U.S. Healthcare: Pt 2 - Cost

The Organization for Economic Co-operation and Development(OECD) chart shown above graphically demonstrates how far the U.S. healthcare costs exceed the rest of the developed countries on a per-capita basis.

Unfortunately, most Americans believe that the healthcare system in the U.S. is the best in the world; after all, we spend much more than any other country. But the facts show a different picture,

When it comes to cost, the national vision is much clearer.Thanks to the recent dialog surrounding the Affordable Health Care Act, most people realize that the United States spends more per-capita on health care than any other country. In fact, the 2008 data shown above, indicates that the U.S. spent over 50 percent more on healthcare than second ranked Norway

Many however, fail to understand that the growth rate of healthcare spending in the U.S. is also one of the highest in the world.

This growth in spending is fueled by several factors such as an ageing population, more expensive diagnostic technology and the fact that our healthcare system is based on a patchwork of uniquely designed functions that lack comprehensive integration. Added to that is a political system where industry oriented lobbying far out weighs that of the consumer.

U.S. Healthcare Costs

Health care costs have been rising for several years. Expenditures in the United States on health care surpassed $2.3 trillion in 2008, more than three times the $714 billion spent in 1990, and over nine times the $253 billion spent in 1980. For comparison, current gasoline costs are about 3 times the 1980 prices.

When viewed as a percentage of the Gross Domestic Product (GDP), we have the most expensive healthcare system in the world by a wide margin. The table below indicates the healthcare costs for various developed countries as a percentage of their GDP. Again the U.S. leads all the other developed countries by at least 50 percent.

Combine these numbers with the fact that healthcare spending in the U.S. and the majority of developed countries is increasing faster than the overall growth rate; and you have a staggering rise in healthcare costs as a percentage of their gross domestic product (GDP).

Stemming this growth has become a major policy priority, as the government, employers, and consumers increasingly struggle to keep up with health care costs. Without changes our healthcare system in the U.S.

Part 3 - A look at Germany's Healthcare System