Why does medical care cost so much in the U.S? Can someone breakdown the reasoning for the cost

[Anonymous]

For example, someone can go to the hospital and get an IV and it cost over a thousand dollars. Man, where is this and other costs coming from? What inspires these costs?

[WoIIie]

Labor costs, potential liabilities, limited supply and high demand all drive up prices. Not only that, but competition is extremely limited. Weak competition is bad for the consumer.

You can read a few articles where patients fly overseas to India to have have a procedure done at a fraction of the cost in the US. That's an example of a competing market, but it's simply not enough to dent US prices.

When you get into the lower echelon of medicine, which involves basic OTC drugs like Tylenol and Advil, the prices are actually quite reasonable. Why? Labor costs are very low, liabilities are avoided on the label, supply is plentiful, and there is healthy competition.

You have to consider all of these factors when trying to figure out why a market isn't exactly at it's equilibrium. I'm not sure that free healthcare would fix this. There must be more competition and higher supply. No need to eliminate the free market here.

[martyfellow]

II's dominated by drug and medial equipment manufacturers who make profit out of people's medical needs. Also, hosptials must charge to make up for all the uninsured people who can't pay for treatment, and the government prefers to spend money on war rather than on makng health care affordable.

[martyfellow]

The only sensible answer

[scarlettloba]

As long as medicine is a money maker, the pursuit for profit will never be satisfied. The only way to make a profit is to charge as much as possible for something. These profits go to the pharmaceutical CEOs, medical device shareholders, insurance adjusters and so on. The only way to change this is to take capitalism out of health care.

[Betwyn]

Have you ever looked at what Doctor's drive?

[Asker]

Yes but only certain ones. However, you think doctors because the high cost of medical care?

[Betwyn]

They get paid well.. How do you think they get paid? From what the hospital bills you .. they also have to pay utilities, rent, taxes, maintainence on the equipment and building, supplies.. new equipment.. drugs...

[tex151]

The hospitals have bills to pay too, so every time you go you probably paid part of the electricity bill.

On a different note it's funny you block off anonymous answers, yet you asked the question anonymous.

[cuteLiLbunny]

we have the best medical care if it was free for everyone we wouldn't try so hard to be the best

[Asker]

im not saying it should be free I'm just seeking a explanation for the cost. Basically what justifies the cost? What causes the high cost?

[cuteLiLbunny]

hm I think it part manufatoring, part for more research, and part incentive

[Deft_maiden]

Insurance and drug manufacturers

[Asker]

well insurance is high because the cost is high. Are you saying drug manufacturers because high medical prices? If so, couldn't a smaller company easily be founded to take over the sector if they choose to have lower prices/