providing medical equipment and pharmaceuticals, could boost competition in the healthcare market, thus reducing prices.

– Developing Medical Tourism: With its high-quality healthcare facilities and relatively lower costs compared to some other countries, Iran can expand medical tourism to generate additional financial resources for the healthcare system.

 Challenges:

– Sanctions and Economic Issues: Sanctions and economic crises remain one of the biggest challenges for Iran’s healthcare system. These issues increase the costs of medications and medical equipment.

– Decreased Government Financial Resources: Lower oil revenues and economic difficulties could result in reduced government funding for healthcare, affecting the sector’s development.

 – Weakness in Resource Management: Inefficiencies in resource management and the unequal distribution of healthcare services could exacerbate the existing problems.

Conclusion 

Given the significant increase in healthcare costs and their impact on the middle and lower classes, the need for immediate and comprehensive government action to reduce these costs is evident. Supportive initiatives such as health insurance, domestic drug production, and the use of modern technologies can help ease the financial burden on vulnerable households.

However, economic challenges and structural issues require long-term solutions and inter-sectoral collaboration. Ultimately, to ensure equitable access to healthcare services, the government must not only implement preventive measures but also strengthen infrastructure and provide support to disadvantaged social classes.