Dec 21, 2024
The recent killing of UnitedHealthcare CEO Brian Thompson has sparked intense debate about the state of American healthcare and its impact on ordinary people.
Scott Galloway, professor of marketing at NYU Stern School of Business, says he’s been grappling with the system for decades because of his mother’s health issues.
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On a recent episode of the Pivot podcast, Galloway described how he rushed back home during his first year of graduate school because his mother was underinsured and discharged early from her second mastectomy.
“I walked into a situation, the likes of which I had never seen before and I could not handle,” he said. “Nurses were $35 an hour and our insurance couldn’t cover it. At that moment I thought, ‘No one can decide to be rich, but I’m going to work so f–king hard from this point forward.'"
He describes the incident as “the most frightening moment” of his life, which may have been avoided if America’s healthcare system was structured similarly to that of other developed countries.
Citizens over shareholders?
The United States is the only wealthy, developed nation without universal healthcare, relying primarily on private insurance and limited government programs like Medicare and Medicaid.
Most developed countries, such as Canada, the U.K., France and Germany, provide universal healthcare through various models. Canada has a single-payer system managed by individual provinces, while Germany and France offer a hybrid public-private model. Meanwhile, U.K. residents are offered government-provided healthcare through the National Health Service (NHS).
While some low-income nations also lack universal healthcare, the U.S. stands out among high-income countries for the size of its uninsured population. As of 2023, more than 26 million Americans — or roughly 8% of the population — were uninsured, according to the U.S. Census Bureau.
Whether you have insurance or not, healthcare costs can be prohibitive. According to the Kaiser Family Foundation, 1% of the country’s population has over $10,000 in medical debt. And 15% of U.S. households have some form of medical debt, according to the Marketplace Morning Report, which also claims healthcare related debt is the leading cause of bankruptcy in America.
Galloway says the root cause of the problem is that the healthcare system is designed to maximize shareholder returns instead of the wellbeing of consumers.
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“You want to talk about f–king with a young man’s sense of well-being when you can’t take care of your sick mother? Times that by 10 million, that is what has happened when you insert a profit motive into something as important as healthcare,” he said on the podcast.
Unfortunately, there is no major healthcare reform currently on the table. But there are several ways for families to manage and mitigate the costs of healthcare.
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Managing your healthcare costs
Depending on your situation, there could be several ways to reduce your overall healthcare costs.
The first step is to pick the right insurance plan. Compare employer-sponsored plans, the Affordable Care Act (ACA) marketplace and private plans to find the best coverage for your needs. And once you’re covered, try to stay within your network and use doctors, hospitals and pharmacies that are covered under your insurance plan.
If you’re young and healthy, you can consider a high-deductible health plan (HDHP), which could lower your monthly premium. You could also prioritize preventive care like free annual screening tests and vaccinations and adopt healthy habits to avoid costly medical issues.
When or if you need prescriptions, you can ask for the generic drug brand to save on medications and use price comparison tools like GoodRx or patient assistance programs to make your treatment more affordable. You can also seek financial aid from hospitals, community clinics or government programs like Medicaid if you’re eligible.
Finally, if you’re looking for a new job or considering a career switch, keep a close eye on the medical benefits offered by your potential employer.
These steps can reduce costs and potentially increase your access to adequate healthcare, despite the limitations of America’s unique medical system.
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
