Why Is Medical Care Expensive in the US?

DOI: 10.4236/tel.2014.41010   PDF   HTML   XML   3,168 Downloads   4,654 Views   Citations

Abstract

America spends more on medical care than any other nation, with no noticeable difference in results. It is commonly thought that this is a result of a defect in the organization of medicine in the US, which can be repaired by “reform.” However, medicine is a labor-intensive good and labor is more expensive in the US. We show that these conditions will invariably lead to a higher price and a higher percentage of GDP spent on medicine. Thus, while reforms may improve the functioning of the health care sector, they are unlikely to have a major effect on spending levels.

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K. Miyagiwa and P. Rubin, "Why Is Medical Care Expensive in the US?," Theoretical Economics Letters, Vol. 4 No. 1, 2014, pp. 68-71. doi: 10.4236/tel.2014.41010.

Conflicts of Interest

The authors declare no conflicts of interest.

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