Why Healthcare is So Expensive in the U.S.
Healthcare costs in the United States are among the highest in the world. Such spending in 2021 topped a whopping $4.3 trillion — roughly $12,900 per person. That’s about $6,000 more per person than what other western nations pay, according to the Peter G. Peterson Foundation.
Hospital care accounts for 31% of the healthcare costs in this country. If you have a bunch of medical bill debt, you might be wondering why healthcare is so expensive in the U.S.
The fact is that the nation’s healthcare system is market driven and intricate, and a myriad of factors affect the cost of healthcare. Let’s explore.
Rising Drug Prices
U.S. residents pay nearly two times as much for prescription medicines as do people in other industrialized countries, largely because drug prices here are largely unregulated. In the United States, private insurance companies may negotiate drug prices with producers. However, Medicare is not allowed to negotiate prices with developers, even though the government-sponsored insurer pays for a big portion of U.S. drug costs.
Increasing Administrative Costs
Some 8% of the amount the U.S. spends on healthcare goes to administrative costs, according to a JAMA study. That’s compared to up to 3% in 10 other study countries.
It’s no real wonder, considering that the highly intricate U.S. system has separate rules, enrollment dates, funding, and out-of-pocket costs for private insurance and employer-sponsored and government insurance. What’s more, each sector calls for consumers to select among a number of coverage tiers, managed care plans, plans with deductibles, and fee-for-service systems.
Then there is pharmaceutical drug insurance with its varying coverage tiers, copays, deductibles, or coinsurance. Providers, meanwhile, must contend with layers of regulations concerning coding, usage, and billing. Such activities comprise the biggest share of administrative costs.
The U.S. Pays Physicians More
In 2020, the average U.S. family physician made $214,370; specialists, $316,000. Both figures are substantially more, on average, than what their counterparts earn in other industrialized nations. Similarly, the average salary for a registered nurse in the U.S. is around $74,250. That’s compared to $60,253 in the Netherlands, for example, and $58,041 in Switzerland.
HMOs and PPOs in the U.S. do help lower healthcare costs, in that patients are required to get prior authorization before seeing specialists.
In the U.S., 31% of healthcare costs are for hospital care. According to a study in Health Affairs, inpatient and outpatient hospital care prices increased much quicker than physician prices between 2007 and 2014.
Further, what U.S. hospitals charge for surgeries substantially surpasses what hospitals in other countries charge. For example, an angioplasty costs about $32,230 in the U.S., compared to $7,370 in Switzerland and $6,390 in the Netherlands.
High Prices of Tests and Procedures
In the United States, which has become increasingly litigious, hospitals and healthcare professionals often seek to head off lawsuits by ordering a variety of tests – just in case. To illustrate, the average cost of a CT scan in the U.S. is $896. Such scans cost $500 in Australia and just $97 in Canada. Moreover, while an MRI scan costs about $450 in Britain, it runs $1,420 in the U.S.
Broad Price Variances
Due to the complexity of the nation’s healthcare system, and the fact that there are no established prices for care services, providers may almost charge what they wish. Amounts charged for the same service tend to hinge on the payer and geographical area.
Ultimately, healthcare is so expensive in the U.S. due to an array of factors and variables. Those include high administrative costs and the fact that the government plays a lesser role in negotiating healthcare prices, compared to most other developed countries.
Your Samsung phone could lose access to your Google contacts
Top VPNs to Enhance Your Gaming Experience in 2023
Save a ton of money on a new Samsung 990 PRO solid-state drive
Samsung’s QD-OLED panel is used in MSI’s new flagship gaming display
E-Sports Boom: How Technology is Changing the Face of Competitive Gaming
Thanks to a partnership with LG, Samsung will soon release OLED TVs at lower prices
How to Save or Unsave Posts on LinkedIn
How to Change your Skype Background on PC
The 14.3 GB/s PCIe 5 SSD from TeamGroup wants to be the fastest consumer drive
How to Make Your Sim Have a Girl Baby in The Sims 4
Hades – Battle out of Hell Early Access Available at Epic Games Store
The Next Final Fantasy XIV: Shadowbringers, Coming Soon in Summer 2019
ELLI is Coming to Nintendo Switch In January, 2019
US Government Sector Employees Banned from using any of Huawei Devices
Red Dead Redemption 2 PS4 Stunning Redefine Support
Gaming5 years ago
Sword Art Online Season 3 Trailer is out Now!
Android1 year ago
Some Great Entertainment App Options to Explore on Android for Anime
Gaming2 years ago
Is It Really Addiction From Online Games Harmful To Your Health?
Microsoft8 months ago
How to Download Microsoft Word on your Chromebook