How Can America Make Healthcare More Affordable?

The quality and cost of healthcare in the United States is perpetually a pressing challenge. The country’s health care cost is projected to continue to rise in the next few years. In addition to that, the varying medical services costs in the US also remains as a foregoing problem.

Monopolistic pricing of big hospitals has been one of the top reasons why healthcare in America is awfully expensive. Also, many people have the misconception that only popular private hospitals can deliver better service quality. Because of this, they believe that the private hospitals are worth the steep medical costs.

According to an article from the Peter G. Peterson Foundation, the USA has spent an average of $11,110 per individual on healthcare in 2019 alone. On the other hand, well-developed countries that are members of OECD (Organization for Economic Co-operation and Development) spend an average of only $5,500 per individual.

This comparison heavily insinuates that the amount of resources the US spends on healthcare is disproportionate. Given that the healthcare cost in the United States is outrageously expensive, here are some of the most practical ideas to make it more affordable.1. Reduce administrative costs on healthcare facilities.

Admin costs imposed by hospitals and clinics are cited as one of the main contributors to excessive healthcare expenses. Healthcare facilities in the USA have multiple systems that without doubt lead to more waste. Hospitals and clinics should be mandated to cut back admin costs for their services.

This will not only help to reduce patients’ total medical bills, but it will also allow them to allocate those excess costs to medicines and other after-care expenses.2. Promote virtual healthcare. Healthcare providers and patients must take advantage of today’s innovative technology. Although some medical professionals have been using telemedicine with their patients already, it is still not as widely used in the United States.

Virtual checkups are relatively cheaper than walk-in consultations. Additionally, it is also more convenient for patients living in remote places or those who do not have the time to visit their physician’s clinic. According to the American Telemedicine Association, health insurance companies such as Medicaid and Medicare also cover telehealth services for all policy holders.3.

1. Get rid of unnecessary lab tests for patients.
2. Laboratory tests offered by healthcare facilities in the US are not cheap.
3. A common reason why patients’ total medical bills are expensive is due to multiple lab tests required by healthcare providers.
4. Additionally, many patients go through numerous lab tests which are unnecessary.

As a solution, doctors must not require their patients to get unnecessary tests during checkups or admission. Instead, they must require patients to get the tests if they are necessary for their clinical evaluation.4. Regulate the prices of drugs and allow Medicare to negotiate prices.

One of the biggest challenges in the American healthcare sector is the rising costs of drugs. Expensive drugs are the biggest reason for overspending in America. Unlike in America, medicine prices in Europe are regulated by the government based on medication and clinical benefit. Medicare, an insurer that pays a huge chunk of the USA’s drug costs, should also be allowed to negotiate prices with drug manufacturers.

This will help to reduce the cost of drugs.5. People should be allowed to buy health insurance from any company. All American citizens should be allowed to shop around for health insurance providers. Doing this will create a more competitive environment among insurance companies across the US.

• As a result, insurance premiums will become cheaper and insurers will offer more added benefits to their policies.6.
• Require clinics and hospitals to post prices for all services they offer.
• As mentioned earlier, the wide variation of care costs in the US has been a great factor in the country’s expensive healthcare.

By posting the prices for their care services, healthcare will become more accessible in the United States. Transparency on care services pricing is essential as it compels healthcare providers to be more reasonable with their prices.7. Encourage personal responsibility and a healthier lifestyle for all individuals.

To cut back on the country’s upscale spending on healthcare, citizens should be encouraged to lead a healthier lifestyle. If individuals in the US become healthier, it will result in the reduction of preventable diseases such as heart disease, lung cancer, diabetes, and hypertension. This can be done by encouraging people to change their eating habits, quit smoking, and become more active.

How Expensive Healthcare in The US Affects the Citizens The cost of healthcare in America mainly affects people with insufficient funds for care services. Below are some of the common negative effects of the country’s upscale care cost.

Less Salary and Wage Increase : Companies that provide health insurance for their employees will have fewer abilities to impose salary and wage increases for their manpower. As they bear a higher cost for health insurance, their budget will not be sufficient to support compensation hikes. Increase in the Population of Uninsured Individuals : The ever-increasing healthcare cost of America could lead to an increase of citizens with no health insurance. This probability could affect majority of the people who are poor. Rise in Taxes and Fees : Property taxes, in specific, has the ability to cover for the healthcare expenses of the US. However, this can have adverse effects on property-owners across the country. Lower Care-Quality for the Elderly : Family members may struggle to pay for the healthcare expenses of their loved ones who are elderly or disabled. Nursing homes can also become expensive; thus, they are forced to provide care for them at home without any professional assistance. Lower Care Quality Overall : As nurses and staff are being reduced in healthcare facilities in the US, the quality of healthcare overall can be reduced. The lack of nursing staff could also result in physicians spending less time with their patients. As a result, the rates of medical misdiagnosis is likely to rise. Conclusion: Although there is a huge doubt that the healthcare cost in the US will become more affordable anytime soon, these ideas and suggestions can result to great changes. This way, the quality of care in the country will be not only quality but also very affordable.

Why is affordable healthcare important in United States?

Rising health care costs both contribute to our federal deficit and reduce our ability to spend in other important areas including education, housing and economic development.

What is the biggest challenge facing the US health system?

1. The High Cost of Health Care – The problem: Perhaps the most pressing issue in health care currently is the high cost of care. More than 45% of American adults say it’s difficult to afford health care, according to a survey by the Kaiser Family Foundation, and more than 40% have medical debt.

The cost of health care changes people’s behavior, with many forgoing seeing a doctor when they feel sick or avoiding preventive health visits entirely. A quarter of Americans can’t afford necessary prescriptions and may skip doses or otherwise not take medication as prescribed. Each of these behaviors can lead to serious health issues, increasing the cost of care down the road.

The solution: Cutting the cost of care involves the input and actions of the health care industry, insurers, and state and federal government agencies. Current initiatives focus on a commitment to reducing insurance premiums and instituting comprehensive price caps for service.

Why is America’s healthcare so expensive?

The Increasing Cost of Healthcare Services – Prices are another significant driver of healthcare spending in the United States; the cost of healthcare services typically grow faster than the cost of other goods and services in the economy. In the past 20 years, the Consumer Price Index (CPI) — the average change in prices paid by urban consumers for various goods and services — has grown at an average of 2.4 percent per year while the CPI for medical care has grown at an average rate of 3.4 percent per year. There are many possible reasons for that increase in healthcare prices:

The introduction of new, innovative healthcare technology can lead to better, more expensive procedures and products. The complexity of the U.S. healthcare system can lead to administrative waste in the insurance and provider payment systems. The consolidation of hospitals can lead to a lack of competition or even a monopoly, granting providers the opportunity to increase prices.

More research needs to be done, though, to confirm the reasons that healthcare costs grow so quickly.

Is the Affordable Care Act good for America?

12 Years of Advancing Health Equity for All Americans Since its enactment on March 23, 2010, the Affordable Care Act has led to an historic advancement of health equity in the United States. This landmark law improved the health of all Americans, including women and families, kids, older adults, people with disabilities, LGBTQI+ and communities of color.

Thanks to the ACA, millions more Americans have gained health coverage without limits, and protections are in place for people with preexisting conditions. People have access to essential health benefits, including preventive and rehabilitative care, prescription drugs, wellness visits and contraceptives, mental health and substance use treatment, among many others.

The Biden-Harris Administration is committed to building on the success of the ACA and making health care a right for all Americans. Below is the fact sheet highlighting some of the accomplishments of the ACA: Health of Women and Families

Required plans cover women’s preventive health services, including birth control and counseling, well-woman visits, breast and cervical cancer screenings, prenatal care, interpersonal violence screening and counseling, and HIV screening and STI counseling, with no cost-sharing to the woman.

An estimated 58 million women with private insurance currently benefit from these preventive service provisions, in addition to 37 million children with access to free preventive care.

Allowed states to expand Medicaid eligibility up to 138% of the Federal Poverty Level ($17,774 for an individual; $36,570 for a family of four) and remove categorical requirements that previously prevented many low-income people from being able to enroll in the program.

Medicaid expansion – adopted by 38 states and Washington DC, as of March 2022, has connected people to coverage and improved health outcomes for women of color and families. Created the Pregnancy Assistance Fund (PAF) to improve the health, educational, social, and economic outcomes of expectant and parenting teens, women, fathers, and their families.

The PAF has provided funds to grantees in 32 states and seven tribal organizations, serving nearly 110,000 expectant and parenting young people. Created the Maternal, Infant, and Early Childhood Home Visiting Program (MIECHV), which has appropriated over $4.7 billion in grants to states, territories and tribes to support home visiting services to pregnant people and parents with young children who live in communities that face greater risks and barriers to achieving positive maternal and child health outcomes.

MIECHV (HRSA) provided over 7.1 million home visits between 2012 and 2020, with over 925,000 home visits provided in fiscal year 2020 alone. Since programs started implementing services, Tribal MIECHV (ACF) recipients have provided over 142,500 home visits, including virtual visits during the COVID-19 pandemic, and served over 3,500 caregivers and children during FY 2021.

Provided $11 billion in funding to bolster and expand community health centers: Nearly 1,400 HRSA-funded health centers operate more than 14,000 service delivery sites that provide comprehensive and preventive health care to nearly 29 million people – 1 in 11 nationwide – in every U.S. state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and the Pacific Basin.

Health of Older Adults and People with Disabilities

Extended protection for Americans with disabilities from being discriminated against by health insurance plans on the basis of medical history or pre-existing conditions; and eliminated lifetime dollar caps on essential health benefits. As a result, many more people with disabilities are able to access quality health insurance that meets their needs, and they will no longer lose coverage based on their health status when they need it most. Lowered the share of adults with disabilities under age 65 who were uninsured for a full year by nearly half. Created the Center for Medicare & Medicaid Innovation (CMS Innovation Center) to develop and test new health care payment and service delivery models. This was intended to improve patient care, lower costs, and promote patient-centered practices in Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP). Brought community living options to more people through Medicaid options such as Community First Choice, the Balancing Incentive Program and Money Follows the Person. Provided $50 million to support further development of the Aging and Disability Resource Center (ADRC) Program, which works to assist individuals in critical pathways, defined as times or places where people make important decisions about long-term care. Supported 33 states with grant funding to plan and implement a “No Wrong Door System,” a partnership between the ACL, the Centers for Medicare & Medicaid Services (CMS), and the Veterans Health Administration, to make it easier for consumers to learn about and access Long Term Supports and Services (LTSS). Closed the Part D prescription drug “donut hole” to make drugs more affordable for older adults. Reformed payments in traditional Medicare through payment updates to hospitals, skilled nursing facilities, and certain other providers, partly to account for economy-wide productivity improvements and reduced excessive payments to home health agencies and inpatient rehabilitation facilities. Created the largest value-based purchasing program in the country, the Medicare Shared Savings Program (SSP); there are now 483 SSP Accountable Care Organizations (groups of doctors, hospitals, and other health care providers) that serve over 11 million Medicare beneficiaries, with over 525,000 participating clinicians.

Coverage Gains & Patient Protections

Produced historic gains in health insurance, reducing the number of uninsured Americans by approximately 20 million, and extending Marketplace insurance or Medicaid expansion coverage to more than 31 million people as of early 2021.

This year, the Biden-Harris Administration announced a record-breaking 14.5 million people have signed up for 2022 health care coverage through the Marketplaces during the historic Marketplace Open Enrollment Period (OEP) from November 1, 2021 through January 15, 2022.

Protected more than 133 million people with pre-existing conditions, like cancer, asthma or diabetes, pregnancy, from being denied coverage for their pre-existing condition. Mandated that most insurers cover 10 essential health benefits, including mental health and prescription drugs. It covered young people up to age 26 on their parent’s health plans. Established vaccinations as a routine and expected part of the health care visit and required that people had a right to the full set of vaccinations recommended for them. For example, hepatitis A and hepatitis B vaccination covered without deductible or co-pay. Established the Federal Coordinated Health Care Office (Medicare-Medicaid Coordination Office) which serves people who are dually enrolled in both Medicare and Medicaid, also known as dually eligible individuals or Medicare-Medicaid enrollees, to make sure dually eligible individuals have full access to seamless, high quality health care and to make the system as cost-effective as possible.

Mental Health and Substance Use Support

Established the Substance Abuse and Mental Health Services Administration (SAMHSA) Office of Behavioral Health Equity, which coordinates efforts to reduce disparities in mental and substance use disorders across populations. Extended parity protections to individual health insurance, including qualified health plans offered through exchanges and required coverage of mental and substance use disorder treatment services as a category of Essential Health Benefits, guaranteeing coverage for consumers enrolled in individual and small group market plans. This impacted approximately 30.4 million enrollees in insurance plans and helped reduce stigma while supporting treatment for vulnerable populations. Created the Health Home State Plan Option to provide comprehensive care coordination for individuals with chronic conditions, including mental and substance use disorders. Contributed millions of dollars to the Garrett Lee Smith State and Tribal Program, GLS Campus Suicide Prevention, and Primary Behavioral Health Care Integration grant programs. This successful program has trained more than 143,000 individuals who work in the mental health field or a related profession and more than 300,000 people in communities across the country on suicide prevention and mental health promotion. It has reached approximately 55 million people with mental health awareness messaging.

Health of LGBTQI+ and Communities of Color

Established the Offices of Minority Health within six agencies at HHS: Agency for Healthcare Research and Quality (AHRQ); Centers for Disease Control and Prevention (CDC); Centers for Medicare & Medicaid Services (CMS); Food and Drug Administration (FDA); Health Resources and Services Administration (HRSA); and Substance Abuse and Mental Health Services Administration (SAMHSA). Elevated the NIH National Institute on Minority Health and Health Disparities to lead and coordinate activities that improve the health of racial and ethnic minority populations and reduce health disparities. Prohibited discrimination on the basis of race, color, national origin, age, disability, or sex (including pregnancy, sexual orientation, and gender identity), in covered health programs or activities, including health insurance. Reduced the uninsured rate among LGBTI+ populations by nearly half since 2010. Provided coverage to approximately 4 million Latinos and 3 million Black Americans since 2010 when the ACA was enacted. Strengthened the safety net of HIV care and treatment services to people with HIV served by HRSA’s Ryan White HIV/AIDS Program by helping cities, states, counties, and locally-based community organizations stretch their resources to build a comprehensive system of HIV care. Established the Health Profession Opportunity Grant, a unique training and employment program that enrolled low-income individuals from historically underserved and marginalized communities in high demand health care training programs, thus providing career pathways for low-income individuals to assist families in becoming self-sufficient.

This communication was printed, published, or produced and disseminated at U.S. taxpayer expense.

When was healthcare affordable in the US?

The comprehensive health care reform law enacted in March 2010 (sometimes known as ACA, PPACA, or “Obamacare”). The law has 3 primary goals:

Make affordable health insurance available to more people. The law provides consumers with subsidies (“premium tax credits”) that lower costs for households with incomes between 100% and 400% of the (FPL).

If your income is above 400% FPL, you may still qualify for a premium tax credit. If your income is at or below 150% FPL, you may qualify to enroll in or change Marketplace coverage through a Special Enrollment Period,

Expand the Medicaid program to cover all adults with income below 138% of the FPL. (Not all states have expanded their Medicaid programs.) Support innovative medical care delivery methods designed to lower the costs of health care generally.

What is the healthcare budget for USA?

How much support does the federal government provide for health programs and services? – The federal government provides support for health programs and services both through spending on programs and services and through tax expenditures. Federal spending on domestic and global health programs and services accounted for 29% of net federal outlays in fiscal year (FY) 2023 (taking into account offsetting receipts), or $1.9 trillion out of $6.4 trillion (Figure 1).

1. Specifically, Medicare accounted for 13% of the total, Medicaid and CHIP accounted for 10%, other domestic health spending accounted for 4%, hospital and medical care for veterans was 2%, and global health was 0.1%.
2. By comparison, Social Security accounted for 21% of federal outlays in FY 2023, while defense accounted for 13%.

Mandatory spending comprises the majority (88% or $1.6 trillion) of federal spending on health programs and services. Mandatory spending is not subject to annual appropriations votes by Congress but instead mandated by existing laws. Mandatory health spending includes nearly all Medicare spending, federal spending on Medicaid and CHIP (which are jointly funded by states and the federal government), and the refundable portion of the health insurance premium tax credit for coverage through the ACA Marketplaces, along with other mandatory health spending, which is detailed in Table 1.

1. Medicare alone, which covers 65 million older adults and younger people with long-term disabilities, accounts for half of mandatory spending on federal health programs and services, while Medicaid, which covers 84 million individuals, accounts for another 37% (Figure 2).
2. ACA premium tax credits—which include a refundable portion that counts as outlays and a non-refundable portion that counts as lost revenue—represent a much smaller portion (5% of mandatory outlays).

The remaining 12% of federal health spending ($231 billion) is discretionary spending, which is subject to votes by Congress during the annual appropriations process. Discretionary health spending includes nearly all spending on veterans’ hospital and medical care, estimated to provide services to more than 7 million veteran patients in FY 2022 ; spending on agencies such as the CDC, NIH, FDA, and HRSA; global health spending; and certain other health programs and services (Figure 3, Table 2).

In addition to federal spending on health programs and services, the federal government provides several tax benefits that support health-related activities, known as tax expenditures. These tax provisions are similar to federal spending in that they provide benefits from the federal government to employers, individuals, and other entities.

Tax expenditures are revenue losses to the federal government because they allow for certain exclusions, exemptions, or deductions from income for the purpose of determining the amount of income taxes owed; provide preferential tax rates for certain programs; or reduce tax liability through tax credits.

the tax exemption of employer contributions for medical insurance premiums and medical care: $224.5 billion (not including additional lost revenue from exempting employer contributions from payroll taxes for Social Security and Medicare); the premium tax credit for ACA Marketplace coverage: $14.7 billion (excluding the value of the refundable portion of the tax credit, which is classified as a mandatory outlay); and tax deductions for contributions to Medical Savings Accounts and Health Savings Accounts: $13 billion.

Why is healthcare so expensive in the US vs other countries?

As of 2021, life expectancy in the U.S. is 76.1 years and only 91.4% of the population has health insurance, compared to 99% to 100% of the population in other industrialized countries. The United States healthcare system is complex and most costs are market driven.

What is the number one health threat in America?

Americans’ top public health concerns – When asked about the top threats to public health at the moment, the top three responses were opioids (26%), obesity (21%), and access to guns or firearms (17%). Other responses include cancer, COVID-19, and unsafe roads or driving.

According to the researchers, political affiliation and education impacted these views. Republicans were more concerned about opioids and obesity, while Democrats were more concerned about gun deaths. Respondents with a college degree were also more likely to see obesity as a larger issue than opioids compared to those without one.

In general, most Americans have a “pessimistic view” of public health in the United States, Ipsos writes. Roughly 75% of respondents said they disagreed that either businesses or the government are making their health and well-being a priority. Similarly, only 28% of respondents said they believe the country is prepared to handle another pandemic.

1. Currently, healthcare costs are a major issue for many Americans, with 72% of respondents saying that costs are increasing where they live.
2. When asked about what the government should prioritize for public health, most respondents (50%) said lowering costs for healthcare and prescription drugs.
3. Other answers included reducing gun deaths, researching cures and treatments for major diseases, and ensuring the safety of existing health practices and medications.

Currently, 78% of respondents said they want insurers to cover weight-loss drugs, and 84% said they supported a monthly cap on out-of-pocket insulin costs. “These public health challenges are important, but for the typical American it’s the bite out of their pocketbook that is even more important,” said Cliff Young, president of Ipsos U.S.

What is the US health disadvantage?

U.S. Health Disadvantage: Causes and Potential Solutions People in the United States have poorer health, more illness, and shorter lives than people in other wealthy countries. Americans pay too much for healthcare and lack adequate access to healthcare.

This is called the U.S. health disadvantage. The U.S. health disadvantage has its roots in neighborhoods and communities where the vital conditions that shape health are unmet for some residents. Communities that lack some or all of the vital conditions that shape health are considered “low-opportunity” neighborhoods.

Today’s business leaders can play a meaningful role in the lives of their employees, consumers, and communities. Helping communities meet the vital conditions that all people need to thrive can create opportunities for business. : U.S. Health Disadvantage: Causes and Potential Solutions

What is healthcare like in America?

The cost is enormous –

High cost, not highest quality. Despite spending far more on healthcare than other high-income nations, the US, including life expectancy, preventable hospital admissions, suicide, and, And for all that expense,, Financial burden. High costs combined with high numbers of underinsured or uninsured means many people risk bankruptcy if they develop a serious illness. Prices vary widely, and it’s nearly impossible to compare the quality or cost of your healthcare options — or even to know how big a bill to expect. And even when you ask lots of questions ahead of time and stick with recommended doctors in your health insurance network, you may still wind up getting a surprise bill. My neighbor did after knee surgery: even though the hospital and his surgeon were in his insurance network, the anesthesiologist was not.

Why does the UK spend less on healthcare than the US?

The claim: The NHS costs half as much as the US health system, and cares for the whole population. Reality Check verdict: If you look at every penny spent on health by anyone in the country, then the UK spends about half as much on health as the US does.

• But if you compare the amount spent on the NHS with the amount spent by the US government on public healthcare, the difference is much smaller.
• US President Donald Trump has caused a stir by tweeting his criticisms of the UK’s universal healthcare, describing it as a system that is “going broke and not working”,

NHS England boss Simon Stevens responded that “healthcare for everybody delivered at half the cost of the US healthcare system is something that people in this country are deeply and rightly committed to”. In the UK, healthcare is universal, while in the States there are 28 million people who are not covered by public or private insurance.

1. But does the NHS really cost half as much? If you look at all healthcare spending, including treatment funded privately by individuals, the US spent 17.2% of its GDP on healthcare in 2016, compared with 9.7% in the UK.
2. In pounds per head, that’s £2,892 on healthcare for every person in the UK and £7,617 per person in the US.

So as a proportion of the value of the goods and services produced by all sectors of the economy the UK spends a bit more than half what the US spends, and in spending per head it’s a bit less than half. The difficulty is, when it comes to comparing healthcare in different countries, you’re never exactly comparing like for like.

1. Almost all health systems are a mixture of public and private – it’s the ratio that varies.
2. In the UK, the public health system can be accessed by all permanent residents, is mostly free at the point of use and is almost entirely paid for through taxation.
3. Americans are far more likely to rely on private insurance to fund their healthcare since accessing public healthcare is dependent on your income.

Many European countries, meanwhile, have a social insurance system where insurance contributions are mandatory. This doesn’t fall under general taxation but is not dissimilar from paying National Insurance in the UK and means everyone can access healthcare.

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4. But even if you look only at public money spent on health, the US government’s spending on healthcare still outstrips UK government spending, both in terms of the proportion of its GDP (the way we normally measure the size of a country’s economy) and in terms of how much it spends per head.

Almost half of US health spending still comes from public money including general taxation – although it’s the only country in the G7 to pay publicly for less than 50% of all healthcare that’s provided. What this doesn’t tell you, though, is how effective a healthcare system is, and this seems to be what Mr Stevens was getting at.

Why is US healthcare more expensive than UK?

Key Takeaways –

Healthcare costs in the U.S. are among the highest in the world in all categories.Studies show that the relatively high cost of living is not the primary culprit in high U.S. healthcare costs.Costs may be far higher for the same medication or procedure in the U.S. than in comparable countries.Some factors that may lead to the high U.S. healthcare costs are hospital consolidation, lack of a national healthcare system, and inadequate industry regulation.

Is it cheaper to not have health insurance in the US?

Higher charges for the same services – Without health insurance you may get charged much more for care that would otherwise be covered by your plan. This is because no one—usually the insurance company—will be subsidizing your cost of care. As a result, you may have to pay higher charges for the same services.