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 doctors are paid more.

Malpractice insurance adds cost to the system.

The for profit insurance industry adds cost to the system, in the form of additional layers of bureaucracy and profit-taking.

The bill for services model (as opposed to pay for outcomes) prioritizes procedures and tests which adds cost to the system.

The practice of using urgent care in place of routine care adds cost to the system.