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High Cost of Healthcare in the United States


In the United States, medical services are provided by a wide range of institutions, with the vast majority of these facilities being privately owned and managed. Furthermore, in the United States, profit margins for for-profit municipal hospitals are 58 percent, compared to 21 percent for nonprofit hospitals and 21 percent for federally administered hospitals. A recent World Health Organization study found that the average cost of health care per person in 2014 was $9,403. This spending, however, implies a 17 percent increase in the country’s gross domestic product’s healthcare component. In contrast, health insurance is provided through public health insurance and commercial health plans such as Medicaid and Medicare. Unlike many other industrialized countries, the United States does not have a universal health care system. Despite the United States’ ability to provide high-quality health care to its citizens, the country’s continuing rise in healthcare costs is cause for concern (Bush, 2018). Due to a number of flaws, the Institute of Medicine believes that the United States healthcare system needs to be significantly improved.

Americans spend a lot of money on health care and get very little in return when compared to other countries. The United States is ranked 68th out of 133 states in terms of health and well-being, according to the 2015 case. Furthermore, the United States squandered approximately $750 billion in 2009, accounting for 30% of the country’s total healthcare expenditure. Furthermore, approximately 75,000 people died in 2005 as a result of inefficiencies in the healthcare system. As a result, this article aims to examine rising healthcare costs in the United States, their causes and effects, and compare the United States to other countries. Despite spending more on health care than any other country, the United States continues to lag behind on a number of significant healthcare breakthroughs. In 2014, the United States ranked 42 out of 223 nations in terms of life expectancy. On the other hand, Monaco was the first to emerge, with a life expectancy of 89.57 years. Chad, on the other hand, has the world’s lowest life expectancy at 49.44 years, making it the poorest country.

The United States ranks 60th out of 180 countries in terms of maternal mortality, with a rate of 18.5 per 100,000 live births, whereas Canada has a rate of 8.2. One reason for the surge in healthcare costs is that hospital fees in the United States differ from those in other countries. People are aware that different hospitals provide the same health services but charge different costs for them. As a consequence of this expanding trend, healthcare expenses vary from country to country. Remember that treating cardiac problems in some of the most expensive counties, such as Nevada, New Jersey, and California, may cost up to $75,000 or more. However, in states such as Maryland and Virginia, the cost of treating heart failure does not exceed $15,000 per year. Despite the wide range of hospital fees, no satisfactory explanation for the disparities in costs has yet been discovered (Shrank et al., 2021).

In response to rising healthcare costs in the United States, the medical tourism industry is quickly developing. In other words, receiving treatment in a foreign country will be less difficult than in the United States. In principle, each company should be aware of the costs associated with its operations. On the other hand, hospitals are often unaware of their own financial outlays. If you ask your doctor or receptionist about different hospital fees, for example, they may be unable to respond. Healthcare costs in the United States may grow as a consequence of a lack of knowledge of hospital charges. It’s also worth remembering that hospitals account for 30% of total healthcare expenditure in the United States. Increasing pharmaceutical prices in the United States are another factor contributing to the country’s rising healthcare expense. For the last 15 years, cancer treatment costs have climbed by more than 10% each year, a massive increase.

Most cancer patients have gone bankrupt as a consequence of rising cancer treatment expenses. Similarly, 20% of cancer patients struggle to manage their finances in order to acquire cancer drugs. In 2012, for example, the average cost of 11 of the 12 FDA-approved drugs was more than $100,000 per year. Hepatitis C affects almost three million people in the United States, and the drugs required to diagnose the disease cost $1,125 each pill. In other words, a 24-week rehabilitation program would cost more than $189,000, or about $189,000. There has been much debate and discussion regarding why prescription drug expenses in the United States are so high (Probasco, 2022)). In contrast to other countries, the expected cost of prescription pharmaceuticals per person in the United States is $883, which is about double the cost in other countries. Consider that Canada spends $0.70 for every dollar spent on health care in the United States. Customers in Denmark pay $0.35 per unit, whereas customers in the UK pay $0.40 per unit. Because of rapidly escalating healthcare costs, no healthcare system can function properly for all stakeholders.

The creation of a government structure capable of negotiating prices with pharmaceutical companies is the reason why some countries have acceptable drug pricing. The multiple insurance companies complicate health care in the United States, making proper bargaining harder. According to one estimate, the United States might save up to $15 billion a year in price negotiations since most countries spend less than half of what the United States spends on drugs because each country has just one drug buyer. Despite the fact that the cost of patient satisfaction has grown in recent years, healthcare spending in the United States has climbed (Lyford & Lash, 2019). Patient satisfaction is essential to health care professionals, insurance companies, and healthcare facilities. According to the common view in the United States, this phase is a decisive factor in the quality of patient therapy. On the other hand, patient satisfaction surveys may be used to assess the overall quality of care.

Measures to boost patient satisfaction, on the other hand, have been demonstrated to increase medical testing, hospital visits, and the prescription of harmful medications, all of which lead to an increase in mortality. Patients often express their dissatisfaction by seeking the opinion of a specialist, and they express their delight when doctors meet their expectations. Furthermore, the desires of patients in the hospital impact how doctors respond and prescribe drugs for their patients. As a result, research has shown a significant relationship between patient satisfaction and the cost of treatment. Doctors are often called upon to treat patients who have higher expectations at the time of their appointment, even if they do not have access to what is best for them. In the United States, rising healthcare spending has a variety of consequences, including increased taxes. Consider the following example: If revenues cover public health expenses, the marginal tax rate for high-income earners will reach 70% by 2060.

Increased healthcare spending in the United States has also resulted in fewer jobs. Most large firms are no longer hiring new employees due to rising labor costs and the high cost of healthcare. Furthermore, rising healthcare costs in the United States have reduced citizens’ quality of life. The health sector got around 5% of the increase in per capita revenue, with the other 95% going to other programs. However, in the 1980s, the healthcare industry contributed for about 25% of total sales growth. However, health care absorbed more than 90% of the country’s wealth between 2000 and 2009.

Comparison to Healthcare in the United Kingdom

The National Health Service (also known as the National Health Service in the United Kingdom) was established between 1911 and 1913 to provide free healthcare to residents (Coulter et al., 2019). Furthermore, the UK government founded the National Health Service, which is in charge of overseeing and regulating the country’s healthcare system. As a result of this act, the government now has the ability to use DPR funds to recruit, provide, and support health staff. Unlike the United States, which has a high number of healthcare providers, the United Kingdom provides a comprehensive variety of healthcare services. The National Health Service, for example, offers free health insurance to British people, but no such program exists in the United States.

Furthermore, although the healthcare system in the United States is a combination of government and private enterprises, the healthcare system in the United Kingdom is wholly controlled by the government, and everyone benefits from a public service. Although healthcare in the United States is relatively expensive, people in the United Kingdom may be able to get comparable treatments for free.


Health care is an essential part of everyone’s life, not only in the United States but in every country on the planet. Since the article deals with one of the most severe health issues in the United States, the steady rise in healthcare expenses has been a source of substantial dispute for a long time. To avert future consequences, the US government should consider implementing a universal health care program that would assist citizens in overcoming the many barriers that prevent them from obtaining medical assistance. The United States, like the United Kingdom, should consider providing free health care to its citizens. However, I urge that the Biden administration use the National Health Council to assess measures such as prescription pharmaceutical pricing. Efforts to evaluate these pharmaceutical pricing limitations would benefit not just the vast majority of Americans suffering from a range of ailments but would also contribute to lowering the country’s expensive healthcare costs.


Bush, M. (2018). Addressing the root cause: rising health care costs and social determinants of health. North Carolina Medical Journal79(1), 26-29.

Coulter, I., Herman, P., Ryan, G., Hilton, L., Hays, R. D., & Members of CERC Team. (2019). The challenge of determining appropriate Care in the era of patient-centered care and rising health care costs. Journal of health services research & policy24(3), 201-206.

Lyford, S., & Lash, T. A. (2019). America’s Healthcare Cost Crisis. Generations, 43(4), 7-12. 2#Refs

Probasco, Jim. (2022) “Why Do Healthcare Costs Keep Rising?” Investopedia, ,

Shrank, William H, et al. (2021) “Health Costs and Financing: Challenges and Strategies for a New Administration | Health Affairs Journal.” Health Affairs


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