41

There are several reasons for that, following Papanicolas et al (2018): High regulatory and administrative burden. US has one of the highest regulatory and administrative burdens. US healthcare market might be unregulated in terms of prices and range of services and procedures you can get but it is actually quite heavily regulated when it comes to licensing,...


29

In Milton Friedman's view, the cost of health care in the USA is high because consumers don't pay for it directly, and the people paying don't directly care whether it's a good value for the money spent. Consumers pay premiums driven by average costs but pay little of the marginal cost of their health care. Insurers don't care much about reducing costs ...


13

It may not explain the entire difference, but GDP isn't a very good way to compare the amount of income that residents of different countries might spend on healthcare for a number of reasons. Usually this has to do with the structure of the economy, but GDP can also be distorted by high trade deficits, the effects of international tax avoidance, or specific ...


4

From what Wikipedia tells me on the Vermont case, the Vermont government feared increases in costs and taxes from such a reform. In the end, it boils down to what people/voters/decision-makers are willing to pay for a health care system they believe to be good for the people. Scandinavian countries provide lots of top-class public services (health care, ...


4

Healthcare spending as a percentage of GDP is the measure of spending relative to the value of entire nations output at market prices in a given year. I suppose you can call the total output the value of the economy so you could say that although note that economy is a wider concept that would normally include things omitted by GDP which can only measure ...


4

Having spent time with a few eager students of game theory myself, I sense that the "real" question you might have wanted to ask was: What is the best way to motivate people to get inoculated, given that they have varying attitudes towards the vaccine or vaccination in general.* To answer that question from a normative perspective, i.e. assuming ...


3

The accepted answer by 1muflon1 lists three factors that lead to the high cost of healthcare in the US, but two of items on that list are just that certain things cost more. It's like if someone asks you why your car doesn't go very fast on the freeway, and you say, "Oh, it's because the wheels don't go around as rapidly as on other cars." There ...


3

The most common one I have considered is health insurance as a private market. It becomes a case of the "market for lemons", where in this case the `lemons' are the people seeking insurance. https://personal.utdallas.edu/~nina.baranchuk/Fin7310/papers/Akerlof1970.pdf The simplified narrative goes something like this: Assumptions: Say insurance ...


3

There is one universal "solution" to monopolism without government intervention. Just allow the monopoly to do its worst. It will give very strong incentives to find ways to satisfy needs of potential clients of the monopoly in ways that would diminish market force of the monopoly. Basically it's bet that human creativity will eventually tame (or even kill) ...


3

This was actually already indirectly answered by the IGM forum. In this question the forum asks economists the following: The US spends roughly 17% of GDP on healthcare, according to the OECD; most European countries spend less than 12% of GDP. Higher quality-adjusted US healthcare prices contribute relatively more to the extra US spending than does the ...


2

There are different arguments here, depending on the points of view of the government and the insurance providers. I'm trying to answer to the general question on the title. Insurance providers aim at minimizing their costs with healthcare and the probability of health issues. Free birth control not only prevents unwanted pregnancy, but might also have ...


2

Prescription drug prices, like those of most other retail products, fail to satisfy the law of one price routinely. The most obvious observation is that prices differ across pharmacies at a given point in time (http://www.nber.org/papers/w8548.pdf) but just like supermarkets give discounts, so do pharmacies. If you always buy from the same shop, you are ...


1

After reviewing the two sources linked to by the CDC (a Rand report on the impacts of comorbid chronic conditions and a brief breakdown of US health expenditures) the exact methodology behind the 90% figure is not at all clear to me. What you are asking for would be a considerably more complex calculation. The most directly relevant study I'm seeing so far ...


1

The previous +1 answer gives the correct economic mechanism but let me give you some case specific answer here. First of all there actually already is another drug that targets the same disease called Spinraza (see here) with cost of \$750,000 for the first year and then \$350,000 per year after that, so about \$4 million a decade. Assuming people with this ...


1

If a firm cannot cover costs and make profit then it has no profit motive to develop and sell drug XYZ. So the profit motive is a "cost plus" model. The price must cover costs plus profit whether there is a single buyer or multiple buyers of the output goods. If drug XYZ makes a net profit in a domestic market, and if there is a marginal profit in ...


1

Leaving aside the cases of platform markets and other externalities and natural monopolies, what people who have no training in economics usually miss is question of the size of the market. It may very well be that there is enough demand for only one company to be profitable with the available technology. If a second company attempted to enter the market, it ...


1

The two main textbooks in any Health Economics class are: Michael F. Drummond - Methods for The Economic Evaluation of Health Care Programmes and Andrew Briggs - Decision Modelling for Health Economic Evaluation. These are must read books. Michael Drummond is a legend in the area of Health Economics. He is the author of two major textbooks and more than 600 ...


1

Check the correlation between health status variables and employment status. Start with simple pairwise correlations and then perform auxiliary regressions where you regress a health indicator on the employment status variables. If there is visible explanatory power in employment status for health indicators, you may want to treat health indicators as ...


1

Instead of just flagging this question for closing as "unclear what you are asking" (which I did), I will also provide an answer to show why this is so, in the hope that the OP will rework their question. First, there are two totally different questions here. The one is in the title: "Is healthcare equal in the emergency room?" Ignoring the ...


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