The Cost of drugs and hospitalization is much lower outside the U.S.”
When addressing the high cost healthcare in the U.S., it is important to realize CARE is the operative word. The issue is the high cost of hospital charges, laboratories charges, and prescription drug charges.
In the U.S., healthcare is 18% of our GDP, while it is 11% in other developed countries. The cost of drugs and hospitalization is much lower outside the U.S. For example, the cost of insulin in the U.S. is seven times higher than the cost of the same drug in Germany.
The U.S. healthcare system is a dual system. That is, both the private and public sectors provide coverage. Public health plans are funded via tax. Private health plans are funded by insurers, employers and individuals. Taxes and insurance are simply funding mechanisms, reflecting the cost of CARE.
As the cost of medical care and prescription drugs rise, so must taxes and insurance. Debating about changing to a single-payor system (whether that is 100% private or 100% public) does not address the problem in the U.S. It only addresses how to pay for it.