The United States has the highest healthcare costs in the world. It is a $ 3 trillion industry to keep Americans healthy. It consumes nearly 18% of the country’s gross domestic product.
But for all the money we spend on doctors, procedures, and drugs (about $8,000 per person per year), research shows that the economy is not getting a better return on the investment than countries that spend less. In a 2014 survey of 11 health systems in developed countries, the United States ranked 5th in quality and last in infant mortality.
Medicine doesn’t have to be expensive. Canadians, Germans and French spend no more than half of what Americans spend on health care in a year. That’s why many people have to create new ways from where to the the extra funds. Many of them search the websites that contain trustworthy information about payday loans California. If you, for example, are going to issue payday loans Perris CA, better to get acquainted with available lending options as careful as possible.
What is behind the high cost of medical care? The answers are simple but complex; obvious, but somewhat surprising.
Higher prices, not more use of services
Anything related to healthcare in the United States costs more than in other countries. This expense is imposed on to the consumer. Americans are more likely to not to visit a healthcare professional and have no more hospital stops than people in other countries. However, researchers believe that the price of goods and services is higher.
A look at 23 medical services and procedures performed in different countries found that in 22 cases Americans were paying higher prices than patients in other developed countries, according to a survey of International Federation of Health Plan.
The US has an expensive mix of services — high-tech screenings, specialists, sophisticated amenities that fuel high prices. Compared to other developed countries and adjusting for population differences, the US performs more than twice as many MRI scans and three times as many mammograms.
And healthcare in the United States is subject to economic forces such as inflation, which continually pushes the price – and does so at higher rates than other goods and services. From 1987 to 2006, headline inflation was 84%; health care inflation during this time was 214%.
The consumer is usually not a direct payer
Because most Americans receive health care through insurance provided by their employer or government (in the case of Medicare or Medicaid), the part of the cost removed from it. And not caring about the bottom line means providers can raise prices if consumers don’t notice. There is little pressure in the comparative store; when people do this, it can be difficult to get a clear estimate of the cost of the procedures.
Multiple inefficiencies in the US system
The U.S. payment system also provides procedures, so there is little incentive for healthcare providers to restrict tests or treatments. This can lead to more services, increasing the costs paid by insurance companies, which then impose them on consumers.
Because of the many insurance plans and paperwork required to process claims, much of what happens in a hospital or doctor’s office is not medical at all. Unlike countries with centralized single-payer systems that have private insurance, about 25% of health care costs are administrative.
Because members are in the risk pool, about three quarters of policyholders pay for the costs incurred by about a quarter of people with chronic health problems.
In terms of performance, the US ranks last among 11 countries in the latest Commonwealth Fund study; the first and second were entered by the USA and Sweden.
A competitive model can drive some costs
As healthcare providers compete for patients, they invest in equipment, luxury offices, marketing and private rooms, which increases their costs. It also creates redundancy and inefficiency, which also drives up prices. Their fees must be high enough to cover the significant costs of abuse insurance.