There are numerous reasons why the US healthcare system is so expensive. Some are pretty upfront, while others are behind-the-door, under-the-rug stuff.

First, talking about the numbers, an average American spends almost the double on health as compared to people in other wealthy nations.

Now, before anything, understand that private hospitals are into doing business; at least the majority. They are here to make profit. And this is true across the world.

(Courtesy: pbs.org)

• So, when the government sets an upper limit to a procedure, these hospitals try to charge as high as possible to maximize their returns from every patient. This increases the insurance claims, which then leads insurance companies to raise their premium and deductibles, as well as cut down their coverage. In the end, the patients end up spending more on their healthcare.

• Many healthcare professionals order patients unnecessary tests in the name of diagnosis. Even in treatment, they are rather defensive, offering solutions that the patient might not even require in the first place. This adds to the cost.

• The cost of medicines in the USA is relatively high. In fact, per capita spending on pharmaceuticals here is almost double the amount in many developed countries. This is why 8 percent of the population imports medicines from different nations, which helps them save as much as 56 percent. This comes due to weak regulations around drug price.

In essence, to a large extent, what you see are cons of capitalism in the US healthcare system. If corporates aren’t making more money, why would they even be in this segment? So, they charge more; charge more to afford the expenses; charge more to pay for the lawsuits against the hospital and doctor, which is prevalent in cases of misdiagnosis and improper treatment; charge more, most importantly, to make more profit and become richer.

(Courtesy: The New York Times)

That all said, however, it’s also worth noting that when you’re getting treated in the best facilities and by the best healthcare professionals, you will have to pay more.

Almost every good hospital in the USA packs advanced and latest equipment and overall infrastructure. It costs money.

The establishments there invest a lot in research around healthcare. This has a cost too.

Similarly, the doctors, support staff, and other professionals – they are highly qualified. They are specialized. In fact, the USA has the highest percentage of specialists compared to other wealthy countries.

So, naturally, they have to be paid well and adequately. This gets passed on to the patients’ bill. (For this same reason why the USA is one of the best countries to be a healthcare professional. On average, while a specialist gets $350,000 a year, a GP gets $242,400.)

(Courtesy: Business Insider)

So, as I said earlier, there are many reasons that make the US healthcare system so experience; some reasons are upfront and justified, others are behind-the-door stuff.

Hope this answer gives you a basic idea.