The proportion of healthcare services purchased through insurance has increased significantly over the past century, thanks to tax exemptions for employer-sponsored benefits. This has led to a surge in spending on treatment, as consumers are insulated from the cost of services. However, making patients bear more of their costs out of pocket is not an effective way to reduce wasteful healthcare spending. Instead, it can inhibit access to care, particularly for the seriously ill, who account for a large proportion of healthcare spending.<\/p>\n
The current system, where patients have little control over the purchase of healthcare, has shifted control to bureaucrats and insurers. Critics argue that this arrangement deprives individuals of access to their preferred doctors and drugs, and displaces a personalized patient-clinician relationship with “checkbox medicine” preoccupied with reimbursement and regulatory compliance.<\/p>\n
Advocates of “direct payment” for medical care propose cutting out the middleman and relying on cash payment for services. However, this approach is unlikely to be effective, as patients may not have the incentive or resources to shop around for the best-priced medical care. Moreover, high deductibles have been shown to reduce the utilization of medical services, rather than steering patients to cheaper sources of treatment.<\/p>\n
The federal government’s attempt to finance healthcare by distributing cash uniformly to Americans is likely to accumulate funds in the hands of those who need assistance least. The heaviest healthcare costs are typically incurred by households that have high utilizers of medical care, who use more than average year after year.<\/p>\n
Some forms of insurance, such as fixed indemnity health insurance, may facilitate the direct purchase of medical care by patients. However, the appeal of such plans is likely to be limited, as they may leave patients unable to pay for treatment, particularly if their cases involve costly complications.<\/p>\n
Ultimately, improving the healthcare system requires making insurance more responsive to patients’ concerns. Allowing employers to provide pretax funds for their employees to purchase their own insurance can enable individuals to opt for more cost-effective plans that better suit their personal health needs and circumstances. This approach can reduce the largest hospital and drug expenses, rather than just shifting the burden of paying for them onto the seriously ill.<\/p>\n
It is also important to note that Americans typically want health insurers to cover more, not less. A large majority of adults want insurance to pay for weight loss drugs, medical services without prior authorization, and to limit surprise medical bills. Therefore, improving the healthcare system requires a nuanced approach that takes into account the complexities of the current system and the needs and preferences of patients.<\/p>\n","protected":false},"excerpt":{"rendered":"
The proportion of healthcare services purchased through insurance has increased significantly over the past century, thanks to tax exemptions for employer-sponsored benefits. This has led to a surge in spending on treatment, as consumers are insulated from the cost of services. However, making patients bear more of their costs out of pocket is not an […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,22],"tags":[],"class_list":["post-222511","post","type-post","status-publish","format-standard","hentry","category-care","category-insurance"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9ibIB-VST","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":222681,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/15\/massachusetts-health-insurance-prior-authorizations-to-face-restrictions-according-to-healey\/","url_meta":{"origin":222511,"position":0},"title":"Massachusetts health insurance prior authorizations to face restrictions, according to Healey.","author":"Team Small News","date":"January 15, 2026","format":false,"excerpt":"Massachusetts Governor Maura Healey has announced a comprehensive plan to make healthcare more affordable and accessible to residents. The plan includes updated insurance regulations that will eliminate prior authorization requirements for emergency and urgent care services, primary care, chronic care, occupational and physical therapy, and certain prescription drugs. Prior authorization\u2026","rel":"","context":"In "Care"","block_context":{"text":"Care","link":"https:\/\/smallnews.in\/insurance\/category\/care\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222755,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/29\/honolulu-doctors-are-now-opting-out-of-the-traditional-healthcare-system-choosing-not-to-accept-health-insurance-and-instead-are-directly-billing-patients-for-their-services\/","url_meta":{"origin":222511,"position":1},"title":"Honolulu doctors are now opting out of the traditional healthcare system, choosing not to accept health insurance and instead, are directly billing patients for their services.","author":"Team Small News","date":"January 29, 2026","format":false,"excerpt":"A father-daughter medical practice in Honolulu is revolutionizing the way they provide healthcare by cutting out the middle man - health insurance companies. Dr. Curtis Takemoto-Gentile and his daughter Dr. Krishanna Takemoto-Gentile have adopted a direct primary care model, where patients pay a monthly fee for better access to the\u2026","rel":"","context":"In "Care"","block_context":{"text":"Care","link":"https:\/\/smallnews.in\/insurance\/category\/care\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222774,"url":"https:\/\/smallnews.in\/insurance\/2026\/02\/09\/the-rising-cost-of-health-care-is-a-complex-issue-with-multiple-contributing-factors-some-of-the-key-reasons-includeadvancements-in-medical-technology-new-treatments-medications-and-equipment\/","url_meta":{"origin":222511,"position":2},"title":"The rising cost of health care is a complex issue with multiple contributing factors. Some of the key reasons include:\n\n\nAdvancements in Medical Technology: New treatments, medications, and equipment are continually being developed, which can drive up costs. These advancements often come with a high price tag, contributing to increased healthcare expenditures.\n\n\nAging Population: As the population ages, there is a greater demand for health care services. Older adults typically require more medical care due to age-related health issues, leading to higher costs.\n\n\nChronic Diseases: The prevalence of chronic diseases such as diabetes, heart disease, and obesity has increased. Managing these conditions often requires ongoing, costly treatments and medications.\n\n\nAdministrative Costs: The healthcare system involves a significant amount of administrative work, including billing, insurance claims, and regulatory compliance. These tasks are costly and contribute to the overall expense of healthcare.\n\n\nPharmaceutical Prices: The cost of prescription medications has risen significantly. New and innovative drugs, especially those for rare or complex conditions, can be very expensive.\n\n\nDefensive Medicine: To avoid potential lawsuits, healthcare providers may order additional tests or procedures, which can drive up costs without necessarily improving patient outcomes.\n\n\nInsurance and Payment Systems: The way healthcare is financed, including insurance premiums, deductibles, and copays, can make it inaccessible or unaffordable for many people, affecting the overall cost landscape.\n\n\nHospital and Healthcare Facility Costs: The cost of maintaining and operating hospitals and other healthcare facilities, including staff salaries, equipment, and supplies, contributes to the overall expense of healthcare.\n\n\nRegulatory Compliance: Healthcare providers must comply with a myriad of regulations, which can be costly in terms of time, personnel, and resources.\n\n\nLack of Transparency and Competition: In some areas, limited competition among healthcare providers and a lack of price transparency can lead to higher costs, as consumers may not be able to make informed decisions based on price and quality.","author":"Team Small News","date":"February 9, 2026","format":false,"excerpt":"The rising cost of health insurance in the United States is a pressing concern, with premiums for employer-sponsored insurance expected to increase by 9% in 2026. Public spending on Medicare, Medicaid, and Obamacare is also surging. However, this increase is not due to excessive profits among insurers or hospitals, but\u2026","rel":"","context":"In "Care"","block_context":{"text":"Care","link":"https:\/\/smallnews.in\/insurance\/category\/care\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222711,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/21\/international-comparison-of-health-systemsthe-performance-of-healthcare-systems-varies-significantly-across-countries-factors-such-as-access-to-care-quality-of-care-and-health-outcomes-are-often-u\/","url_meta":{"origin":222511,"position":3},"title":"International Comparison of Health Systems\nThe performance of healthcare systems varies significantly across countries. Factors such as access to care, quality of care, and health outcomes are often used to compare health systems internationally.\nKey Indicators:\n\nLife Expectancy: Average number of years a person is expected to live.\nInfant Mortality Rate: Number of deaths per 1,000 live births.\nMortality Amenable to Healthcare: Deaths from conditions that are treatable with timely and effective healthcare.\nPatient Satisfaction: Patients’ perceived quality of care and satisfaction with healthcare services.\nHealthcare Spending: Percentage of GDP spent on healthcare.\n\nCountry Comparison:\n\nUnited States:\nHigh healthcare spending (17.1% of GDP)\nAverage life expectancy (78.7 years)\nHigh infant mortality rate (5.8 per 1,000 live births)\n\n\nCanada:\nUniversal healthcare system\nLower healthcare spending (10.4% of GDP)\nHigher life expectancy (81.9 years)\nLower infant mortality rate (4.5 per 1,000 live births)\n\n\nUnited Kingdom:\nNational Health Service (NHS) provides universal coverage\nLower healthcare spending (9.8% of GDP)\nHigher life expectancy (80.7 years)\nLower infant mortality rate (3.9 per 1,000 live births)\n\n\nAustralia:\nMixed public-private healthcare system\nHigher healthcare spending (9.5% of GDP)\nHigher life expectancy (82.5 years)\nLower infant mortality rate (3.2 per 1,000 live births)\n\n\nJapan:\nUniversal healthcare system\nHigh life expectancy (84.7 years)\nLow infant mortality rate (2.1 per 1,000 live births)\nHigh healthcare spending (11.4% of GDP)\n\n\n\nCommon Challenges:\n\nAging Populations: Increasing demand for healthcare services.\nRising Healthcare Costs: Balancing quality and affordability.\nHealth Inequalities: Disparities in access to care and health outcomes.\nWorkforce Shortages: Attracting and retaining healthcare professionals.\n\nBest Practices:\n\nPrimary Care: Emphasizing preventive care and community-based services.\nIntegrated Care: Coordinating care across settings and providers.\nPatient-Centered Care: Focusing on patient needs and preferences.\nInnovative Technologies: Leveraging digital health and data analytics to improve care.","author":"Team Small News","date":"January 21, 2026","format":false,"excerpt":"The United States spends significantly more on healthcare per person compared to other high-income countries. In 2020, the US spent 19.5% of its GDP on healthcare, which is substantially higher than other peer countries. This gap has been widening over the past five decades, with the US spending about 7%\u2026","rel":"","context":"In "Care"","block_context":{"text":"Care","link":"https:\/\/smallnews.in\/insurance\/category\/care\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222722,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/23\/lowering-prices-may-not-be-enough-to-reduce-healthcare-expenditures\/","url_meta":{"origin":222511,"position":4},"title":"Lowering prices may not be enough to reduce healthcare expenditures.","author":"Team Small News","date":"January 23, 2026","format":false,"excerpt":"The Centers for Medicare & Medicaid Services (CMS) has released the 2024 National Health Expenditure (NHE) report, which shows that US health spending grew 7.2% to $5.3 trillion, accounting for 18.0% of the country's gross domestic product. This increase has led to concerns that healthcare is too expensive and that\u2026","rel":"","context":"In "Care"","block_context":{"text":"Care","link":"https:\/\/smallnews.in\/insurance\/category\/care\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222487,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/23\/iowa-doctor-addresses-rising-health-insurance-costs-and-physician-shortages-kcci\/","url_meta":{"origin":222511,"position":5},"title":"Iowa doctor addresses rising health insurance costs and physician shortages – KCCI","author":"Team Small News","date":"December 23, 2025","format":false,"excerpt":"A recent report by KCCI highlights the concerns of a Iowa doctor regarding the rising health insurance costs and physician shortages in the state. The doctor, who wishes to remain anonymous, expressed frustration with the current healthcare system, stating that it is becoming increasingly difficult for patients to access affordable\u2026","rel":"","context":"In "Care"","block_context":{"text":"Care","link":"https:\/\/smallnews.in\/insurance\/category\/care\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/posts\/222511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/comments?post=222511"}],"version-history":[{"count":0,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/posts\/222511\/revisions"}],"wp:attachment":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/media?parent=222511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/categories?post=222511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/tags?post=222511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}