Americans use more high-price health services than people in other wealthy nations, and Volume X Unit Price=Cost. Unfortunately, these enormous expenditures (3.3 trillion in 2016, with roughly 1/3 of this for hospital care) do not equate to value and overall health. One-third to one-half of care in the U.S. represents waste and these unnecessary costs are woven into not only insurance premiums, but also taxes.
Financial burden is just one of the harms. Health care itself is now recognized as the third leading cause of death in the US. It is tragic when death, or even harm, is caused by services that were not needed in the first place. But remember, cost to you is someone else’s revenue. More on this in upcoming blogs. In summary, the cost of health insurance is a mirror reflection of the cost of health care. Health insurance is expensive because U.S. health care is expensive. Until or unless care becomes more affordable, health insurance will continue to extract a hefty price from American businesses and families.
References
3.3 trillion in 2016, with roughly one-third of this sum for hospital care. Retrieved from Health Expenditures, https://www.cdc.gov/nchs/fastats/health-expenditures.htm
Roughly one third to one half of care in the US. represents waste. Berwick, D., & Hackbarth, A. (2012). Health Policy Brief: Reducing Waste in Health Care,”
Health Affairs, Retrieved from http://www.healthaffairs.org/healthpolicybriefs/
Health care itself is now recognized as the third leading cause of death in the US. Makary, M., & Daniel, M. Medical error—the third leading cause of death in the US. British Medical Journal, 353. DOI: https://www.bmj.com/content/353/bmj.i2139