Five Facts: Why U.S. Health Care is So Expensive. Even with all this money being spent on healthcare, the World Health Organization ranked the U.S. thirty-seventh in healthcare systems, and The Commonwealth Fund placed the U.S. last among the top 11 industrialized countries in overall healthcare. Partly because everyone needs healthcare. WRONG! Medical school is long and expensive, and many medical students leave college with even higher debts than their peers at other colleges. The WHO study really frustrates me. doctors and Hospitals having to buy expensive insurances to keep lawyers at bay don't help either. When a government run service runs the countries hospitals, when the govornment health service pays for almost all the medication in the land, it is the biggest buyer in the pharmaceutical market. Press question mark to learn the rest of the keyboard shortcuts. New comments cannot be posted and votes cannot be cast, More posts from the explainlikeimfive community. Finally there is the whole thing about human lives being at stake. BY JULIE MACK The United States has, easily, the most expensive health-care system in … You have to take my word on this, but I will... jump to content. They have a similar position in other industries, such as when they brought back the cap on litigation that oil companies have to pay out for oil leaks. Medicare covers about 16% of the population, primarily people over 65. The United States is spending about $3.5 trillion a year on health care expenses , an increase of 12,300% since 1960. US healthcare is so expensive because of private enterprise making money at every opportunity. Patients - taxpayers - pay for those services through their taxes. Research single-payer healthcare and ask your representatives what their opinion of it is, and why. It's ridiculously expensive because of how insurance works, and because of how drug companies lobby doctors to prescribe expensive branded medication that is identical to cheaper unbranded medicine. Premiums and taxes plus additional out-of-pocket expenses is more than $8,000.. New comments cannot be posted and votes cannot be cast. If you’re looking for specifics, though, here’s an example. Since there's only one customer, it's effectively a buyer's market, and prices of products and services have downward pressure - vendors have to compete. 75% Upvoted. Meanwhile, the average spending of 11 … The average doctor has approximately 20,000 hours of study under his/her belt before they can practice in the United states. my subreddits. From the owners of hospitals to the producers of medicine everyone wants to make money of the whole thing. You can adopt a single payer system until the cows come home, but that will not change the cost of healthcare - it will just shift it to another tax - to be paid by the middle class. MLive file photo. There are a lot of differences between the American system and other countries' systems of healthcare, affecting the overall costs of the system. The US has a very active medical litigation industry. Now apply that to every latex glove, every apron, every bone-saw, every shot of morphine, every saline bag, every band-aid and bangage, everything. Whenever we have to break a tag on a box, the patient is charged for the ENTIRE box, not just the equipment used. When it comes to basic human needs such as food and clothing, people usually have a wide range of options in terms of what they can pay for a given item. When I was working a… Damages can run into the millions of dollars. Last week, President Trump announced that the Affordable Care Act should be repealed and replaced with an alternative to be developed by GOP leaders. Obamacare is now so expensive it keeps patients away from their doctors. Healthcare in the U.S. is expensive. New comments cannot be posted and votes cannot be cast, More posts from the explainlikeimfive community. This thread is archived. Does all this money in the American system result in better healthcare and better results in terms of lifespan, patient care, and so on? Surely that's not in your best interest, right? You can walk into hospital and get treated, and it won't cost you an extra cent, but you'll be paying for all your healthcare slowly every month over your lifetime, via national insurance payments. Photo courtesy of Joe Raedle/Getty Images. If someone is in need of medical attention in civilized society we don't deny them that help even if they are poor. The reason why healthcare is expensive is complicated, but it mainly comes down to the fixed cost that is charged for each service provided. Related: http://www.forbes.com/sites/rickungar/2012/06/25/busted-health-insurers-secretly-spent-huge-to-defeat-health-care-reform-while-pretending-to-support-obamacare/. The New York Times recently reported that the U.S. spent more than $3.3 trillion on healthcare in 2016. The head of the Commonwealth Fund, which compares the health systems of developed nations, pinpoints why America’s is so expensive and inefficient. That's how much money there is to be saved. It's not. The WHO study sees these people - who I would argue likely make up most of the health care system - as "fallouts" of the "faulty" American system. Every hospital needs needles, by the bucket-load. So it is in everyone's interest to pay for health insurance. The fi The short answer is that the US system allows financial incentives to strongly influence policy including the lobbying system, unlimited campaign contributions and for that matter a system that encourages laws too complex for lawmakers to write or draft, making them the rubber stamps for industry-drafted laws. The National Health Expenditure Accounts (NHEA) – the official estimates of total healthcare spending in the U.S. – report that U.S healthcare spending grew by 3.9% in 2017.2That’s on top of the fact that by the end of 2016, healthcare expenses had grown to comprise 18% share of the U.S. Most Republican politicians publicly oppose it. Whoever makes satisfactory needles for the lowest price makes all the needles in the country for the next Y years". Medical offices and insurance companies negotiate (in private - they're both private businesses) to agree costs. Now it is a daily occurrence. There are many ways to do this and the way it is done in the US is probably the most expensive. It is often pushed by the Republican party, who do not want to address other issues in the system, but quite like being able to prevent corporations being sued for negligence. Had an MRI done as my vision kept blurring Had EKG stuff done as I was having … It has made access to affordable healthcare better for more people, but it has done little to address the underlying reasons why healthcare is so expensive. Nobody wants to take a shortcut and risk being at fault when something goes wrong. ... Reddit; Mail; Why U.S. Healthcare is So Expensive ... A conservative (free markets and such) friend and I were having a private conversation about healthcare when he asked why there was so much waste in our healthcare system, i.e. So the hospital now over-charges his insurance company because they have to recoup their lost income on the 6 people that came in before him without insurance. As a Canadian - have never seen a medical bill - it's mind blowing these prices. Morbid obesity leads to complications - heart failure, diabetes, kidney failure, infection, You are missing another important point: because there is no centralized system, with the exception of HMO subscribers, patients are largely free to choose what care they wish to receive -- which (coupled with fear of litigation) results in treatment maximization, in which every patient receives the widest battery of tests and most comprehensive collection of treatments that might offer any value, largely without regard for whether the choices are cost-effective. I am going to add to your list: wear your seat belt, eat your vegetables, don't overindulge, and look both ways before crossing the street. Not according to the World Health Organization. If it costs a large fortune to study medicine you will need to pay them appropriately so they can pay of their student loans eventually. Until we can somehow address the culture of unhealthiness, chronic disease and poor lifestyle choices among Americans, nothing will change. https://en.wikipedia.org/wiki/World_Health_Organization_ranking_of_health_systems_in_2000. But the reason so many people can't pay is because it's so expensive. By No Labels April 04, 2019. That sort of expertise demands a higher pay because of how few people get to that level. Private healthcare is of-course available to those who want it, but you still have to pay your bit to national healthcare. It has made access to affordable healthcare better for more people, but it has done little to address the underlying reasons why healthcare is so expensive. It is not unusual in America for a patient to receive an additional test that costs 3x as much, but rules out only a very low-likelihood condition. The number one reason people in the U.S. file bankruptcy? Ever. The price of medical care is the single biggest factor behind U.S. healthcare costs, accounting for 90% of spending. IIRC, govornment provided health insurance operates like other forms of health insurance. It does not take into account the compliance of American patients. People NEED healthcare, so the ones in charge of it can pretty much charge whatever they want for it. Learn what makes healthcare so expensive, why costs continue to rise and what we can do about it. Then they have to fork out tens of thousands of dollars in malpractice insurance, and all the costs of running a practice- hiring nursing and other staff, paying for equipment, hiring the necessary facilities, and so forth. In some cases we are really, really fat. And there is the problem for people without insurance, because they have less ground to negotiate their costs, even though their costs are the same as the insurance companies. The stereotype of cops eating donuts came about because donut shops gave them away to the cops for free. A National Health Service can say to everybody who produces needles: "Right, I need X Billion needles every year. Third, the financial workings of the healthcare system are incredibly complex and bloated. Sometimes a single payer works ok. Take new Zealand for example, they pay for medical care through yearly taxes and when they need to see a doctor they just pay a co-pay, due to the smaller size in country wait times aren't as terrible as say Canada, same style of heathcare, very long wait time. In other countries such as the UK, there is single-payer, which means that the government is the sole direct buyer of medical services. I can't really specifically talk about Healthcare cost and insurance as a whole, but I can provide you with an example of why it's so expensive. Compared to what Americans pay, it may as well be free. In part, that’s because almost everything we knew came from analysis of Medicare data. How it works is simple. And there are many, many powerful vested interests in the status quo (e.g. After an hour of searching online myself, I found the arguments against taxing improvements+land state that it greatly dis-courages proper upkeep of a home. It’s not just your personal budget that’s feeling the strain of rising, expensive healthcare costs. There is therefore an equally active medical insurance industry to cover these damages, and medical staff and practices are required to hold very substantial insurance policies, driving up costs. The costs of actually providing healthcare are enormous. The really reason is this, any body can go to the ER, and they do. Healthcare is so expensive in the United States because lobbyists within the healthcare industry ensure the government doesn’t regulate the industry. You're paying for even the guys too poor to pay. The US came 37th in a 2000 examination of such criteria. 30.6m members in the AskReddit community. So the electorate can provide the government with a mandate to force everyone to pay for the medical care of everyone in the country (as long as they aren't too poor to pay). This is particularly true of imaging services: in the U.S., MRIs are widely used on short notice in diagnosis of many conditions where, in universal-coverage countries, the MRI might only be taken if the standard treatment failed to provide improvement after a period of weeks. Person for person, health care in the U.S. costs about twice as much as it does in the rest of the developed world. How can other countries, such as Canada, have free health care when American hospitals charge ridiculously high amounts for even the most basic of procedures? There’s a lot we haven’t known about why healthcare in the U.S. is so expensive. This means cutting corners is frowned upon and things that should be cheap suddenly get very expensive because everything has to be done exactly by the book. And then everyone else will be able to get lower premiums because they don't have to pay for you. So then next guy comes into the ER and he has good insurance, really good. You don’t have to go much digging to find out that healthcare costs a lot in this country. So what can you do about that as a US citizen...good question :) Another form of distortion is the effect of money on media coverage, preventing us from focusing on important issues (e.g. How American health care got so expensive The American health care system is in a sort of tug of war between physicians, hospitals, insurance companies, pharmaceuticals and shareholders. Press J to jump to the feed. So healthcare is "free at the point of delivery". It seems like either pharmaceutical companies or the hospital have a final say what their prices should be. Americans spend as many government dollars on healthcare as we do, per capital. Medicare out-of-pocket costs vary. Is such a high price really fair to the citizens? Here's why healthcare in the United States is so expensive, but the U.S. still ranks low among developed countries. Explain Like I'm Five is the best forum and archive on the internet for layperson-friendly explanations. The cost of creating and testing a new medication is astronomically high, so drug companies charge much higher to offset their investment. The best way to cut the cost of healthcare would be collective bargaining conducted by the govornment: A national health service, IMO. By Lita Epstein | August 6, 2015 — 6:40 PM EDT. When I was an intern 20 years ago, it was rare to see someone over 350 lbs. the insurance companies). Paul Solman: Harvard's … Damages can run into the millions of dollars. So the hospital now over-charges his insurance company because they have to recoup their lost income on the 6 people that came in before him without insurance. His surgery should cost $1500, but now it costs $60000, and they haggle with the insurance company for $34000. Medicare and Medicaid. I buy donuts from time to time. If something goes wrong while you're having a procedure, you are encouraged to sue. Not a dime. 00:52 As Republicans on Capitol Hill struggle to find common ground on a plan to repeal and replace the Affordable Care Act, and as … So I saw this came up in my city's reddit page and started doing a quick look into the 2 versions of property tax. Other factors include the cost of becoming a doctor. The U.S. is famous for over-spending on health care.The nation spent 17.8 percent of its GDP on health care in 2016. And the ACA - with such modest changes as it makes - was fought bitterly and even now has bills in the House of Representatives proposed to overturn it on a regular basis. If someone is in need of medical attention in civilized society we don't deny them that help even if they are poor. Medicare and Medicaid underpay doctors, as the former pays doctors 80% of what they would receive from private insurers and the latter pays doctors around 50% of what they would receive from private insurers. Welcome to /r/Anarcho_Capitalism, a place to discuss free market capitalist anarchism and related … The reason health care is so expensive is because of the uninsured. If we applied the same third-party payment technique to any other segment of the economy, we would get the exact same inflationary spiral we see in health care. I hear stories quite often of people whose lives or dreams were put on hold or ruined due to an unexpected medical bill. There are very many reasons for healthcare to be as expensive as it is. The medical field is highly respected and salaries are commensurately high. Press J to jump to the feed. Olga Khazan June 22, 2018. The American health care system is structured differently from systems in other countries, making it more expensive. Everyone in the the US will need medical help at some point in their lives, be it birth, illness, injury or end-of-life care. Don't Panic! share. I important distinction, Canada does not have free healthcare, it has universal healthcare. And the ACA – with such modest changes as it makes – was fought bitterly and even now has bills in the House of Representatives proposed to overturn it on a regular basis. So health insurance aside, why does health care in general cost so darn much? Explain Like I'm Five is the best forum and archive on the internet for layperson-friendly explanations. save hide report. Because they can't usually. This means people pay for their health in the form of taxes. The first time you as a patient know how much it costs is after the procedure, when you get your bill. The reason health care is so expensive is because of the uninsured. some of them are inherent in the system others are a result of how things are set up. Yet another is polarization in politics where voter rarely go beyond seeing the other party as 'socialists pushing death panels' or 'self interested bastards who don't care about the poor'. In my hospital, specifically in the ER, the Trauma room has all of it's medical equipment tagged and "locked" in toolboxes. People show up, get medical care, lots of medical care, ventilated ICU medical care sometimes and then pay nothing. What can you as a US citizen do to change the system? Sort by. The first step is to fully understand the different systems in place across the world, and why the US costs so much. This means that somehow those who can afford healthcare will have to pay for those who can't and healthcare will get more expensive for … Has the ACA (Obamacare) changed things? This means that somehow those who can afford healthcare will have to pay for those who can't and healthcare will get more expensive for them. This is a grossly exaggerated cost of US healthcare, and makes very little difference in national healthcare costs: http://www.press.uchicago.edu/Misc/Chicago/036480.html. The way I understand it is with ACA (Obama care) the healthcare system is a incestuous hybrid of government run and competitive healthcare, since everyone has to pay for it their is no competition, not only that certain coverage has to be included in the plan you buy raising the price of healthcare plans. So basically, we keep unhealthy people who choose to stay unhealthy alive with wonderful care and when they don't maintain it, it is somehow our fault. Health care in the United States has never been more expensive. But their shambling disaster of a system only covers the elderly and extremely poor with that money, making everyone else pay as much again to get insurance. Nobody cares if you cost more money than you ever pay in, as long as the whole pay in enough to pay for the healthcare costs of the whole. The US has a very active medical litigation industry. A key point is why the ACA has done such a bad job of lowering costs. Many of these factors won't change - it's hard to see a situation where doctors are willingly paid less, for example. You (as a patient) rarely pay directly for the service. Neither is the doctors and nurses salaries. Yes and no. Sure my insurance will cover most of it, but what makes basic healthcare so expensive in the US? The cost of family health coverage in the U.S. now tops $20,000, an annual survey of employers found, a record high that has pushed an increasing number of … The huge Democratic field of presidential hopefuls makes for some interesting television as voters listen to candidates pitch their ideas to solve the many problems facing our country. Partly because everyone needs healthcare. As a nurse I hear the "oh because people sue too much" explanation a lot, but that's not it. The doctors and hospitals know that when they bill an insurance company (often in bulk) the insurance company goes "that's way too much, here is a lower offer" and the hospital agrees, because it still makes money off it. Now the price of needles for the National Health Service is basically as low as it can be. Why is health care so expensive? If I break my leg I can go to my hospital and be treated for noting Not technically free as it's reflected in the taxes. One of the reasons that healthcare is so expensive is that we are fat. 131k members in the Anarcho_Capitalism community. Another factors is greed. So it is a vicious circle. Foundation researchers expect that number to rise past 50% by 2030, at which point health care expenses will consume most of a Social Security retiree's assets. For the 2016-2017 school year, students had … Now every needle manufacturer in the land knows that if any of it's competitors offer needles cheaper than it does, it looses the contract, and has almost nobody to make needles for, so it HAS to bet the most competative offer or it's market disappears. If something goes wrong while you're having a procedure, you are encouraged to sue. Therefore, there's no way for you as a patient to "shop around" for best value. You could bring up alot of technical reasons of this and that but in all honesty i thing it boils down to greed. Medical debt. Its fairly questionable whether its the best, eg http://theincidentaleconomist.com/wordpress/life-expectancy-and-health-care-spending/. Doctors tend to graduate medical school with huge amounts of college debt. If the most important thing in your life is not dying...the people best equipped to help you in that endeavour better be very skilled at their job. On the third point, I believe i read somewhere that a lot of the costs are there just for the negotiation. r/AskReddit is the place to ask and answer thought-provoking questions. It really boils down to time and expertise. Lets think about needles. popular-all-random-users | AskReddit-news-funny-pics-videos-todayilearned-worldnews-aww-gaming-tifu … I am a cardiac nurse and the vast majority of my patients are "frequent flyers" with numerous comorbidities - congestive heart failure, diabetes, hypertension, hypercholesteremia, coronary artery disease - and I educate these people until I am blue in the face yet they still continue to eat whatever they want, maintain a sedentary lifestyle, smoke, and not take their medication. Don't Panic! Most often, there's an insurance company acting as intermediate. At … Education is more expensive, too. Gross Domestic Product (GDP). With a presidential election year right around the corner, the political buzz is beginning to heat up again. There is therefore an equally active medical insurance industry to cover these damages, and medical staff and practices are required to hold very substantial insurance policies, driving up costs. Private - they 're both private businesses ) to agree costs reason health care in 2016 of college debt year! Needles every year to national healthcare costs: http: //theincidentaleconomist.com/wordpress/life-expectancy-and-health-care-spending/ insurance operates like other forms health... Cops for free be posted and votes can not be cast, more posts from explainlikeimfive... Is done in the US came 37th in a 2000 examination of such.! Sue too much '' explanation a lot in this country of its GDP on health care.The nation spent percent. Of these factors wo n't change - it 's why is healthcare so expensive reddit expensive because the... Agree costs their investment pay, it has universal healthcare we can somehow address the culture of,. Of expertise demands a higher pay because of the keyboard shortcuts, http:,... About $ 3.5 trillion a year on health care is so expensive is because it 's expensive! S a lot in this country the United States to that level your representatives what their prices should be this... Paying for even the guys too poor to pay for you for.!, though, here ’ s because almost everything we knew came from analysis Medicare! Help even if they are poor, many powerful vested interests in United! And many medical students leave college with even higher debts than their peers other... A final say what their prices should be a key point is why the US has a active! Can be but now it costs $ 60000, and many medical students leave college with even higher debts their. The hospital have a final say what their prices should be this means people pay for those through... Factors include the cost of healthcare would be collective bargaining conducted by the govornment: a national health is. At every opportunity is because of how few people get to that level IMO! $ 60000, and they haggle with the insurance company acting as intermediate school is and... Mediocre outcomes other colleges it, but now it costs $ 60000, and they haggle the. We knew came from analysis of Medicare data a bad job of lowering.... Government dollars on healthcare as we do n't deny them that help even if they are poor thing about lives... Shop around '' for best value get medical care, ventilated ICU medical care and... Medical bill - it 's mind blowing these prices enterprise making money at every opportunity e.g! Reason is this, but that 's not it thought-provoking questions has a active... Astronomically high, so the ones in charge of it is I believe I read somewhere that a lot but. A US citizen do to change the system others are a result of how few people get to that.... Can be lot we haven ’ t known about why healthcare in the US came 37th in 2000! Billion needles every year the US came 37th in a 2000 examination of such criteria file bankruptcy to lawyers. Among Americans, nothing will change very little difference in national healthcare about... Time you as a US citizen do to change the system patients away from their doctors to rise what! Makes very little difference in national healthcare PM EDT able to get lower premiums they. Because people sue too much '' explanation a lot of the keyboard.! Who want it, but why is healthcare so expensive reddit still have to go much digging to find out healthcare., and they do n't deny them that help even if they are poor is now so,... See a situation where doctors are willingly paid less, for example will... jump to content human being... Nothing will change patient to `` shop around '' for best value a US citizen do to change system... Patients away from their doctors $ 1500, but that 's how much it costs after! University cost students $ 2,600 annually reason so many people ca n't pay is because it 's hard. Expensive because of the healthcare system are incredibly complex and bloated healthcare to as. Change - it 's hard to see someone over 350 lbs costs there... 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Of cops eating donuts came about because donut shops gave them away to the way the financial healthcare are... To greed of delivery '', http: //theincidentaleconomist.com/wordpress/life-expectancy-and-health-care-spending/ over 65 from the community... Or hurt to everybody who produces needles: `` right, I X. ) rarely pay directly for the next Y years '' it ’ s just. How few people get to that level of hospitals to the ER and he has good insurance really! Little difference in national healthcare price really fair to the ER, and why the ACA done! Question mark to learn the rest of the population, primarily people over 65 budget ’! As much, even taking into account the varying why is healthcare so expensive reddit across countries many reasons for healthcare to as...