The state of healthcare in the United States presents a perplexing paradox. Despite paying exorbitantly higher prices for medical care and prescription drugs compared to citizens of other wealthy nations, Americans continue to experience worse outcomes and a lower life expectancy overall. A prime example is the per capita cost of prescription drugs, which reached a staggering $1,443 in 2016. Comparatively, this figure is anywhere from 54% to 210% higher than what citizens of other wealthy nations pay.
Additionally, the overall cost of healthcare in the United States is significantly higher than in other countries. Despite this, the U.S. lags behind in terms of life expectancy, indicating that high costs do not necessarily correlate with better health outcomes. In 2021 Americans’ collective average life expectancy was only 76.1 years. This puts us well behind other countries like the United Kingdom (80.8 years), Australia (83.4 years), and Japan (84.5 years).
It should be obvious that the American healthcare system is in dire need of comprehensive policy changes that address the root causes of escalating costs. After all, the US pays about twice as much for worse outcomes than our fellow peers do. We must move beyond partisanship around healthcare and instead focus on implementing meaningful reforms. What are some areas that we should focus on?
- Affordable Prescription Drugs: The soaring cost of prescription drugs places an undue burden on Americans. By introducing measures such as price negotiations, increased transparency, and promoting generic alternatives, we can alleviate this financial strain and ensure access to necessary medications. Regardless of where you fall on the political spectrum, it’s still hard to stomach the fact that people in the United States pay so much more for our prescriptions.
- Emphasizing Preventative Care: In the United States, it’s not unusual for people to forego preventative medical care for their conditions due to prohibitive cost. Oftentimes this means a future visit to an emergency room, and also pricier treatments to fix a huge problem that could have been taken care of early. Widening access to quality affordable preventative care helps all of us in the long run by leading to better health outcomes and cost savings.
- Health Insurance Reform: Expanding access to affordable health insurance coverage is crucial in reducing the financial burden on individuals and families. Building upon the measures introduced by the Affordable Care Act or exploring alternative models can ensure broader coverage and mitigate the barriers to accessing care.
- Investment in Public Health: Over time, due to a combination of systemic problems and cultural norms, Americans have grown less healthy than many of the rest of their peers in the developed world. This narrative can be changed. By focusing on promoting healthy lifestyles, disease prevention, and community-based interventions, we can lower healthcare costs associated with treating preventable conditions.
Addressing the crisis-level prices in American healthcare necessitates a collaborative approach. Policymakers, healthcare providers, pharmaceutical companies, and citizens must come together to advocate for meaningful reforms. Furthermore, prioritizing research and innovation can drive progress in healthcare delivery, cost-effectiveness, and the development of groundbreaking treatments. Healthcare in America has also grown increasingly consolidated, thus encouraging competition and transparency within the industry can also foster more affordable care while expanding healthcare options available to the average American.
It’s up to us to put our divisions aside and to come together and fix our ailing healthcare system. Our literal wellbeing depends on it.
Lynn Freshour is a Research Director and reigning data nerd at GVC, an inclusion business strategy firm, as well as at Insight Squad, a DEI data analytics firm. To learn more, visit diversitystrategy.com.