Healthcare in the U.S. has often been associated with high expenses and poor outcome. Unlike other countries, U.S. healthcare is said to be the most expensive by almost every measure. A new analysis on why Americans spend a lot in big pharma echoes previous findings that healthcare facilities and prescription drugs are getting dearer for the average citizen.
The latest study on the data retrieved from a few international organizations looked at the healthcare expenditures and performance outcome throughout the world. They made a comparison between the U.S. and other high-income countries. Researchers found that the major factors for the vast differences were linked with administrative costs as well as the high price of labor and products, and expensive prescription drugs.
The findings, published in the Journal of the American Medical Association, found that health spending accounted for 18% of the gross domestic product in the year 2016 — much higher than other countries where the expenditure varied from 9.6% to 12.4%.
A new analysis on why Americans spend a lot in big pharma echoes previous findings that healthcare facilities and prescription drugs are getting dearer for the average citizen.
When you crunch the numbers, this study points to the fact that Americans spend about $3.5 trillion annually on healthcare expenses. At the same time, health insurance premiums have shot up by almost 60%.
Americans face the brunt of price hikes. With the soaring health insurance premiums and the rule that everyone must purchase one, the number of uninsured individuals in the country is expected to rise.
The amount Americans spend to purchase prescription drugs had increased at an alarmingly fast rate. Take an example of a few drugs like AstraZeneca’s Crestor, AbbVie’s Humira and Sanofi’s Lantus. These medicines, used to treat common conditions, are more expensive in the U.S. when compared to most other countries.
Americans, in fact, land up spending $1,443 per capita on pharmaceuticals alone. Studies done in the past have highlighted that the growth in profits among major drug companies stems from increased prices and not the addition of new products.
In the political landscape, President Donald Trump had earlier promised to unveil a new system that would lower the price Americans pay for prescription drugs. But unfortunately, nothing has arrived yet.
Most Popular
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results
Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a
AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates
Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion