I don’t doubt that insurance introduces a certain amount of overhead into the equation (after all, they have offices and wages to pay), but I’m a bit skeptical of that 50% figure. Do you have a source for that?
Thanks, appreciate the link. However, it does not corroborate the theory that health insurance companies alone are responsible for that difference. From the article:
There are many possible factors for why healthcare prices in the United States are higher than other countries, ranging from the consolidation of hospitals — leading to a lack of competition — to the inefficiencies and administrative waste that derive from the complexity of the U.S. healthcare system. In fact, the United States spends over $1,000 per person on administrative costs — approximately five times more than the average of other wealthy countries.
So while the administrative overhead definitely IS very high compared to other countries, it doesn’t even account for more than 10% of the total healthcare expenditure — meaning eliminating insurance companies wouldn’t just magically make healthcare 50% cheaper for everyone.
I don’t doubt that insurance introduces a certain amount of overhead into the equation (after all, they have offices and wages to pay), but I’m a bit skeptical of that 50% figure. Do you have a source for that?
In 2024, the United States spent an estimated $14,885 per person on healthcare … while the average for wealthy OECD countries, excluding the United States, was $7,371 per person. https://www.pgpf.org/article/how-does-the-us-healthcare-system-compare-to-other-countries/
Thanks, appreciate the link. However, it does not corroborate the theory that health insurance companies alone are responsible for that difference. From the article:
So while the administrative overhead definitely IS very high compared to other countries, it doesn’t even account for more than 10% of the total healthcare expenditure — meaning eliminating insurance companies wouldn’t just magically make healthcare 50% cheaper for everyone.