Saturday, October 28, 2023

The Cost of Health Care in the USA

 The USA spent $4.3 trillion on health care in 2021, up 2.7% and averaging $12,914 per person.  (per cms.gov)

There are many things we could do better but some of the criticism of our healthcare system is misplaced.   The following all contribute to the high cost of health care in the USA.  This is not a comprehensive analysis, but rather just a quick list I put together tonight with a bit of research to try to quantify my numbers.  I encourage your contributions to this question:

1)  We spend a lot of money on health care during our last six months of life.  Other countries don't do that.  An article argued that we grossly overstate the percentage of health care costs that are in the last year of life, but even this study found that it was 13%  and that was in 2011.

2)  Our medical malpractice lawsuits cost between $50 billion and $150 billion annually.  As that source indicates, lots of studies are biased.  There are at least 3 sources of cost: liability and court costs, unnecessary tests and treatments and higher liability insurance premiums for doctors.  Whether related to this reason or not, we do a lot more screening for cancers.   As a result, we find small cancers that might never develop, yet spend money treating them.  I believe personally have encountered unnecessary heart care and endocrine care.  As a criticism of our health care system, my doctor told me not to worry about my severe chronic arthritis until it hurt, at which time he’d give me medication.  I went to a functional doctor who suggested a dietary change that reduced my arthritis.

3) Each hospital strives to have the most current (expensive) equipment.  Other countries don't have such high technology available in so many places.  In addition to the cost of so much technology, it encourages over-use.

4) Many of us want the health care system to address anything that goes wrong.  We should take more personal responsibility and change our practices to have better health,  The OECD averages 9.4 hip replacements per 1000 people over age 65; we average 15.6.

5) We are sedentary people, increasing our health system needs.  We are more likely to have multiple chronic conditions.

6) Our military helps protect the world, but returning vets have significant needs.  Unfortunately, we don't address those effectively, causing a lot of other problems.

7) People from other countries come here for help.  That might raise our costs.  It also suggests that our system may not be so bad.

I’m not denying that we can improve our system.  I’m simply suggesting that we be fair and appreciative of the service we get and ways we contribute (unnecessarily perhaps) to the costs. 

 

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