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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Personal Finance / Macroeconomic Trends & Risks
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Author: albaby1 SILVER
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Number: of 4460 
Subject: Re: Witnessing the end of Europe's welfare state_
Date: 10/20/25 2:56 PM
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Regarding the high costs of health care in the USA, one area I haven't yet seen mentioned in this thread is the legal expenses doctors and hospitals face due to malpractice legislation. The insurance costs are high, but maybe even higher are the additional testing that is done to build a defense against malpractice into the actual processes practiced.

As with the other costs mentioned, this probably also falls into the "real, but tiny relative to overall expenses" bucket. Estimates of the cost of the medical liability system that include defensive medicine vary, given the difficulty of direct measurement - but they seem to be around $45 billion, give or take a few billion:

pmc.ncbi.nlm.nih.gov: The Cost of Defensive Medicine on Three Hospital Medicine Services

Again, in absolute terms that's a lot of money. But in relative terms, out of a $4,900 billion annual spend, it's less than a single percentage point.

There's no easy fix. There's no big pot of "waste, fraud and abuse" that can be trimmed without hitting millions of health care workers in their rice bowl. Other countries have lower health care costs because their national governments hold a monopoly (okay, a monopsony) on health care spending and are therefore able to squeeze all of the providers and make them provide medical services for a lot less money than they could if there was competition for their services.

That's why we don't have single-payer here, even at the state level. If the government doesn't squeeze the providers, it's too expensive to convert (which is why all the past efforts, as in Vermont, collapsed over money). If the government does squeeze providers, the political outcry would be through the roof.
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