How Subsidizing Healthcare Drives Prices Up Essay

Pages: 5 (1480 words)  ·  Bibliography Sources: 9  ·  File: .docx  ·  Level: College Senior  ·  Topic: Health  ·  Written: June 2, 2017

It doesn't help that the industries have their own point men in the government guaranteeing that nothing ever changes.

So, yes, higher prices in the US are an issue still -- and that is not likely to change because there is too much collusion between government and healthcare industries. In other parts of the world, there is apparently less collusion. Other countries are actually spending more on services than in the US. Greece for instance receives more inpatient care than anywhere else. Yet if the trade deals promoted by the globalists (i.e. multinational corporations) are enacted, prices will go up everywhere because the corporations will have total control. So the situation is not stagnant and the problems that keep the US in chains may easily spread to other countries. Healthcare is never "free" anywhere.


Comparison of Health Care Costs in the US to Other Countries

The US has the highest cost of healthcare of any country in the world. What's more, there is no guarantee of coverage. In other countries, such as Spain, healthcare is paid for by taxes -- so when someone is sick they can go to the doctor and receive free care. There is no bill because coverage is paid for by the tax on income.

In the US, taxes go to pay for coverage only for those who are poor (Medicare, Medicaid). And even then prices still go up.

Reasons for the High Health Care Costs in the US

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Reasons for the high health care costs in the US are numerous: there are no price controls, there is no real competition among insurance providers, drug manufacturers enjoy monopolies on drugs, and hospitals overutilize tests, exams and procedures in order to gouge consumers (Gawande, 2009).

Robbins (2012) notes that Americans simply are not healthy -- and that is another reason costs are so high. According to studies, "50 to 70% of the nation's health care costs are preventable, and the single most effective step most people can take to improve their health is to eat a healthier diet" (Robbins, 2012). But people don't want to eat right, so their health suffers -- and they in turn make use of hospitals and drugs, which increase their prices.

Essay on How Subsidizing Healthcare Drives Prices Up Assignment

Whether Hospitals or States in the US have tried Controlling Costs, What They Have Done and How That Has Worked

Philipson and Zanjani (2013) have shown that capping drug prices would "actively harm future patients" because "companies need a clear economic incentive to invest in new research lines." Research and development are expensive processes and this drives the cost of medicine up.

The Affordable Care Act attempted to reduce costs by place new regulations on hospitals and providers regarding treatment for returning patients -- but more regulations have just made it harder for quality care to be provided. Any attempt to control the cost of health care on the one hand while simultaneously subsidizing it with the other leads to a confusing mess in the marketplace that ultimately just hurts the consumer.

Bottom-Line: My Opinion of What Needs to Be Done about Health Care Costs in the US

What needs to be done about health care costs in the US is simple: either the government should stop subsidizing it completely or the government should use taxes to make it free for everyone. The former would pull out the supports that allow producers and providers to jack up costs. The latter would mean that in order to cover the costs of care, other government programs would have to be de-funded. This should not be a problem, however, because the amount of money that the US spends on foreign aid to other countries and on the "warfare" state -- useless wars in the Middle East and running the 100s of bases around the world -- would easily pay for everyone's health care in America. So either option would work: either the US government should stop subsidizing healthcare, which would naturally bring down prices, or it should make healthcare free by using taxpayer money on the taxpayers instead of on wars that ruin the lives of millions of people around the world.


Gawande, A. (2009). The cost conundrum. The New Yorker.

Philipson, T. (2013). Capping the drug prices scraps the Hippocratic oath. Forbes.

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Robbins, J. (2012). Beyond the Obamacare debate -- why… [END OF PREVIEW] . . . READ MORE

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APA Style

How Subsidizing Healthcare Drives Prices Up.  (2017, June 2).  Retrieved September 19, 2020, from

MLA Format

"How Subsidizing Healthcare Drives Prices Up."  2 June 2017.  Web.  19 September 2020. <>.

Chicago Style

"How Subsidizing Healthcare Drives Prices Up."  June 2, 2017.  Accessed September 19, 2020.