The True Reasons Why Medical Costs Are So High

While it’s easy to see some of these problems from a logical perspective, it’s very hard to actually fix them.

Source: The True Reasons Why Medical Costs Are So High

The Insurance Dilemma


Over time, health insurance became popularly provided by employers in the United States and unions fought hard to make insurance available to all full-time workers.

While on the surface, this may seem like a good thing — after all, why should only some people be insured? — it led to a problematic pricing environment. Doctors and healthcare organizations would be inclined to charge more for services when they knew insurance was going to be billed; it didn’t add more financial strain to patients but generated more revenue. In turn, insurance companies caught on and imposed policies that stated they wouldn’t pay more than standard prices paid by uninsured patients.

In effect, this led to a constant push to move prices higher; insured patients barely noticed, since they weren’t the ones footing the bill, but uninsured patients began having to pay more and more for their services.

Lack of Price Transparency and Competition

The lack of price transparency and lack of competition means that organizations in the healthcare industry aren’t incentivized to offer lower prices to consumers.


The Doctor Shortage and Costs of Professional Services

Administrative Waste