Running Head: HEALTH SYSTEM
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7-2 Short Paper: U.S. Health Care System
HRM 630
SNHU
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The health care system of the United States is not truly a free and market-based
system. There are a number of reasons for this. In the health care setting, a free market system
refers to a system in which the prices of the different health care services as well as goods are
freely in mutual agreement between the health care providers and the patients. Moreover, the
forces and laws relating to demand and supply are free from any kind of government
intervention as well as other authorities. A market-based health care system is the system in
which the consumers will be able to choose from the available options on the basis of their
expectations relating to quality, outcomes, and cost.
The United States has one of the most expensive and inequitable health care systems
in the world (Birn & Hellander, 2016). The health care services delivered in the US are
known to be far more expensive than in any other country across the globe. In the year 2014,
the total healthcare spending in the United States was USD 3.1 trillion and about USD 9,694
per person. It is more than 17.7% of the gross domestic product (GDP) of the nation. The
several problems that exist in the health care system of the United States, such as high out=-
of-the-pocket costs, spiraling costs, as well as coverage gaps, clearly show that it does not
have a truly free and market-based health care system.
Moreover, the health care market in the United States is not free from government
interventions. The Trump administration played a vital role in providing low-cost and high-
quality health care through the creation of more choices in terms of health care and increasing
competition among healthcare providers. The government made an effort to make health care
services as well as products more affordable for the people by significantly lowering the
prices of prescription drugs. It also expanded the access of people to more affordable health
care options. The government also brought about changes in the policies in order to allow the
patients to gain more control over their health care and ensure transparent pricing of the
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health care services and goods. Moreover, under this government, a number of generic and
affordable drugs were approved by the Food and Drug Administration.
The health care system of the United States is often characterized by inefficiencies,
poor outcomes, varying levels of health care qualities, and opaque pricing. There are a
number of factors that prevent the health care system of the United States from becoming a
free market. One of the important factors is that the insurance companies, as well as the
government in the US, act as the central players (Tolbert, 2018). They have a stronghold on
what health care services are delivered to the patients and what elements of health care are
paid by the consumers. This mainly limits the US health care system to operate as a free
market.
The health care system of the United States is unique. It does not have universal health
care coverage or a uniform health care system. Health insurance companies play a vital role in
the health care system of the United States. The health care system of the nation can be
actually described as a hybrid system (The U.S. Health Care System: An International
Perspective, 2021). Health disparities, poor health care outcomes, and high costs of health
care services and products are some of the major problems that still exist in the US health care
market setting.
There is a need for the US health care system to move towards a free and market-based
system. However, it will require significant efforts and will take time. In order to shift
towards a free market, the health care system of the United States can adopt a number of
ways. The health saving accounts only enable individuals with high-deductible health plans to
effectively pay their medical bills free of any tax. It sheds light on the fact that the insurance
of the consumers does not start paying the health care bills until the individuals reach the
deductible level. Direct contracting is another beneficial method. Employers in the US need
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to stop working with insurance companies in order to provide their employees with
appropriate health benefits. Instead, they can directly make contracts with the hospitals.
References
Birn, A. E., & Hellander, I. (2016). Market-driven health care mess: the United States.
Cadernos de saude publica, 32(3).
Tolbert, A. (2018, October 4). Does the U.S. have 'free market' health care? The Tennessean.
Retrieved February 18, 2022, from
https://www.tennessean.com/story/money/industries/health-care/2018/10/04/does-u-s-
have-free-market-health-care/1516766002/
The U.S. Health Care System: An International Perspective. (2021). Retrieved February 18,
2022, from https://www.coursehero.com/tutors-problems/Nursing/34072965-The-
major-area-of-concern-in-the-United-States-is-the-health-care/
