Why Health Care Is So Expensive in The United States
Amid the coronavirus crisis, many of us have been keeping our fingers crossed in hopes that we won’t have to use health services. For some, it’s due to the risk of getting COVID-19 when seeing a doctor or hospital; for others, it’s because health care is so expensive. With reviews on healthcare on US-Reviews, you can see that in the United States, the health care system’s distinguishing feature is that it is costly for people.
Why is healthcare in the United States so expensive? According to Carmen Balber, the greatest problem with US health insurance is the “for-profit insurance system,” the only one of its kind in the world.In the US, most health insurance is provided by private corporations and individuals who must finance their subsidies. For the most part, “health care has always been seen as a right rather than a privilege,” he says.
The motivation to make money causes prices to rise. For example, insurance companies spend “enormous amounts of money on review” as part of the pursuit of their objective of not paying consumers for the care they expect to receive. If you check reviews about healthy food delivery services, you will realize that money is pumped into this aspect, making healthcare even more expensive.
Dr. Georg Benjamin, executive director of the American Medical Association, listed the lack of universal health care as the primary factor behind high costs. Many of the other reasons for expensive healthcare in the US are explained further in this article.
The US. Health Care Is Highly Fragmented
Ben called out the complexity and disuniformity of the US health care structure: this had complicated administrative processes and added to administrative costs. A recent study foundthat administrative costs accounted for 34.2% of all health costs in Canada but only 22% in the US, a decentralized, publicly funded system.
A further fact: Medicare, which covers American citizens who are over the age of 65, has costs that are one-seventh as much as those for younger adults’
There are no unnecessary delays, according to Balber, with Medicare. There is not as much bureaucracy in private healthcare as in the whole system.
We Pay Per Service
Most US health care exists in a system where patients are charged based on the treatments they receive, as pointed out by Dr. Harlan Krumz, cardiovascular disease and public health professor at Yale.
“We utilize a lot of different services,” he noted. “There are many places in the health care ecosystem where people are paid based on volume, ‘The fewer the scans, the better.’ It’s in the interest of the hospital, the physician, and the health care system when they’re paid based on a fee-for-volume.”
As a result, Benjamin noted, the fee-for-service model encourages the overutilization of primary care.
Balber argued that “Fee-for-for-Service causes a perverse incentive to produce more procedures which end up helping fewer patients in the long run.” Benjamin also claimed that the US spends less on social support systems and long-term care than most other countries.
Lack of Government Regulation
Another issue is perhaps the most difficult to untangle. Still, the main point is this: Payers, like private insurance companies, have the greatest ability to keep costs down because they have control over the negotiation. On the other hand, when they must deal with the federal government, they are held to a higher standard to collect premiums.
Similarly, a recent study discovered that private insurers had covered nearly two and a half times the costs for the same service provided by Medicare at the same location.
Companies offering health care in the US are allowed to price it as they see fit, regardless of whether the government regulates their rates.
COVID vaccines have now been developed with government funding, and thus several companies are producing them for an exorbitant price, commented Peter Balber.