When health bills become a leading reason for personal bankruptcy in the United States, American patients have a problem on their hands. Today, Americans pay more for their healthcare than any other nation world. Yet somehow, our life expectancy rate is the lowest out of large, wealthy nations.
In fact, as of 2022, medical bills made up more than half of all debt in our country. According to the USA Today, there are a few primary reasons why America’s healthcare expenses are so high and rising higher each day.
- Lack of price limits: there are more 24/7 specialists than medical facilities which drive up costs
U.S. hospitals have more specialists than any other hospitals in the world but having access to specialized care as well as 24/7 drives up the costs, especially in Metro areas. Since patients have more space and privacy in hospitals versus some facilities abroad, that service will also increase costs. - Hospitals and doctors get paid for services, not outcomes
Doctors are paid by the amount of tests they order and procedures they perform, regardless of the outcome. For payout, the insurer pays the doctor, lab, or hospital based on negotiated, in-network fees. - Specialists get paid much more ‒ and want to keep it that way
Doctors who provide specialized care, such as cardiologists or cancer doctors, get much higher pay per care rate than those who practice general medicine. There are some who see this as a reward system for those who choose to specialize in care while skimping on those who offer services to provide preventative care. - Administrative costs inflate health spending – one of the biggest sources of wasted medical spending is on administrative costs
While Medicare’s official spending report doesn’t offer an official number on administrative costs, Harvard’s Cutler estimates that up to 25% of medical spending is on those costs. - Americans pay far more for prescription drugs than people in other wealthy nations
As there are no price limits on drugs, Americans pay more on life-saving prescriptions than those in other wealthy countries. Prescription prices in the U.S. run 2.5 times more than those in 32 comparable countries.
Better opportunities to save could be on the horizon for those struggling with medical debt. Should Congress pass the Health Care Sharing Ministry Tax Parity Act, the bill would ensure that those who opt into health sharing ministries receive similar tax and savings rewards as those who have traditional insurance – all while making it clear that health sharing ministries are in fact ministries and not the same as health insurance. While many of these factors and policies are outside Solidarity’s control, we will continue to do our part to keep quality healthcare affordable for our Members in 2025 and beyond.
Solidarity also remains committed to healthcare price transparency. We believe that the cost of healthcare should never be a mystery and that patients should know what they are expected to pay for treatment well in advance of their appointments. To that end, we always do what we can to negotiate unfair or inflated medical bills for our patients who think they’ve been overcharged by a provider. We also work with our Members to help them find physicians who align with their values and who do their best to protect the human dignity and wellbeing of each person they treat.
If you think Solidarity could be a good option for your family’s healthcare needs, give us a call at 737 SHARING to learn more about how we can help you achieve your health goals.
