Why does the United States spend so much more on healthcare than other nations?
The amount of resources a country allocates for healthcare varies as each country has its own political, economic, and social attributes that help determine how much it will spend. Generally, wealthier countries — such as the United States — will spend more on healthcare than countries that are less affluent.
In the UK, the public health system can be accessed by all permanent residents, is mostly free at the point of use and is almost entirely paid for through taxation. Americans are far more likely to rely on private insurance to fund their healthcare since accessing public healthcare is dependent on your income.
Health spending per person in the U.S. was $11,945 in 2020, which was over $4,000 more expensive than any other high-income nation. The average amount spent on health per person in comparable countries ($5,736) is roughly half that of the U.S.
The government also has a hand on the ambulance services, nursing, community, health education and the quality. While, statistically, England is faring better than the US regarding healthcare systems and policies, there is still some major issues that stem from this National Health Service.
At a fundamental level, greater financial compensation also provides individuals and their families the potential for a better quality of life, while greater autonomy spurs innovation. This is why the United States is routinely listed as one of the best countries in the world to practice medicine.
Health Expenditure in the U.S.
The United States is the highest spending country worldwide when it comes to health care.
Everyone has to pay for it because everyone has to pay taxes. Universal healthcare is tax-payer funded, which means increasing healthcare will increase taxes.
| Country | Ranking |
|---|---|
| Norway | 7 |
| France | 9 |
| Canada | 10 |
| United States | 11 |
Efficiency of Healthcare Service
Although the healthcare service in the US is of good quality, its efficiency is low compared to other European countries. Similarly, the insurance system and the healthcare service within the UK are the most efficient. This efficiency is also closely related to the structure of the NHS.
Cons of the UK Healthcare System
The NHS is known for long waiting times in both emergency rooms and offices with scheduled appointments. With recent stresses on the NHS – including reduced funding and too few staff – these waits are longer than ever. There are further waits to get referrals to specialists.
Why is UK healthcare free?
Health coverage in England has been universal since the creation of the National Health Service (NHS) in 1948. The NHS was set up under the National Health Service Act of 1946, based on the recommendations of a report to Parliament by Sir William Beveridge in 1942.
Its government-sponsored healthcare is dependent on need, not your ability to pay. Whether you're unemployed or in a high income bracket, everyone is entitled to healthcare at the point of use without cost.
Americans live shorter lives and suffer more health problems than peers in other high-income countries. Americans believe they are the healthiest in the world… …but rank 34th in life expectancy.
High cost is the primary reason that prevents Americans from accessing health care services. Americans with below-average incomes are much more affected, since visiting a physician when sick, getting a recommended test, or follow-up care has become unaffordable.
Administrative Efficiency: The U.S. ranks last in administrative efficiency because of how much time providers and patients spend dealing with paperwork, duplicative medical testing, and insurance disputes.
The United States spends significantly more on healthcare compared to other nations, but we don't have better healthcare outcomes.
The U.S. ranks last overall on the health care outcomes domain (Exhibit 1). On nine of the 10 component measures, U.S. performance is lowest among the countries (Appendix 8), including having the highest infant mortality rate (5.7 deaths per 1,000 live births) and lowest life expectancy at age 60 (23.1 years).
The United States healthcare system is complex and most costs are market driven. High, unregulated prescription drug costs and healthcare providers' salaries rank higher than in other western nations, and hospital care accounts for 31% of the nation's healthcare costs.
If you don't have health insurance, you're at much greater risk of accumulating medical bills that you may not be able to pay. In a worst-case scenario, you could be sued and have your wages garnished. You might even be forced into bankruptcy.
Most agree that if we had universal healthcare in America, we could save lives. A study from Harvard researchers states that not having healthcare causes around 44,789 deaths per year. 44,789 deaths per year means that there is a 40% increased risk of death for people who are uninsured.
Which country is No 1 in world?
The overall ranking of Best Countries measure global performance on a variety of metrics. Switzerland is the best country in the world for 2022.
- Countries with the best healthcare systems in the world in 2023. The following 10 countries have been seen as providing the best healthcare for their population. ...
- Singapore. ...
- Australia. ...
- Switzerland. ...
- The Netherlands.
America's innovative health care sector is by far the largest in the world, and including biotechnology pioneers Amgen, Genentech, and Biogen, along with medical device leaders Johnson & Johnson, Medtronic, and Boston Scientific.
Another commonality is that healthcare in Europe (regardless of system) is largely funded by tax dollars collected from employers and the public. In many cases, this is through a simple payroll tax, similar to what Senator Sanders has proposed in his Medicare-For-All plan and how we already fund Medicare today.
European healthcare universal systems
Having different structures of interactions between insurers, providers, and patients, all European healthcare systems aim to provide care to everyone, on the grounds of free access, equality and equity, and fairness: no matter how much you earn, you're getting a basic package.
- Singapore.
- Hong Kong.
- Taiwan.
- South Korea.
- Israel.
- Ireland.
- Australia.
- New Zealand.
The U.S. ranks last overall on the health care outcomes domain (Exhibit 1). On nine of the 10 component measures, U.S. performance is lowest among the countries (Appendix 8), including having the highest infant mortality rate (5.7 deaths per 1,000 live births) and lowest life expectancy at age 60 (23.1 years).
Taxes are lower. Food costs less. And salaries are lower. Foreign doctors often make a sixth of the salary of their U.S. counterparts.
What is one cited reason why healthcare expenditures are so high in the United States? The uninsured often delay care, but preventive treatment would have been less expensive. the demand for health care exceeds the supply of health care at the prices imposed by the government.
European healthcare universal systems
Having different structures of interactions between insurers, providers, and patients, all European healthcare systems aim to provide care to everyone, on the grounds of free access, equality and equity, and fairness: no matter how much you earn, you're getting a basic package.
What makes up the largest portion of US health care expenditures?
Spending for hospital care represented the largest share of personal health care expenditures.
The main driver of relatively high health spending in the U.S. is the cost of inpatient and outpatient care. Health costs in the U.S. were $5,110 more per person than costs in similarly large and wealthy countries.
A Journal of the American Medical Association (JAMA) study found five factors that affect the cost of healthcare: a growing population, aging seniors, disease prevalence or incidence, medical service utilization, and service price and intensity.
