Why Does Healthcare Cost More in the USA Despite Poorer Outcomes and Lack of Universal Access?
It is a question that often arises: why do Americans pay more for healthcare compared to their counterparts in other industrialized nations, while often facing worse outcomes and barriers to access? This article explores the underlying reasons and addresses the impact of profit-driven healthcare on the American system.
Rising Healthcare Costs in the USA
The high cost of healthcare in the USA is a pressing issue. Despite boasting advanced technology and highly trained medical professionals, the country spends significantly more on healthcare than other industrialized nations. For instance, while Medicare charges $175 a month to cover 80% of negotiated fees, private insurance companies charge nearly $125 to cover the remaining 20%. This disparity raises essential questions about the role of profit in the healthcare system.
Profit-Driven Healthcare System
The crux of the issue lies in the USA's profit-driven healthcare model. Unlike healthcare systems in countries like Canada, Europe, Australia, and New Zealand, which are often not-for-profit, the USA's healthcare industry is primarily focused on profit. Insurers, pharmaceutical companies, and hospital owners prioritize financial gain over patient care, leading to higher costs and limited access to quality healthcare.
Excessive Profits and Bribery
One of the primary reasons for the high costs is the greed inherent in the healthcare system. Politicians and other decision-makers in the US often receive significant bribes from big pharmaceutical companies and healthcare providers, which influences policy and legislation. This lobbying does not represent democracy but a form of corruption. In countries like Canada, it is illegal to bribe politicians, ensuring a more transparent and fair system.
Insurance Company Profits
Insurance companies play a crucial role in this profit-driven model. They need to maximize profits from premiums while ensuring minimal payouts to keep their business viable. This focus often leads to restrictive coverage and denials of necessary medical treatments. Private insurers, in particular, cover fewer people, leading to higher premiums. For example, a monthly premium of $125 to cover only 20% of the costs is significantly higher than the $175 Medicare covers for 80%.
Pharmaceutical Costs
The pharmaceutical industry is also a significant contributor to the high cost of healthcare. Inizzes, for instance, have seen their prices skyrocket without clear justification. While the administration has attempted to bring down the cost of insulin from $16 to $35, the CEO of one of the largest healthcare companies in the USA is paid over $13 million annually. This level of compensation demonstrates the prioritization of profits over the well-being of patients.
Systemic Issues and Organizational Differences
The USA's healthcare system is designed to generate profits, which often leads to inefficiencies and a lack of focus on patient outcomes. By contrast, healthcare in many other countries is primarily a service provided by not-for-profit organizations. This organizational difference allows for better resource allocation and higher-quality care.
Universal vs. Profit-Driven Healthcare
It is worth noting that various aspects of American infrastructure, such as police and fire services, are funded through taxation and are not-for-profit. These services operate for the benefit of the community, not for profit. It is ironic that so much fuss is made about introducing universal healthcare, which would provide similar benefits to the public sector.
Conclusion
The high cost of healthcare in the USA is a complex issue rooted in profit-driven practices, political corruption, and systemic flaws. While the USA's healthcare system has its advantages, such as cutting-edge technology and skilled professionals, the focus on profit often comes at the expense of patient care and equitable access to healthcare. Addressing these issues requires reforms that prioritize patient well-being over financial gain.