High Health Cost in U.S.A Research Paper

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The cost of health care in the United States of America (U.S.A.) has escalated recently. It is estimated that the health care cost in the United States of America account for 16.6% of its Gross Domestic Product (GDP). The U.S.A. health care cost is perceived to be the highest health care cost among the developed nations.

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In the recent decade, it has been noted that the rate of healthcare expenditure in United States of America has increased more than the national income as well as inflation. Despite the high healthcare cost in United States of America, it is believed that United States of America is characterized by the greatest discrimination, inequality, worst access to health care as well as poorest health care delivery.

The U.S.A. should implement appropriate mechanism to leverage its high health care cost. By 2008, the U.S.A. was spending about $7,800 per person annually as health care cost. Its health care spending was $2.4 trillion by then and was forecasted to escalate to $4.3 trillion by 2017 if appropriate strategies are not adapted. This represents a 19.7% of the U.S.A GDP.

When health care cost escalate more than inflation and people’s income as witnessed in the United States of America, it becomes very difficult for residents to receive deductibles, premiums as well as copayments. High health care costs makes it very tricky for employers to offer their employees medical insurance covers, while at the same time being in a position to remain competitive especially at the current competitive market dynamic.

Similarly, high health care cost as the one reflected in United States of America poses a great challenge to governments. Consequently, any government that mirror such a high health care cost faces a lot of problem to try and balance on how to cover its employees and at the same time pay for health care safety net plans for the elderly, those that earn low income as well as children (Mass-Care par. 4).

The high health care cost in United States of America is caused by American commercial health care system. The United States of America treats its health care like commodity that is purchased by the government, individuals as well as businesses.

Surprisingly, instead of the American health care systems being tailored in a manner to assists the Americans, it is costumed in a way to maximize profits at the expense of the Americans. The United States of America insurance companies, drug manufactures as well as the health care providers are motivated by profits. The monopoly of the single payer Health Care System makes health care coverage in United States of America to be offered as a public good to all.

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In California for example, over 6.4 million American have no health insurance. This number is expected to increase very soon if United States of America does not institute appropriate strategies to curtail the situation. The cost of physicians in United States of America is very high. A report given by Price Water Coopers in 2005 revealed that 86 percent of every $ 1 paid in health insurance premium goes to hospitals, doctors, prescription drugs as well as the outpatient care.

In United Sates of America, in every $ 1 that is spent on health insurance premiums, 24 percent go to physician services. It was discovered that health cost of physicians in United States of America in 2005 increased by a rate of 7.8%. This rate was two times higher than the rate of increase of consumer price index that year which was 3.2 percent. The cost of physician was 1.9 percentage points of the 8.8 percent increase in health insurance premiums in 2005 (California Associations of Health Plans 1).

Some of the factors that trigger high physician charges are Medicare and Medi-Cal reimbursements rates. Research on health care cost in various nations indicates that low Medicare and Medi-Cal reimbursements rates escalate health care cost because physicians opt to get their lost income by charging their private patients higher charges and also they recover the foregone income by performing more services.

Physician salaries in United States of America are very high. Physician in U.S.A. earn three times the salaries that physician receive in other developed nations get. For instance Physician is U.S.A receives about $ 300,000 yearly, while doctors in United Kingdom get about $ 100,000 annually.

The high costs that are associated with litigation and defense medicine in U.S.A also increases the health care cost in U.S.A. These costs accounts for approximately 10 percent of the total cost of physician services. The high costs of defense and litigation occurs because physicians prescribe more tests and other expensive procedures to avoid lawsuits.

The high number of aging population in United States of America makes the United States of America to use a lot of money on its health care since this group is vulnerable to chronic diseases. Similarly, the high cost in health care in United States of America can be linked to increased investment in the development of medical devices that help to prolong life (California Associations of Health Plans 3).

The United States of America is in a dire need to address its ever rising health care cost in order to make sure that every American is in position to access equal and affordable health care service. The sure way to ensure low cost of health care in United States of American is by the federal government enacting appropriated legislations to address high health care cost in U.S.A.

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The federal government should enact legislation that will leverage the salaries paid to United States of America physicians to reflect those salaries paid to doctors in other developed nations .In additional, appropriate legislation that support uniform billing and fair prescriptions should be adapted. Through these legislations, the United States of America will be in a position to cut down its high health care cost (Mass-Care par 5).

Works Cited

California Associations of Health Plans. “Medical Costs Growing Faster Than the Economy.” 18 Feb. 2009. Web.

Mass-Care. “Health Care Cost”.28. Feb 2011. Web.28 Nov. 2011

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IvyPanda. 2018. "High Health Cost in U.S.A." June 12, 2018. https://ivypanda.com/essays/high-health-cost-in-u-s-a/.

1. IvyPanda. "High Health Cost in U.S.A." June 12, 2018. https://ivypanda.com/essays/high-health-cost-in-u-s-a/.


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