00:01
So we're trying to discuss the demand and supply factors that contribute to the rising health care costs and how each of the following scenarios lead to the increase in the health care costs.
00:16
So for some demand factors that we have, we have the increase in the aging population.
00:32
We have substance abuse, other things like asymmetric.
00:43
Information that might be increasing the demand for healthcare costs.
00:53
So on the supply side, we have more like innovation, increasing medical technology that would lead to health insurance to cover those costs, which would lead to even higher healthcare spending.
01:16
So we have innovation on medical technology improving.
01:28
And then how does asymmetric information play a role in the increase? well, this is caused by the supplier -induced demand because the doctor knows more about the procedures than the consumer.
01:46
So in this case, simply the supplier is going to motivate more demand because the consumer, which is the person receiving treatment, might not know all the possible options or the prices.
02:05
So simply supplier and this demand.
02:23
And then the fee for service payments, well, doctors would want to perform more services since there is a certain fee that they'll be getting paid...