Why are US Healthcare Costs so High? What can Each or us Do to Reduce the Cost?

by Joseph C. Maroon, MD, FACS

From a recent survey, 50% of U.S. adults say it is difficult to afford health care costs, and 25% say they or a family member in their household had problems paying for health care in the past 12 months. Younger adults, those with lower incomes, adults in fair or poor health, and the uninsured are particularly likely to report problems affording health care in the past year. In addition, 25% of adults say that in the past 12 months they have skipped or postponed getting the healthcare they needed because of the cost.

One reason cited for the high cost is that our system provides Americans with the most advanced technologies and best health outcomes compared to the rest of the world. Unfortunately, this is not completely true. The US ranks last in overall health system performance, despite spending the most on healthcare. In 2022, the U.S. spent approximately $12,742 per person on healthcare. This figure is the highest among similar countries, and despite this high spending, healthcare utilization rates in the U.S. do not differ significantly from those in other similar wealthy countries. Factors like lower life expectancy, higher rates of avoidable deaths, and challenges with access and equity mean for many people adequate healthcare is not being provided. 

So, why are US healthcare costs so high?  Answering this question is complicated but in a large part it is due to two major factors. First, going back to the rules of economics, currently in the US, the more services that are provided by a healthcare system, the more profit they made.  This is true for both profit and non-profit organizations. The second major cost driver is the loss of healthcare provider competition in many areas (mostly rural). This allows local healthcare monopolies that can dictate what every price for services they want.   

The United States is the only developed country without some form of universal healthcare coverage. This means that, unlike the US, most developed countries have systems in place to ensure that all residents have access to necessary medical care, often through government-funded or mandatory insurance programs. Although this topic is controversial, the fact is the government would have the ability to control most healthcare costs. This could eliminate or reduce the extreme profit some health systems make and reduce cost to the public. 

What can I do to Reduce Healthcare Costs?

In the US, less than 3% of total healthcare spending is allocated to preventive care.  This branch of medicine focuses on preventing diseases and promoting health before disease occurs. Despite this small percentage, it's estimated that 75% of ongoing healthcare costs are related to preventable conditions like obesity, type 2 diabetes and tobacco use. Shifting priorities to prevent disease has been and will continue to be the best way to reduce costs and maintain a higher quality and quantity of life.  Below is a list of some better choices you can make that can make a huge for your future health. 

Make better health choices – avoid sick care – Lower stress, lose weight, don’t smoke or use avoid excessive alcohol use a seat belt slow down, eat health and exercise regularly 

• See you PCP annually – Participant in disease screening – Skin exam, breast prostate exam, etc

• Report symptom changes early, report all adverse drug effects

• Take medications as prescribed

• Minimize fall risk

• Use a Health Savings Account (HSA) to have money for co-pays that will not be taxed

• Consider Medical Advantage – But realize there are preauthorization to meds and tests

• You also need to use In-Network Health Care Providers

• Don’t neglect dental and vision care

• Use generic Medication if possible

  
  

CLINICAL DISCLAIMER:

Clinical information is provided for educational purposes and not as a medical or professional service. Person(s) who are not medical professionals should have clinical information reviewed and interpreted or applied only by the appropriate health professional(s).