Compared to other developed countries, healthcare in United States is much more expensive. This expensive cost become a financial burden for households within the country due to higher taxes and premium, and lost wages. This article will elaborate briefly about several reasons that cause this condition.
Something About Healthcare
The reason for high healthcare cost can be read on the following list below:
- Defensive medicine: one of the very first reason why health insurance in United States has a higher bill is due to the defensive medicine practice. Doctors can be sued if they give wrong diagnosis and treatments, so they tend to do various tests despite already knowing the diagnosis to get evidences that support their diagnosis. In a year, approximately 650 billion dollars are spent for the practice of defensive medicine.
- Work rules and wages: specialists demand high reimbursement. The referral decision-making process that is used in United States healthcare system lead to specialists overutilization, which make health cost soaring high.
- Drug costs: this aspect also contributes greatly. Both public and politicians believe that the drug costs in United States are unreasonable. When Medicare Part D was established by the Congress, they denied the right for Medicare to negotiate the prices of drugs. Thus, the price becomes more unreasonable each days with no one can interfere.
- Administrative costs: the main reason that cause the healthcare bill in United States to be very high is the administrative cost to run the healthcare system. Around 25 percent of healthcare cost is related to administration. It is much higher that other countries around the world.
Other than the reasons mentioned above, there are still other reasons, such as pricey mix of treatments and branding. United States is especially lacking in governmental support, which lead to the uncontrollable healthcare cost.