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

Price is always based on supply and demand.

I’m surprised no one ( that i read) has mentioned the absurdly low amount of medical school students that the American medical association allows, causing a great shortage in the supply of doctors. Couple this with the heavier than norm regulations on what non doctor medical professionals can do. I have a friend who has been a pharmacist in both the uk and in the usa, in the uk pharmacists can do msny things that in the usa u must see a doctor for. Also, the education requirements to be a doctor in usa are greater than all eu countries. There has been a concerted effort by lobbyists and professional organizations to restrict supply in order to drive up price.