Navigating the Rising Costs of American Healthcare
In 2023, the US healthcare industry rose to $4.867 trillion, or about $14,570 per person. The factors responsible are the ending of pandemic-specific funding, a growth in private health insurance enrollment, and increased demand due to the tacked-on premiums for higher hospital care expenditures. Also, medication primarily because of diabetes and obesity treatments shows huge growth. Over the past decade, premiums for employer-provided insurance have increased significantly, further adding to the financial pains surrounding healthcare for Americans. Labor shortages and higher wages have also increased costs in hospitals and doctor's offices. As a result, Americans spend a larger share of their income on healthcare nowadays.
The U.S. healthcare system is unique, unlike any other. That is because of its loose regulation and profit-driven system. Unlike other wealthy countries with centralized systems, the one in America has grown from unique historical circumstances, such as when employers granted health benefits during World War II. Along with that, while programs like Medicare, Medicaid, and the Affordable Care Act have increased coverage, they have not eliminated many inefficiencies and complaints that consumers have. Insurers often overbill the government and limit patient care to maximize profits, creating more frustration.
They also use tactics like prior authorization, making care complicated. The recent incident with the UnitedHealthcare CEO amplified the ongoing discussion of healthcare policies and their impact, brought about by the industry on Americans. Democratic Senator Chris Murphy lambasted the healthcare industry for its lack of care toward patients and urged lawmakers to listen to the "visceral anger" of Americans after the incident. Senators Bernie Sanders and Elizabeth Warren joined Murphy in calling for health care reform. To realize these, it will call for massive systemic reforms. By embracing some of these changes, America could gradually become more patient-centered, in turn transforming our healthcare into a system that balances out costs, access, and quality.