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
One reason is the high cost of medical technology and research. Developing new drugs, medical devices, and procedures is expensive, and those costs are passed on to patients. Similarly, the high cost of medical education and training. Doctors, nurses, and other healthcare professionals spend a ton of time in school, which is expensive. As a result, they need to charge higher fees to cover their costs.
The administrative costs of healthcare are also very high. The American healthcare system requires a lot of paperwork and bureaucracy to keep it running. All of this administrative work adds to the total cost.
Last but not least, the profit motive is a very significant driver of healthcare costs in America. At the end of the day, healthcare here is a business, and many companies in the healthcare industry are motivated by profit. This usually leads to higher costs for patients, as companies seek to maximize their profits.
These factors are made worse by the fact that Americans have to take on much more of this cost relative to citizens of other countries like Canada or the UK where the government helps pay.
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