High Costs of Care

U.S. healthcare underperforms in most verticals. 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. These patients have acknowledged the difficulty in paying medical bills and other expenditures.

According to U.S. healthcare experts, the cost of new technologies and prescription drugs has risen. The availability of more expensive, state-of-the-art medical technologies and prescription drugs generate demand for more intense, costly services even if they are not necessarily cost-effective. The increased costs of medical services occur due to the rise of chronic diseases, including obesity. Nationally, chronic illnesses contribute huge proportions to healthcare costs, particularly during end-of-life care. For example, patients with chronic illness spend 32% of total Medicare spending, much of it going toward physician and hospital fees associated with repeated hospitalizations.

The National Academy of Sciences found that the U.S. has a higher rate of chronic illness and a lower overall life expectancy than other high-income nations. Therefore, medical experts focus more on preventative care to improve health and reduce the financial burdens associated with chronic disease.

High administrative costs are a contributing factor to the inflated costs of U.S. healthcare. The government outsources some of its administrative needs to private firms. The aim is to improve administrative efficiency and provide healthcare quality to the citizens.

Lack of Insurance Coverage
The majority of U.S. citizens have health insurance; however, the premiums are rising, and the quality of the insurance policies is falling. In addition, average annual premiums for family coverage have increased, outpacing inflation and workers' earnings.

The lack of health insurance coverage has severe consequences for the U.S. economy. The Center for American Progress estimated that the lack of health insurance in the U.S. costs society between $124 billion and $248 billion per year. In addition, shortened lifespans and the loss of productivity are observed due to the reduced health of the uninsured.

Health insurance coverage is uneven; minorities and deprived families lack insurance coverage. As a result, they face more health hardships than insured Americans. Moreover, the uninsured may not seek medical care due to high costs and avoid regular health screenings. Hence, they are also likely to access preventive health services as well.

The United States Census Bureau annually reports that around 27.5 million lower-income workers did not have health insurance. Lack of health insurance is associated with increased mortality, ranging from 30-90 thousand deaths per year. The number of people without health insurance coverage in the United States is one of the primary concerns raised by advocates of health care reforms and policymakers.