eli5: How come health care cost so much more in America vs. other countries?

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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?

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41 Answers

Anonymous 0 Comments

There are many complicated reasons as other answers have covered. But to provide a simple answer to the simplest part of your question: do doctors make more money in America?

Yes. LOTS AND LOTS more money.

Doctors here make a minimum of 100k, and many of them make several hundred thousand per year. I know someone who got an offer for 500k and another for 650k/year.

That isn’t unusual. You can check the salaries of doctors at public hospitals and those affiliated with public universities. Many states are legally required to publish their salaries. At each hospital there are dozens of doctors making 500-750k/year. Private hospitals don’t have to disclose this information but I can’t imagine that Stanford, Penn, Mayo, Cleveland Clinic, etc are paying their people less. They are likely paying more

Of course these salaries are at the best hospitals in the country in very expensive cities. Doctors in rural hospitals make less, but the gap is likely smaller than you imagine and for some specialties rural hospitals actually pay more. My friend who had offers for 500k and 650k was recruited by a hospital in Montana who said they would start negotiations at 700k. They have a hard time recruiting specialists to work in the boonies, so they try to attract them with eye watering salaries.

The system is crazy. It is most definitely not set up to provide good care at low prices.

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