eli5: How come health care cost so much more in America vs. other countries?

Question

I understand that insurances covers part of the cost. However, the total cost (before coverage) is still much higher in America. Why?

Is the supply chain different? Are doctors and staff paid better in America?

In: 188

Answer 1

Another factor to high prices is by law, Hospitals have a duty of care. If you walk in, or more likely are brought in by someone and you are dying, the staff have a duty to save your life regardless if you have insurance or can pay. They can’t withhold life saving medicine or service while you are dying. They will stabilize you and send you off with a bill knowing they will never collect.

Another factor is the price must be the price. They can’t have price $x for insurance and $y for no insurance. Insurance is going to ask why and only pay out the lower amount. So hospitals have to have 1 price and that price needs to cover not only the procedure but also cover non payments from denied insurance claims or those without coverage that just don’t pay.