- Federal Reserve chairman Jerome Powell said at a hearing in the Senate on Wednesday that Americans "get nothing" in return for what the United States spends on health care.
- "The results are perfectly average for a First World nation, but we spend 6 to 7% of GDP more than in other countries. So it's about delivery. That's a lot of money that you spend effectively and get nothing." , he said .
- studies have specified that the US spends a lot more on healthcare than other industrialized countries just to get worse results.
- A study published in a medical journal last year estimates that nearly a quarter of the $ 3.6 trillion in healthcare spending is wasteful.
- Further information can be found on the Business Insider homepage.
The United States is one of the top financiers of health care for its citizens, but they have very little to show, Federal Reserve chairman Jerome Powell said on Wednesday.
Powell made the brutal comments during a hearing by the Senate Banking Committee on monetary policy.
Republican Senator Ben Sasse of Nebraska asked the Fed chair to weigh the impact of American health care spending on the economy, and Powell replied that the US is spending far more without showing much.
"The results are perfectly average for a First World nation, but we spend 6 to 7% of GDP more than in other countries. So it's about delivery. That's a lot of money that you spend effectively and get nothing." , he said .
The Fed chair added that industrialized countries were far less successful in delivering quality health care.
"It's not that these benefits are fabulously generous; they're exactly what people in Western economies get," Powell said.
It is not the first time that Powell has weighed on the rise in US healthcare prices. In a 2018 interview with Yahoo News, he warned it could hurt the country's economy in the future.
"It is no secret: It has long been true that with our uniquely expensive health system and the aging of our population, we have long been on an unsustainable fiscal path," said the Fed chairman.
The United States spends approximately $ 10,227 per person on healthcare, twice as much as in other developed countries. according to the non-partisan Kaiser family foundation, But it ranks bad health outcomes, particularly child mortality and deaths from preventable causes under 75 years of age.
A study published last year in the Journal of the American Medical Association estimated that almost a quarter of this expenditure – up to $ 935 billion a year – is wasteful since the failure to provide and coordinate care is the bulk of poorly managed health care expenditure of the country.