Why Are Americans Paying More For Healthcare?

1. Why Are Americans Paying More For Healthcare? The healthcare debate in the United States has always been a passionate topic. This is because it is clearly proved that America spends notably more on healthcare than any other nation. And this spending is expected to grow in the coming years. However, the strain of spreading the healthcare system is not higher. In fact, there is a need for expansion in the testing and treating of COVID-19 to all the patients that need it, notwithstanding their health insurance status. The huge federal cash inundations have sagged the hospitals that are now burdened with both the coronavirus and regular medical care. The high medical expenses affect everyone, no matter if they are sick or well. And this has directly weakened the spending power of each individual over the last few decades. Also, the salaries may have risen for the American workers, but they still receive the same net pay. And this is because of the increased health insurance charges. Currently, the nation should contract the overspending to stretch the hospital and medical resources for COVID-19.

2. So, let us delve deeper and understand the underlying problem for the high cost of healthcare in America. 1 Multiple Systems Create Waste: The administrative cost is the prime reason why we spend excess on medical bills. As per the studies done by JAMA, the U.S. alone spends almost 8% of its total healthcare money on administrative costs. Whereas, the other ten countries (compared to in the study) spend around 1% to 3%. The U.S healthcare system has separate rules, funding enrollment dates, private insurance like Medicaid, Medicare and out-of-pocket costs for employer insurance. And such programs and plans deal with the multitude of regulations. These activities directly make the largest share of total administrative costs. 2 Drugs Cost Is Rising:

3. High drug price is the other reason that leads to overspending in America. In countries like Europe, drug prices are government regulated. They are also based on the clinical benefits of the medication. With limited regulation on drug prices, America spends around $1,443 per person, whereas other countries spend $749. The insurers in the U.S. are allowed to negotiate the drug price with manufacturers using the facility offered by pharmacy benefit managers. But a Medicare that supports to pay out the hefty payment is not allowed to. 3 The Medical Staff Gets Paid More: On average, a doctor in the U.S. gets paid $218,173 a year. The specialists earn around $316,000. And both these records are way more than other developed or industrialized countries. The care plans managed by the U.S., like HMOs and PPOs, may offer lowered healthcare costs. For instance, a nurse practitioner may charge you less than your family doctor. 4 Hospitals Have Become Profit Centers: The hospital care itself facilitates 33% of healthcare costs. The surgical procedures cost more than the U.S. compared to other countries. Take a look at this: Angioplasty costs $6,390, $7,370 in Netherlands and Switzerland respectively. But it costs $32,230 in America. Bypass costs $32,010 in Switzerland and $78,100 in the U.S. 5 The Healthcare Operates On Defensive Medicine: Researchers have time and again concluded that it is expensive to be sick in America. Not just the procedures but even simple tests are expensive here than in other countries. The medical staff is more concerned about preventing

4. lawsuits. So, if you are ordered a test scan, then get ready to get ripped off. Follow these stats: A CT scan in Canada costs just $97. In Australia, it is $500. But on an average in the U.S., you will be charged $896. MRI scan costs $450 in Britain, but in a typical American hospital, you may be charged $1,420 for the same. 6 The Overall Prices Vary Significantly: Since there is a lack of set prices, and the system is quite complex, the providers charge based on what the market is ready to bear. You can even notice the significant variation in the price based on a geographical area or the payer. These payers could be private insurance, government programs like Medicaid or Medicare. For instance, with COVID-19, the average expense for a patient with an urgent care visit is around $1,696. However, this cost may vary based on the provider from $241 to $4,510. Bottom Line If you check other developed countries, they are finding ways to negotiate the prices of the healthcare system. And such systems do not need high administrative costs either. These countries directly influence the treatments available and the patient’s capability of visiting a specialist. Even though consumers have fewer choices with them, but the overall cost is controlled. We hope we were able to give you the right insight. Right now, the best way of paying COVID medical bills is by collaborating with the professional medical advisor like ClaimMedic. They understand how frustrating it can be to acquire higher medical bills without a source of proper wage during COVID-19. Content source