Health Care System in United States is sick!! Even with best technology, the health care is beyond the reach of a large population of the country. The rising cost of providing care may be attributed to:
New Technologies – The newer technologies increase the cost astronomically and sometime the benefits are doubtful.
Increased longevity – Leading to greater utilization of services.
Malpractice Lawsuits - Cost of defending cases is huge and adds to the cost of providing care. Moreover, physicians practice defensive medicine for due to CYA syndrome.
Administrative Cost – The huge cost of administration of plans and the profits paid out to the stock holders add billions of dollars to the health care costs though this does not contribute towards providing care.
Barriers to entry in Pharmaceutical Industry – Generic drugs costs lot more in US than in other countries. A number of proprietary drugs some of them similar to cheaper to existing drugs are aggressively marketed increasing the cost of health care.
