Reasons Healthcare Is So Expensive in the U.S.

1. Administrative Costs:-

The Harvard economist David Cutler says “the administrative costs of running our healthcare system are very high. 

2. Drug Costs:-

Another major difference in health care costs in the U.S. and every other nation is the cost of drugs. In most developed and developing countries, the government negotiates drug prices with the drug makers, but when Congress govt created Medicare Part D, it specifically denied Medicare the right to use its power to negotiate drug prices. The Budget Office has found that just by giving the low-income holders of Medicare Part D the same discount Medicaid recipients get, the federal government would save $116 billion over 10 years. 

3. Defensive Medicine:-

Yet another big driver of the higher U.S. health insurance bill is the practice of medicines. Doctors are afraid they will get sued, so they order multiple tests even when they know what the diagnosis is. 

4. Expensive Mix of Treatments:-

U.S. medical practitioners also tend to use a more expensive mix of different treatments. According to a 2018 report by the OECD, when compared with other developed countries, for example, the U.S. nation uses three times as different mammograms, two-and-a-half times the number of MRIs and does 31% more Cesarean sections. This will result in more being spent on technology in more locations. Another key part of the mixed treatment is more people in the U.S. country are treated by specialist doctors, whose fees are higher than primary-care doctors when the same types of treatments are done at the primary-care level in other countries. Specialist doctors demand higher pay, which drives up the costs for everyone.

5. Wages and Work Rules:-

Wages and staffing oh health care also drive up costs in healthcare. Specialist doctors are demanding higher reimbursements that drive health costs even higher. The National Commission on Physician Payment Reform was the first step toward fixing the problem; based on its 2018+ report, the commission adopted 12 recommendations for changes to get control over physician pay.

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