Why Healthcare is Expensive in USA [Reasons for Costly Healthcare in United States]


United States of America is suffering from high cost of healthcare and is about twice as expensive as it is in any other developed countries around the world. A lot of people suffering due to healthcare debt, thanks to high-cost of medical fees and drug prices. A higher health insurance premium, low wages (compared to healthcare cost), and out-of-pocket expenses, these are the main expenses for this situation.

Healthcare cost in USA is one of the highest in the world. In the United States of America, most of people spend their money either on health insurance or health related expenses throughout their life.

Healthcare Cost in USA
Healthcare Cost in USA

Why Healthcare is Expensive in USA [Reasons for Costly Healthcare in United States]

1. Administrative Costs

In the United States, an administrative cost is one of the reasons for high cost in healthcare industry. The cost of administrative section is astronomical. Based on latest research, about one-quarter of healthcare cost is associated with administration.

2. Drug Costs

A drug cost is one of the highest in the United States of America compared to other developed countries. In many countries, the Government negotiate and cut the drug prices with the drug makers to make it available to larger population. In the US, it is not possible as the Congress created Medicare Part D, it specifically denied Medicare the right to use its power to negotiate and lower the prices for drugs.

3. Defensive Medicine

In the US, most of doctors are afraid of medical negligence court cases and claims. Hence, they ask for multiple and several tests when doctor knows the diseases. A good number of patients have to pay money for defensive medicine. It is one of the most standard practices among the US doctors.

4. Expensive Mix of Treatments

Compared to other developed countries especially OECD, the US use more mix of treatments. In the United States of America uses three times as many mammograms, two-and-a-half times the number of MRIs and does 31% more Cesarean sections. In most of cases, the healthcare cost for this types of treatment are expensive compared to other types of treatments.

5. Wages and Work Rules

A wage and work rules are one of the most important things which drive up costs in healthcare. The National Commission on Physician Payment Reform is working with the Congress to implement 12 recommendations for changes to get control over physician pay.

Lasik Eye Surgery Cost in NYC is one of the highest in the world. If you do the same medical procedure in India, and other developing countries, you have to pay very less i.e. almost less than half of the price.

Article Title: Why Healthcare is Expensive in USA [Reasons for Costly Healthcare in United States]
Article first published on April 27, 2019.