S2. Increasing costs and decreasing incomes will reduce health coverage and further stress the health care system, a system already in crisis.

About 16 percent of the population is presently uninsured, and another large proportion is underinsured Health care expenses have been rising at about 15 percent per year, four times the rate of inflation. In addition, an aging population is utilizing higher levels of health care. The medical/health care system functions on tight profit margins, and affordable health treatment for illnesses is becoming inaccessible for many. The effects of peak oil will exacerbate the trends of rising costs and decreased medical coverage.

Peak oil will cause several direct impacts on the medical/health care system. Peak oil will increase costs of medical services, from the cost of transportation and maintaining expensive facilities to the cost of medical equipment, supplies and pharmaceuticals. These increasing costs will accelerate current cost trends and could possibly result in reduced operating hours for clinics and/or closure of some facilities. As economic stresses stemming from peak oil take their toll, needs for mental health care and substance abuse treatment may increase.

The biggest impact, however, is the indirect impact of peak oil on health coverage. As the overall economy is stressed due to peak oil, businesses will continue to shift the costs of health coverage to employees and the number of uninsured and underinsured will increase. As a result, there will be less preventive treatment for a growing segment of the population. People will let health problems fester until they need emergency treatment in clinics and hospitals, at which point the advanced illness will be more difficult and expensive to treat. In combination with current cost trends, the conventional health care model may become unworkable.