The United States spends more per person on health care than any other country in the world. Still, recent studies show that the United States ranks relatively low in the overall quality of health care provided. France is often described as providing its citizens with the globe’s best health care. Japan wins the distinction as having the world’s healthiest people. Although good at expensive care, like open-heart surgery, the U.S. healthcare delivery system is often described as poor at low-cost preventive care.
A. Explain the role of public and private insurance in making the demand for healthcare different from the demand for many other services.
B. Consumers buy healthcare to improve their health and wellbeing, but research suggests only a weak connection between healthcare spending and health. Explain why there might be only a weak link between healthcare expenditures and health.
C. Why is healthcare spending rising rapidly on a worldwide basis? Is robust growth in healthcare spending likely to continue?