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

Both higher labor costs and higher equipment / medicine costs. Labor costs are hard to avoid as there’s zero political will to pay doctors and nurses less. Equipment and medicine costs are higher as the population has higher income and we’ve been generous to encourage those industries to be in the US.

We also have inefficiencies.. use the ER for whatever ills you.