Introduction
US healthcare is one of the largest sectors of the American economy, in which huge resources are concentrated. The US healthcare system has historically developed under conditions of an almost free market, with very limited state influence, which was largely facilitated by liberal ideology. The level of health care costs in the United States is significantly higher than the level of costs in any other country. At the same time, the death rate in the United States is losing out in comparison with other countries, which suggests that the United States does not benefit from additional healthcare costs. Therefore, it is important to find out why healthcare costs have increased in the United States.
Discussion
Now the United States of America is an example of a model of private medicine with strong market mechanisms and multi-channel financing combined with a developed system of state support and regulation. From chapter 8 of the textbook, the history of US healthcare, the impact of the Great Depression on healthcare, and basic medical programs requiring large investments were clarified (Weitz, 2017). The level of growth in healthcare costs exceeds the level of economic growth, leading to the fact that an increasing share of the total domestic product goes to healthcare. Respectively, its part is reduced, and directed to other important purposes (Weitz, 2017). Perhaps a subtler reason for today’s move to curb prices lies in the dynamics of Medicare and Medicaid spending. The public costs of these two programs have grown even faster since their introduction than the personal costs of healthcare in general. Expanded medical capabilities are likely to account for most of the cost growth.
Conclusion
Thus, medicine in America is one of the key factors of the social well–being of the population. Every year, the government allocates a lot of money to this area. In addition, social health programs also require large expenditures. Consequently, the main reasons for the increase in US healthcare costs can be considered the expansion of Medicare and Medicaid and the expansion of medical opportunities.
References
Weitz, R. (2017). The sociology of health, illness, and health care: A critical approach. Cengage learning.