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

US Healthcare makes $4.3trillion a year. About 30% goes to Health Insurance. More than goes to doctors (~9-10%) and about the same that goes to hospitals.

That’s about $1.3 T in money that contributes nothing to care. But that money also powers multiple SP500 companies (United & CVS are top 10 companies in revenue in the US). , provides hundreds thousands jobs & contributes millions to Congress. And it runs about 50% of Medicare, which is biggest expense in US budget. So Congress won’t dare hurt it w/ universal healthcare coverage or cutting health insurance bottom lines.