Key Takeaways:
* People in the U.S. are increasingly displeased with the country’s health care system.
* The quality of healthcare, as per recent polls, has hit the lowest satisfaction rate since 2001.
* The health insurance industry’s focus on profits is denying Americans health care access.
* In recent election campaigns, key political figures have hardly addressed health care topics.
* The current health care system profits insurance companies while burdening average Americans with rising costs and denied services.
Outrage Over Health Insurance Mounts in the U.S.
In recent weeks, Americans’ discontent with the health care system has become increasingly evident. This anger was brought to the forefront following the assassination of UnitedHealthcare CEO Brian Thompson, igniting debate among pundits and political factions. However, at its core, this hostility universally stems from the existing health care model that prioritizes profits over patient care.
Trust in Healthcare Quality Slumps to New Low
Currently, in the 21st century, the general consensus among Americans is that the nation’s health care quality is plummeting instead of progressing. Satisfaction with the quality of healthcare has slumped to its lowest point since 2001, according to recent polls. Strikingly, these polls indicate Americans are more dissatisfied with health care coverage than they are with the quality of care.
Profit-First Approach Driving Failure in Coverage
The root cause of American’s dissatisfaction with health care coverage lies in the insurance industry’s profit-first approach, which often results in denied care. This scenario serves as a perfect example of market failure. Instead of resulting in improved services and lower prices through competition, the current model has evolved into an oligopoly. This has, in turn, driven up costs and left many uninsured.
Silence on Healthcare By Political Figures
Politicians from both major parties should be compelled to address the existing healthcare crisis. Yet, figures such as Kamala Harris and Donald Trump barely touched upon health care in their recent campaign speeches. Citizens, however, face the reality of soaring premiums, crippling medical debts, as well as denial of much-needed care.
Economic Impact of Healthcare Failure
While patients face the brunt of healthcare’s economic burdens in rising costs, insurance companies are managing to turn massive profits. This profit-driven model seemingly prioritizes shareholder interests over patient health. This has left many Americans feeling betrayed by insurance companies, fueling a widespread demand for a significant systemic change.
Busting the Myth of Competitive Health Insurance Market
Contrary to popular belief, the U.S. health insurance system does not thrive in a highly competitive market, but rather reflects a state of market failure. Instead of fostering competition to lower prices and improve services, the insurance system works more like an oligopoly. This model boosts costs while keeping millions uninsured. Let’s review three critical failures of this current system.
1. Information Asymmetry: The insurers intentionally make policy details vague, leaving policyholders to figure out the true cost and coverage.
2. Adverse Selection: Here, healthy people avoid care to save money while sick ones bear the brunt of expensive plans.
3. Externalities: Neglecting to provide universal coverage creates negative externalities. For instance, untreated health issues often lead to more expensive emergency treatments and lost work time.
The Need for a System Overhaul
Given the astronomical administrative costs and the inapplicability of an employer-based insurance model in a gig economy, it’s clear that the U.S. health care system requires a drastic revamp. As the current model puts an unfair burden on society in terms of higher spending and worse outcomes, a public outcry for a change of system is becoming increasingly louder. Until a new, people-centered insurance model is implemented, the U.S. will likely continue wrestling with a system that enriches the few at the expense of the many.