Why Can’t the USA Have Free Healthcare When They Have Free Schools?
No other developed nation in the world offers free healthcare, as it is funded through higher taxes. However, despite paying some form of healthcare premium, Americans are often left without the basic medical care they need. This article explores why the United States doesn't have universal healthcare and the disparity between free public education and inadequate free healthcare.
Understanding Healthcare in the USA
The term 'free healthcare' in the USA is a misconception. There is no such thing as free healthcare, as even universal healthcare systems are funded through dedicated taxes. In the case of universal healthcare, it is typically free at the point of delivery but is paid for in advance through taxes. The result is healthcare systems that are less expensive and more medically effective than the American system.
Why the USA Lacks Universal Healthcare
One of the main reasons for the lack of universal healthcare in the USA is the influence of private for-profit insurance and pharmaceutical industries. These entities spend heavily on lobbying and campaign donations to maintain the current healthcare system, thereby neutralizing the political establishment. This has ensured that the status quo remains, even though it results in more expensive healthcare for Americans.
Complexity and Costs in the USA Healthcare System
The complexity of the U.S. healthcare system leads to enormous administrative waste, particularly in insurance and provider payment systems. Administrative costs are significantly higher in the USA compared to developed nations with universal healthcare. For instance, in the USA, people pay both premiums to private insurance, which extracts billions for itself and does not contribute to healthcare, and taxes for the VA, Medicare, and Medicaid. These administrative costs are considered wasteful and parasitic, which adds to the overall cost of healthcare.
Poor Outcomes and High Costs in the USA
While the USA has one of the highest costs for healthcare, it does not match the medical outcomes of developed nations with universal healthcare. According to the Organisation for Economic Co-operation and Development (OECD), the average cost of healthcare per person in the USA was over $12,500 in 2020, while the average cost in OECD countries was only about one-third of that. Additionally, a significant portion of the population—38% of the population in 2022—did not seek medical care because they could not afford the deductibles and copays. This further illustrates the contradiction between the high costs and the lack of accessible care.
Factors Contributing to High Healthcare Costs in the USA
The high cost of healthcare in the USA can be attributed to several factors, including:
Growing Demand: The increasing population and aging demographics put a strain on the healthcare system. Rising Financial Aid: Higher costs for medical services and treatments lead to increased financial aid and insurance premiums. Lower State Funding: Lower funding from state governments exacerbates the financial strain on healthcare providers. Exploding Cost of Administrators: Increasing administrative staff and costs lead to higher overall expenses. Bloated Student Amenities Packages: Universities and colleges often have extensive amenities, adding to the tuition costs.The most expensive universities—such as Columbia, Vassar, and Duke—charge over $50,000 per year for tuition alone. This does not include additional expenses such as room, board, fees, and other student amenities. Similarly, healthcare in the USA is a full-cost recovery system, and individuals must have good insurance to cover the enormous healthcare costs.
Conclusion
The USA’s healthcare system is one of the most expensive in the world, but it fails to provide the same level of care as universal healthcare systems found in other developed nations. This disparity can be attributed to the influence of private for-profit insurance and pharmaceutical industries, which maintain the current system through significant lobbying and campaign contributions. As a result, Americans pay high premiums and taxes yet face financial barriers when seeking medical care.