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Over the past five years the cost of health insurance has risen 54 percent.1 This persistent rise has recently been attributed to the low out-of-pocket costs paid by consumers.2 By not knowing the full costs associated with health care, consumers demand more and âoveruseâ it (moral hazard).
Also, demand for health care products and services appears to be on the rise. Positive factors for the health care sector include: Increased need for services: An aging population requires more extensive drug treatments and medical care. The health issues associated with obesity also could boost demand for medical services.