8 Truths and Myths of Rising Healthcare Costs

Rising Healthcare Costs
Source of Infographic: Medical Billing & Coding

Why Does Healthcare Cost So Much?

When you have a discussion with people about why healthcare in the United States is so expensive, many people cite how many people who smoke, or how many people are overweight, or even malpractice lawsuits that are clogging up the system. Did you know that all of these assumptions are incorrect? If health issues aren’t what is behind the skyrocketing costs of healthcare, then what is the truth behind the abnormally high costs of getting the healthcare we each need?

American Healthcare Is a Free Market Economy

The reason why healthcare costs are so high is because it operates on the free market principle. Healthcare is something that everyone needs, they must have access to it, and if they choose not to access, there’s a chance they could die. Given that, you’re going to see more absurd costs, like:

• $1,500 for a set of stitches,
• $20,000 for the treatment of a kidney stone without surgery, or
• $85,000 for the administration of anti-venom from a snake bite.

Americans like talking about having a limited government. Because there are limits to what the government does, Americans have less regulation of their healthcare than other industrialized nations. This means any doctor can charge almost any rate they want to provide services, especially to uninsured patients. Medication in the U.S. costs twice what it does in other industrialized nations. How can this be changed?

Most Administrative Costs Are Because of Insurance Compensation

Nearly 85% of today’s administrative costs are due to the fact that insurance billing system that is in place in the United States is extraordinarily complicated. Considering that over 20% of the extra costs Americans pay in healthcare is due to administration issues alone, it means that much of the overcharging problem the average American faces can be changed if the structure of healthcare insurance is changed.

American Doctors Make 5 Times More Than Their Patients

In most industrialized nations, the doctors providing healthcare make about 3 times the amount their patients do for a yearly salary. In contrast, American doctors make five times the amount of their patients and sometimes much more. If the salaries of doctors was reduced to the world standard of a multiplier of 3, there would be enough money saved to pay for 9 months of the healthcare reform bill every year.

It’s Time To Fix the Broken System

A free market system for healthcare just doesn’t work for the average citizen. It focuses on need and greed, padding the pockets of doctors who must then pay for food stamps and other needed social services for families who no longer have any money. It’s time to call for greater responsibility in the healthcare industry, institute fair measures that can help everyone, so that people can truly have the care they need.

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