Well, the United States is the highest spender in healthcare compared to other countries. While rightly so, it has one of the worst healthcare systems. In fact, most Americans are worried about affording health care. Why so? We’ll highlight some of the pressing factors in this article.

Why is it is expensive?

It is because the health insurance takes a for-profit model according to Carmen Balber, Consumer Watchdog executive director.

Also, private companies populate the health insurance sphere. As such, most patients are forced to pay for themselves.

On the same note, Dr. Georges Benjamin, executive director of the American Public Health Association said that lack of universal health care further increases its cost. Other reasons include:

Highly fragmented

Dr. Benjamin points out that the U.S. health care is high fragmented which prolongs the process of administration and increases overhead costs. This is then passed to the patient. Private companies also have to dictate who receives insurance unlike Medicare, which is cheaper.

You are charged per service

Another reason why it is expensive is that you are charged per service. This causes health practitioners to offer more services since they are paid for volume. Besides, they don’t refer to historical data about a patient, but rather advocate for unnecessary tets and scans.

Lack of regulation

Lack of regulation by the government further allows health care providers to quote exorbitant prices. For example, drug makers have the upper hand when it comes to drug price negotiations.


While the system is fragmented, in some areas only a handful of companies are involved in the healthcare business. This allows them to adjust prices since patients don’t have a choice. Balber said that we’ve encouraged the merging of players in the sectors that end up acquiring local physicians leaving patients with only a few options.