Question

Why does the United States spend an ever-growing portion of its resources on medical services, although they are less cost-effective than other methods in improving health status?

Answer 1

This is because the spending on healthcare and medical services are not dependent on the need for such services but on the ability of the individuals and the government to pay for them. US has the highest per capita income and highest GDP which implies that even when it is spending 8% of its GDP on health it turns out to be a large amount. Poor nations who need greater healthcare are not spending that much on health not because they do not need healthcare but because they do not have enough resources.

Secondly US medical services are complex with huge amount being spent on health insurance, medical research branded drugs which makes the healthcare expense too high for international comparison. Per capita spending on healthcare is around $8000.