--- title: Healthcare Costs are Climbing, Here's Why description: Taking a deeper dive into what makes healthcare expensive. image: https://go.thekarisgroup.com/hubfs/Blog%20image.png --- [![KarisGroup-PH_Logo@2x](https://go.thekarisgroup.com/hs-fs/hubfs/KarisGroup-PH_Logo@2x.png?width=406&height=189&name=KarisGroup-PH_Logo@2x.png "KarisGroup-PH_Logo@2x")](http://pointhealthtech.com) - Who we serve - [Resources](https://go.thekarisgroup.com/resources) - [Blog](https://go.thekarisgroup.com/blog) - [Case Studies](https://go.thekarisgroup.com/resources#case-studies) - [Reports](https://go.thekarisgroup.com/resources#reports) - [Videos](https://go.thekarisgroup.com/resources#videos) - [Webinars](https://go.thekarisgroup.com/resources#webinars) - [Podcasts](https://go.thekarisgroup.com/resources#podcasts) - Members [![Contact Us](https://no-cache.hubspot.com/cta/default/5334710/364489f8-ffc5-4a99-8ea8-c5d426f6c27b.png)](https://cta-redirect.hubspot.com/cta/redirect/5334710/364489f8-ffc5-4a99-8ea8-c5d426f6c27b) Content Title Description < Previous page Next page > In these case studies, you'll find key data about the effectiveness of our services with real clients using our services. Whether you need a study on patient advocacy or a breakdown on the benefits of digital healthcare experience, these reports will give you actionable and inspiring insights. Our short videos will show you real patient testimonies and give you a look inside who we are and how we help people affordable health care. All our webinars are completely free to watch and are full of valuable tips from industry leaders spearheading the movement of great care at a fair price for all people. No time to read a blog or watch a webinar? Listen to our podcasts ranging from think pieces about patient advocacy, to data findings about benefits, and more. ![](https://go.thekarisgroup.com/hubfs/Blog%20image.png) ![podcasts](https://go.thekarisgroup.com/hubfs/KG_Sep_2019/events_assets/icon-05.png) [Podcasts](https://go.thekarisgroup.com/resources/tag/podcasts) # Healthcare Costs are Climbing, Here's Why February 26, 2020   For as long as any of us can remember, the natural thing to do when the flu or a nasty cold hits is to go visit a doctor or get checked at a hospital. However, according to a [CNBC report](https://www.cnbc.com/2018/11/29/over-half-of-americans-delay-health-care-becasue-they-cant-afford-it.html), today, the majority of the population delays seeking out medical care due to the high price tag that comes along with it. With this in mind, let's take a closer look at why healthcare is often a luxury for millions of Americans. ### **How Much Do Americans Spend on Healthcare?** The average working-class American will tell you that living expenses aren't cheap, especially their healthcare. From prescription medication to hospital bills, the high prices of healthcare services are a tough pill to swallow for most of the population. A report from the [Centers for Medicare and Medicaid Services](https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-reports/nationalhealthexpenddata/nhe-fact-sheet) shows that the average amount for healthcare spending is $11,172 per person — an amount that's one-third of the income per capita of $33,706. So what healthcare services are the average Americans allocating their money to? General check-ups can cost hundreds. Spending on prescription medication can rack up to over $20,000 a year. If you find yourself in a medical emergency, a visit to the hospital ER could cost you tens of thousands of dollars. The average American shells out anywhere from $7,188 for single coverage and $20,576 for family coverage according to a recent [Kaiser Family Foundation study](https://www.kff.org/report-section/ehbs-2019-section-1-cost-of-health-insurance/). These numbers are outrageous, and they’re only expected to climb from here. ### **Why Are Healthcare Prices so High?** One of the biggest contributors to the country's expensive healthcare system is the administrative costs.  A study published in the [Annals of Internal Medicine Journal](https://time.com/5759972/health-care-administrative-costs/) points out that administrative costs alone take up 34% of total healthcare payments. Moreover, America's administrative costs are higher than any other country's — they amount to $2,497 per person in the U.S., but only $551 in Canada. Another factor increasing the cost of healthcare is the decreasing amount of healthcare professionals. An issue so prominent, that even Congress has tried to find solutions with little success. A recent study by the Association of American Medical Colleges revealed that the country will experience a shortage in primary care physicians of up to 122,000 physicians by 2032, which will have the greatest impact in rural and inner-city communities. The shortage of healthcare professionals will lead to longer waiting times and increased healthcare expenses for patients. Healthcare costs are also being driven up by the astronomical prices of prescription medication. [A vial of insulin is priced at $320 per vial in America](https://www.reuters.com/article/us-canada-health-insulin/american-caravan-arrives-in-canadian-birthplace-of-insulin-for-cheaper-medicine-idUSKCN1TU0T4), but just $30 in Canada. Unlike other countries, national health programs don't get to decide drug prices, instead, Congress lets pharmaceutical companies dictate the costs — which often leads to them choosing what's in the best interest for the company, not the patient. Despite the extremely high prices of healthcare services, [studies](https://www.newsweek.com/united-states-health-care-rated-worst-637114) have shown that America has one of the worst healthcare systems among developed countries. Not only are we paying a higher price, but we’re also not receiving the best care. These unaffordable costs and less than stellar results outlined above have disincentivized the average American from seeking medical care, only exacerbating the problems. This is why we are committed to improving the patient’s experience and educating our members to become engaged healthcare consumers so next time they or a loved one pick up that nasty cold, they’ll know where to turn and how to receive the care needed at an affordable price. --- ### *If you are struggling with the impact that the rising cost of healthcare is having on your company, watch our recent* [*webinar*](https://go.thekarisgroup.com/the-karis-group-cost-containment-webinar-1) *on practical cost-containment strategies to help reduce costs or* [*contact us*](https://www.thekarisgroup.com/contact) *to find out how we can help!*     #### Resources ![podcasts](https://go.thekarisgroup.com/hubfs/KG_Sep_2019/events_assets/icon-05.png) [Podcasts \[03\]](https://go.thekarisgroup.com/resources/topic/podcasts) ![webinars](https://go.thekarisgroup.com/hubfs/KG_Sep_2019/events_assets/icon-04.png) [Webinars \[03\]](https://go.thekarisgroup.com/resources/topic/webinars) ![case-study](https://go.thekarisgroup.com/hubfs/KG_Sep_2019/events_assets/icon-01.png) [Case Studies \[02\]](https://go.thekarisgroup.com/resources/topic/case-studies) ![reports](https://go.thekarisgroup.com/hubfs/KG_Sep_2019/events_assets/icon-02.png) [Reports \[01\]](https://go.thekarisgroup.com/resources/topic/reports) ![videos](https://go.thekarisgroup.com/hubfs/KG_Sep_2019/events_assets/icon-03.png) [Videos \[01\]](https://go.thekarisgroup.com/resources/topic/videos) ![](https://go.thekarisgroup.com/hubfs/Broker%20Graph.png) Previous Post ##### [We Asked, You Answered: Health Benefits Your Clients Actually Want](https://go.thekarisgroup.com/resources/podcast-we-asked-you-answered-benefits-your-clients-actually-want) ![](https://go.thekarisgroup.com/hubfs/Kim%20%26%20Marty%20(2).jpg) Next Post ##### [FMMA Speaker Series Recap: Dr. Marty Makary](https://go.thekarisgroup.com/resources/podcast-fmma-speaker-series-recap) ## Get our latest news right in your mailbox Subscribe to our newsletter [![KarisGroup-PH_Logo@2x-1](https://go.thekarisgroup.com/hs-fs/hubfs/KarisGroup-PH_Logo@2x-1.png?width=203&height=94&name=KarisGroup-PH_Logo@2x-1.png "KarisGroup-PH_Logo@2x-1")](http://pointhealthtech.com) Healthcare is a mess...  We guide our members to medical cost savings through proactive education, healthcare navigation, and expanded access to quality care. ##### Stay up to date with the latest in health care cost containment! ### Subscribe to our newsletter to receive the latest news right in your mailbox (we'll never share your email without your permission). © 2026 **The Karis Group** · [Privacy Policy](https://www.thekarisgroup.com/privacy) · [Terms of Use](https://www.thekarisgroup.com/terms) - - -