The high cost of American healthcare (part 2)

Yesterday, as I stumbled upon that study by the OECD “Our world in data – 2023” and featured it later in my blog, I was shocked at the disparities between healthcare costs and life expectancy per country. 

I was especially stunned at the high cost of healthcare in the US that stands out, for no good reason, with a lesser outcome, and appears to be a murky issue with multiple contributing factors. High administrative costs seem to excessively burden the US healthcare system, with its jungle of insurance companies, providers, and government agencies. 

This complexity leads to high administrative costs, including billing, claims processing, and paperwork. Further the US healthcare lacks cost transparency as prices are often opaque and vary significantly across providers and regions, making it difficult for patients and payers to understand and compare costs. Also, doctors often order unnecessary tests and procedures to protect themselves from malpractice lawsuits, driving up costs.

Then, there are the elevated doctors and surgeons salaries that are generally higher than in many other developed countries. This is due to factors such as high medical school debt, malpractice concerns, and the competitive nature of the healthcare market. The same is also true for nurses, technicians, and other healthcare professionals that also receive higher remunerations. 

Excessive pharmaceutical costs further burden the overall cost, as the US has some of the highest prescription drug prices in the world. Lack of price controls and the nefarious influence of pharmaceutical companies on politicians contribute to that situation. Unlike many other countries, the US government lacks the will to negotiate drug prices with pharmaceutical companies as they target and bribe members of congress. 

At his point the insurance middleman impacts the costs even further, with significant administrative costs associated in processing claims, managing networks, and marketing their products. Being for-profit businesses, insurance companies aim to generate more profits for their shareholders. This along with limited competition, lead to higher premiums for consumers. 

It's important to note that these are just some of the factors contributing to the high cost of healthcare in the US. The issue is complex and multifaceted, and there is no single solution, but that’s where Musk should start working to make a big dent in the US debt!