Health Insurance Problems in the United States

The U.S. is one of the wealthiest and most technologically advanced countries in the developed world, but many U.S. citizens and residents have complaints about the current health care system. According to the American Federation of Labor website, nearly 50 million Americans have no health care insurance at all. There are many reasons behind this problem, as well as other important issues associated with the current system.

Cost of Health Care

• According to an article in "The American Prospect," U.S. health care is the most expensive system in the world. In 2005, the average insured person spent nearly $6,700 out of pocket, which was almost $3,300 more than the next most expensive country, Canada. Health care insurance premiums for employer-sponsored insurance coverage continue to rise for employees. Some employers are shifting more and more insurance costs to their employees, and many employees cannot afford to pay larger co-pays and deductibles. While insurance coverage is waning, the cost for medical procedures is getting more expensive. Even with insurance, many people are responsible for out-of-pocket expenses that cost 10 to 20 percent of the actual procedure. When people are hospitalized or have a baby, they may have to pay thousands of dollars.

Prescription Issues

• Many HMO (health maintenance organization) insurance policies restrict coverage of prescription medications in an effort to save the insurance company money, according to the American Federation of Labor website. At the same time, American consumers have become more dependent on prescription medications. They are also introduced to these types of medications at younger ages, especially compared to older generations, which creates an unending cycle of use. Pharmaceutical companies continue to introduce newer, more expensive prescriptions that consumers must pay for to keep up with modern treatment plans.

Doctor Issues

• In the U.S., most doctors are not paid according to the quality of their care. They typically have contracts with specific insurance companies and are paid set amounts for specific procedures and services. This differs from other countries' systems, as their doctors have incentives for providing the best possible quality of care. For example, in the United Kingdom, 95 percent of doctors have financial incentives for providing high-quality service, compared to only 30 percent of doctors in the U.S. with this type of setup. This doctor-insurance company relationship also means that insured patients often must choose doctors based on their plan alone, rather than on a personality match or previous relationship. Another prominent issue is that many Americans do not have regular physicians, and tend to avoid routine preventative checkups and physical examinations. This means that many doctors don't know their patients' full medical histories, which may lead to poor care and errors.