The Rising Costs of Health Care: Why is it Happening and How Can It be Stopped?

💰Health care spending has doubled over the past two decades, reaching $8.5 trillion in 2019, accounting for 9.8% of global GDP.

🇺🇸The US spends twice as much on health care compared to other large and wealthy countries, yet has lower life expectancy and poorer outcomes.

💊Hospitals and clinical care make up more than half of total health care spending in the US, contributing to higher costs.

🚫Fragmented nature of the US health care system, lack of universal coverage, and the use of narrow networks limit patients' choices and bargaining power.

🏥Excessive testing driven by fear of missing something and the litigious culture in the US also contributes to higher health care costs.

Why does the US spend more on health care than other countries?

—The US health care system is fragmented, lacks universal coverage, and has high prices. These factors contribute to higher spending.

What are the consequences of high health care costs in the US?

—High health care costs lead to financial burden for individuals, delayed or skipped medical care, and disparities in access to care.

What are some proposed solutions to reduce health care costs?

—Proposed solutions include implementing Medicare for All, expanding the Affordable Care Act, increasing price transparency, and addressing root causes of high spending.

How does excessive testing contribute to high health care costs?

—Excessive testing driven by fear of malpractice lawsuits leads to unnecessary procedures, higher costs, and does not always result in better outcomes.

What is the impact of a fragmented health care system on costs?

—Fragmented health care system and lack of universal coverage lead to higher costs, limited choices for patients, and disparities in access to care.

00:01Health care spending is rising globally, with the US spending twice as much as other countries.

00:19The US health care system is not cost-effective and lacks a prevention-driven approach.

02:06Hospitals and clinical care make up more than half of total health care spending in the US, contributing to higher costs.

03:31The fragmented nature of the US health care system, lack of universal coverage, and the use of narrow networks limit patients' choices and bargaining power.

08:05Excessive testing driven by fear of missing something and the litigious culture in the US also contribute to higher health care costs.