Running Head: HEALTH SYSTEM
1
7-2 Short Paper: U.S. Health Care System
HRM 630
SNHU
HEALTH SYSTEM
2
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 health
HEALTH SYSTEM
3
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 to stop
HEALTH SYSTEM
4
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/
