Why Is US Healthcare So Pricey?

You might have heard that the United States spends more on healthcare than any other country. But why is that? Let's dive into this complicated topic. After the shooting of UnitedHealthcare CEO Brian Thompson, people started talking about American healthcare and its high costs. The suspected shooter, Luigi Mangione, mentioned something interesting in his handwritten notes. He said that the US has the most expensive healthcare system in the world, but it only ranks 42nd in life expectancy. So, is it true that the US spends the most on healthcare? Yes, it is. When we add up all the money spent on healthcare by people, governments, businesses, and organizations, and divide it by the total population, the US comes out on top. This includes spending on personal health care like medicines and hospital visits, as well as collective care like public health services and health administration. In 2021, the World Health Organization (WHO) found that the US spent just over $12, 000 on healthcare per person. The only other country that spent more than $10, 000 was Switzerland, with nearly $10, 900. But when the spending is adjusted for the cost of living in each country, the US still spends more than anyone else. In fact, it spends about $12, 000 per person, while Switzerland spends around $9, 000.

The Organisation for Economic Co-operation and Development (OECD) also collected data, and in 2022, they found that the US spent nearly $12, 600 per person on healthcare. The next highest spender, when adjusted for living costs, was still Switzerland, with just over $8, 000 per person. It's true that wealthier countries tend to spend more on healthcare. But countries like Denmark, Switzerland, Ireland, Luxembourg, and Norway are all richer per person than the US and spend much less on healthcare. For example, Ireland spends less than half of what the US does. Now, let's talk about life expectancy and health outcomes. The US isn't doing so great in this area. It's behind many other countries. The CIA World Factbook ranks the US 35th in life expectancy, while the WHO ranks it 45th. Before the pandemic, in 2019, the US was ranked 40th. So, why is US healthcare so expensive, and why doesn't it lead to better health outcomes? That's a complex question with many parts to it. It involves things like the cost of drugs, hospital stays, and administrative tasks. It also involves how healthcare is paid for and who pays for it.

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