The US Healthcare System: Why It's Broken and How We Can Fix It

According to the latest data, the US spends a staggering $910 billion annually on Social Security, $588 billion on Medicare, and $368 billion on Medicaid. Despite these massive investments, why are we still grappling with a subpar healthcare system?

Why is the Healthcare System Still So Lacking?

The short answer is that the US healthcare system is fundamentally flawed due to its business model. Healthcare and longevity are lucrative areas, which has led to a hierarchy based on financial resources, not need. Everything in the healthcare sector is negotiable, driven by financial gain rather than patient care.

Corruption and Inefficiency

The root of the problem lies in the corruption and inefficiency of the US government. Washington is inherently corrupt, making it difficult to implement systemic changes. The current healthcare landscape is a combination of public and private entities, each with their own vested interests.

Is Healthcare a Market or a Human Right?

Healthcare can be seen as either a commodity to be bought and sold or a fundamental human right. The US has been duped into believing that private insurance companies would meet our healthcare needs, but these corporations waste up to 20% of their budget on overhead. This includes hefty CEO compensation and bribes to politicians. In contrast, Medicare only wastes 0.9%. Moving towards a single-payer national health system could save everyone up to one-fifth of the total healthcare bill. When we view healthcare as a human right, not a corporate asset, America might be ready to join other developed nations.

The Driver of Inefficiency

A significant factor is the high cost of keeping people alive and diagnosing them. These costs can be three times higher than the actual treatment. Additionally, healthcare spending stands at $3 trillion, with Medicare and Medicaid accounting for ~$1 trillion. This contrasts sharply with the average life expectancy of 78.8 years, where 80% of medical costs occur in the last six months of life.

While younger, employed, and healthy individuals pay substantial private insurance premiums, it is the government's responsibility to cover healthcare when people are old and sick, starting at age 65. This leads to a “socialized cost and privatized profit” model, which is inherently inefficient and unfair.

Improving the Funding System

Our healthcare system is not fundamentally broken; it is actually quite good. The issue lies in how it is funded. Social Security, which is not a health program, is relevant to the large public expenditure. Approximately $260 billion in tax revenue is foregone through tax deductions for employer-sponsored insurance.

Medicare's negotiations for drug prices are limited and are often forced to pay sticker prices, lacking the power to restrict spending. Medicaid, on the other hand, has more control. When an 82-year-old man with prostate cancer chooses to be treated, despite the high probability of dying before it impacts his health, it highlights the current inefficiencies. Congress has since blocked Medicare and Medicaid from negotiating lower prices, leading to higher costs.

Path Forward

To improve the US healthcare system, a shift towards a single-payer national health system is necessary. This would address inefficiencies and ensure that healthcare is affordable and accessible for all. Implementing such a system would also allow for better negotiation of drug prices and reduce the overall cost of healthcare.

In conclusion, while the US healthcare system is not lacking in quality, it is in dire need of reforms to address its business-oriented and inefficient funding system. By moving towards a more equitable and efficient model, we can improve healthcare outcomes for all Americans.