Introduction

Most developed countries have higher life expectancy at birth and lower infant mortality rates than the United States, yet the US spends far more on healthcare than any other country. As a nation, we throw unprecedented amounts of money into our healthcare system — yet the outcomes fall short of expectations. So why is the US lagging behind in the health outcomes despite having some of the most expensive healthcare in the world?

Healthcare Costs in the US

According to data published by the Kaiser Family Foundation, the US spent 17.8% of its gross domestic product (GDP) on healthcare in 2018. This is more than twice the OECD average of 8.8%. But where does all this money go? Health insurance premiums and out-of-pocket expenses represent a large portion of the spending. Americans pay significantly more for their healthcare, with average insurance premiums for families in the US being much higher than other developed countries. Furthermore, the US has the highest share of out-of-pocket costs among OECD countries too.

Quality over Quantity

In spite of the high cost of healthcare in the US, it hasn’t translated into the desired health outcomes. The US ranks 28th in life expectancy at birth, and 25th in infant mortality rate. The unequal access and high costs mean that many Americans are unable to afford essential health services or medications. This gap in healthcare provision leads to a lower life expectancy and higher infant mortality rates, despite the expenditure.

Conclusion

The US spends unprecedented amounts of money on its healthcare system, but health outcomes don’t match the spending. Quality of care is sacrificed due to pricey insurance premiums and out-of-pocket costs, leaving many people without essential health services and medications, resulting in inferior health outcomes in comparison to other countries.

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