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

It costs a lot in every other place in the world as well, but healthcare in those countries where healthcare is cheap for the citizens aren’t subject to the outrageous pricing the hospital industry in the USA has put on its goods and services.

Back in the day insurance companies wanted discounts on said goods and services, and in response the hospitals just jacked up their prices and agreed to giving discounts on the inflated price. Much in the same way stores increase prices during a sale so the “discounted” price is the original price, or higher.

And every increase in cost since has come from other issues like supply/demand, shortage of staff and increasing cost on pharmaceuticals.

In short:
Healthcare cost in America stems mostly from unadulterated greed.