The Future of Healthcare

The United States spends $8,508 USD per person on healthcare each year, a figure that is more than double the spending of countries such as France and Australia. Paradoxically, the United States also has one of the most expensive healthcare systems in the world. The United States has a lower life expectancy than both Australia and Franc, perhaps in part because it’s so expensive to go pay a visit to the doctor. So if healthcare spending isn’t increasing the life expectancy of Americans, where is the money going? What does healthcare spending mean for the average American? Read on to find out.

The Cost of Doctor’s Visits

Healthcare spending in the United States has grown disproportionately to the rest of the American economy since 1960. While wages have increased by 16% and Gross Domestic Product has increased by 168% in the past decades, healthcare spending has increased by 818% since 1960. In spite of this spending, Americans still pay exorbitant amounts for doctor’s visits, surgery, and prescriptions. Per capita spending on prescription drugs was $947 in the United States in 2011, while comparable countries such as Canada and Australia spent $692 and $503 USD per capita, respectively.

The Cost of Health Insurance

The increasing cost of health insurance only means that more and more Americans opt not to purchase coverage. Annual health insurance premiums for the average household totaled $16,800 USD in 2014. Even with the Affordable Care Act, marketplace premiums have not changed and the rate of uninsured Americans has increased in the past years. While the percentage of employees who choose to purchase health insurance offered through their employers has remained relatively stable since the late 1980s, those who do not have access to employer-subsidized health insurance are less likely to purchase coverage. Those with pre-existing conditions are also barred from buying coverage by insurance companies.

Predictions

Healthcare spending is projected to double in the years to come. Unfortunately, given the current situation, it is impossible to predict that increases in healthcare spending will mean costs going down for consumers. Insurance premiums, in the very least, are not expected to decrease. Moreover, when the government spends more than projected on healthcare it’s taxpayers who foot the bill. Unless there are changes made to improve both the efficiency and efficacy of healthcare, increases in government spending do not translate to a lower cost to the American public.

Quick Summary

The cost of healthcare in the United States is affected by a number of factors. Healthcare spending in the United States is surprisingly high considering the average American life expectancy and the cost of care for the consumer. Health insurance premiums are increasing, causing more and more Americans to choose not to purchase insurance every year. In spite of the Affordable Care Act, there are flaws in the system which need to be addressed by the government before Americans start paying reasonable amounts for adequate healthcare. In short, the cost of healthcare is not expected to decrease in the near future.