Why is Healthcare in the U.S. More Expensive and Called Inferior Compared to Europe?

The healthcare system in the United States is often criticized for its high costs and perceived shortcomings compared to that of Europe. This comparison is based on several key factors, including the structure of healthcare provision, the role of government, and approaches to healthcare funding and management.

1. Differences in Healthcare Structure

Profit vs. Non-profit: In the U.S., the healthcare system is dominated by for-profit institutions, which often carry a substantial overhead. This includes high administrative costs and expensive liability insurance for doctors. In stark contrast, European healthcare systems tend to be non-profit, which results in significantly lower overheads.

One particularly significant aspect is the liability insurance for doctors. For-profit systems incure high costs for such insurance, which can be passed on to patients in the form of higher healthcare costs. Non-profit systems, on the other hand, can offer services at a much lower cost to patients.

2. Universal Healthcare

Universal Health Care: The most significant advantage of European healthcare systems is the near-universal access to care. This means that patients can afford to address minor issues before they become major problems. For example, a cavity can be fixed before it requires a root canal or extraction, and polyps can be removed before rectal bleeding begins. This preventive care helps in managing overall healthcare costs and improving the quality of care.

In the U.S., where access to care can be limited, patients may delay treatment, leading to more severe and costly medical issues in the long run.

3. Role of Government and Negotiations

Government Negotiations: European countries typically negotiate the prices of medications and procedures directly with pharmaceutical companies and healthcare providers. This gives them significant leverage to negotiate lower prices, which are then passed on to the patients. In the U.S., the healthcare system is less centralized, and patients often deal with high drug and procedure costs without such negotiation.

4. Corporate Greed and Political Corruption

Corporate Greed and Corruption: Many critics argue that the U.S. healthcare system is driven by corporate greed and political corruption, where insurance companies and wealthy individuals have excessive influence. This can lead to inefficient spending and a focus on profit over patient care.

Additionally, political lobbying by healthcare industries can result in policies that favor their interests over the general public’s healthcare needs.

5. Cost Drivers in the U.S. Healthcare System

Cost Breakdown: The most significant cost drivers in the U.S. healthcare system are doctor's fees, pharmacy, and administrative expenses. According to sources, these three factors account for a large portion of healthcare spending in the U.S.

Doctor's fees are particularly high, as the U.S. does not have comprehensive controls over the prices that doctors can charge. This allows for substantial variations in fees depending on the region, insurance plans, and the doctor's reputation.

6. Comparison with Other Countries

Global Perspective: Approximately 70 countries worldwide do not charge sick people for their healthcare services. In the U.S., by contrast, patients often bear a significant financial burden, despite a high GDP and medical spending per capita.

These countries achieve their high-quality healthcare through various methods, such as direct government funding, universal coverage, and planned healthcare systems. The result is generally lower costs and better health outcomes for their populations.

7. Conclusion

While the healthcare system in the U.S. is undoubtedly complex and has made significant advancements in medical technology and innovation, it is fundamentally flawed in terms of cost and access. Compared to more regulated and centralized systems in Europe and other countries, the U.S. healthcare system is often seen as more expensive and less effective.

Addressing these issues through better government intervention, more negotiation power, and a more equitable distribution of healthcare resources could lead to improvements in the overall quality and affordability of healthcare in the U.S.