In 1970, the average American spent about $353 a year on healthcare. Fast forward to 2023, and that figure skyrocketed to $14,570. Even when you adjust for inflation, the increase is staggering—from $2,151 in 1970 dollars to over $14,000 today. That’s almost a sevenfold jump.
Healthcare spending now accounts for 20% of the U.S. GDP. That’s one dollar out of every five spent on our economy. This trend of rising costs is troubling and simply can’t go on like this.
Even though medical expenses usually rise faster than inflation, the gap has widened significantly. The U.S. spends more on healthcare than any other country, yet our outcomes lag behind. Our life expectancy is around 79.3 years, ranking us 55th globally. Countries like Japan and Italy see averages over 83 years, showing a clear disparity in health outcomes.
Our healthcare system is fragmented: Medicaid helps low-income individuals; Medicare supports those over 65; while many employees get varying degrees of coverage from their jobs. Some even purchase insurance privately. This complex system leaves about 27 million Americans uninsured as of 2024, according to recent data. If premiums rise further, that number is likely to grow.
This inefficient setup results in higher costs for poorer health outcomes. Many who lack insurance often receive no preventative care. Conditions that could be treated early become emergencies, leading to worse health and ballooning treatment costs.
Currently, Congress is debating extending COVID-era health insurance subsidies. Yet, simply extending these subsidies feels like a temporary fix for a much larger problem.
A more lasting solution would be a universal healthcare system. Unfortunately, achieving this seems unlikely, despite discussions around it. Senator Bernie Sanders has long advocated for such changes, yet political obstacles remain significant. When the Affordable Care Act was passed in 2010, attempts to add a public option—allowing people to choose Medicare—failed to gain enough support.
Having a public option could help. Just like students can choose between public or private colleges, a choice in healthcare could provide better options. Starting with those aged 55-64 could allow for a gradual rollout, potentially extending coverage to everyone over time.
Medicare has proven to be more efficient than private insurance. With lower overhead costs and little spent on advertisements or profits, Medicare directs most funds to hospitals and doctors. This allows for faster claim processing and overall smoother functions.
For those concerned about costs not covered by Medicare, Medigap insurance provides affordable options to cover out-of-pocket expenses.
While extending subsidies under the Affordable Care Act provides relief now, it doesn’t solve the core issues. Lawmakers need to push for a public option within Medicare, ensuring that all Americans can access healthcare affordably.
Another significant factor driving costs is the high price of prescription drugs, which is a topic for another time. For now, let’s hope lawmakers take action that truly benefits the health of all Americans.
Gene DeSantis is a resident of Kamas.
