Full disclosure: I have strong opinions about health insurance in general.
Based on extensive experience in the health insurance industry, I think
insurance is a good idea, but it should not be the primary mechanism for
paying for health maintenance. Instead, it should be a safety net for
catastrophic illnesses or injuries. I realize that medication cost is one
reason people seek health insurance. However, there are a few key
reasons that people in the U.S. pay higher costs for drugs than other
countries. 1) In the U.S., no single entity can negotiate with drug
manufacturers on behalf of the American public (Picchi, 2015). So, a lack
of bargaining power disadvantages American consumers. 2) High
marketing cost (Picchi, 2015). In the U.S., pharmacy companies can
market directly to consumers (Picchi, 2015). That is not so in other
countries. 3) In the U.S., there are no caps on cost or price increases
(Picchi, 2015). “Some European countries and Canada cap cost
increases for drugs (Picchi, 2015).”
DeBenedet (2012) wrote that when people have insurance, they are
more likely to access and utilize healthcare resources, and it is a logical
leap to think that would help people be healthier. However, increasing
evidence shows that much of the care we receive does not provide
measurable clinical benefit, and more care isn’t always better
(DeBenedet, 2012). DeBenedet (2012) explained that having health
insurance probably doesn’t correlate with better health because people
are more in control of their health than they realize. Staying healthy is
generally the result of good personal lifestyle choices and suitable
environments rather than insurance coverage, doctors’ advice, medical
interventions, or medications. Except for strongly penetrated genetic
diseases, lifestyle choices can reduce the risk of chronic or severe illness
even if a person has a family history stacked against them (DeBenedet,
2012).
References
DeBenedet, A. (2012, July 2). Does health insurance actually make
people healthier? Retrieved February 6, 2022, from Time
Magazine: https://ideas.time.com/2012/07/02/does-health-
insurance-actually-make-people-
healthier/#:~:text=It%20seems%20logical%20that%20when%20w
e%20have%20insurance%2C,benefit%2C%20and%20that%20mo
re%20care%20isn%E2%80%99t%20always%20better.
Picchi, A. (2015, December 1). 5 reasons why Americans pay so much
for drugs. Retrieved February 6, 2022, from CBS News:
https://www.cbsnews.com/news/5-reasons-why-americans-pay-so-
much-for-drugs/
