American Health Care System Facts

Free Market

• As health care in the U.S. is available in a free market context, individuals are able to choose their own medical providers, hospitals and other axillary services. The U.S. government does not provide any type of universal health care, although many residents are covered by the federal government's Medicare and Medicaid programs, which provide medical insurance for the elderly and individuals living in property.
  
  

Governmental Regulation

• The government is responsible for overseeing the regulation of many health care services and products. The Federal Food and Drug Administration (FDA), for example, supervises the process of drug development and testing to assure that pharmaceuticals adhere to specified levels of efficacy and safety. New drugs may not be released into the market until approved by the FDA.
  
  

Private Regulation

• Private regulation of health care is even more extensive than government oversight, and is enacted by a number of private bodies. The American Medical Association (AMA) is responsible for the creation of several organizations that provide doctor certification and testing, and accreditation for specialists. In addition, medical schools must be accredited by the Association of American Medical Colleges (AAMC).
  
  

Costs

• Residents of the U.S. spend more than two times the amount of money on health care services than residents of any other industrialized country. In 2008, this translated to an average yearly expenditure of more than $7,000 per person, according to the National Center for Health Statistics. There are multiple reasons for the higher cost of health care, including access to more advanced technology, heightened administrative costs and the cost added to hospital services to help cover care for those unable to pay.
  
  

Insurance

• According to the National Center for Health Statistics, 36 percent of health care costs in the U.S. are paid by insurance companies. Medical insurance pays for a portion of health care costs incurred according to an agreed-upon payment schedule, and provide protection from the unexpected costs of a catastrophic emergency. Many employers provide medical insurance as a benefit to their employees by paying all or part of their premium. More than 43 million Americans, however, do not have any type of medical insurance, and must pay for all medical expenses out of pocket.
  
  

2010 Legislation

• On March 23r, 2010, President Barack Obama signed into law an extensive health care reform bill designed to provide affordable insurance coverage options for all American citizens, and improve the delivery of services that are already offered through Medicare and Medicaid. The bill passed only after heated debate, and concerns that health care would become nationalized. Health care reform legislation provides subsidies to help lower-income individuals purchase insurance, requires insurance companies to accept people with pre-existing medical conditions and mandates that employers of more than 50 workers offer health insurance benefits.