The healthcare debate in America often circles back to a fundamental question: should we move toward a single-payer system, or is our current mixed public-private model the better path forward? It’s a conversation that gets heated quickly, but when you strip away the politics and look at how different systems actually function around the world, some interesting patterns emerge.
What We Mean by Single-Payer
A single-payer healthcare system means that one entity—usually the government or a government-related organization—pays for all covered healthcare services. Doctors and hospitals can still be private (and usually are), but instead of dealing with dozens of different insurance companies, they bill one source. It’s a lot like Medicare, which is why proponents often call it “Medicare-for-all”.
The key thing to understand is that single-payer isn’t necessarily the same as socialized medicine. In Canada’s system, for instance, the government pays the bills, but doctors are largely in the private sector and hospitals are controlled by private boards or regional health authorities rather than being part of the national government. Compare that to the UK’s National Health Service, where many hospitals and clinics are government-owned and many doctors are government employees.
America’s Current Patchwork
The United States operates what might charitably be called a “creative” approach to healthcare—a complex mix of employer-sponsored private insurance, government programs like Medicare, Medicaid and the VA system, individual marketplace plans, and direct out-of-pocket payments. Government already pays roughly half of total US health spending, but benefits, cost-sharing, and networks vary widely between plans, with little overall coordination. In 2023, private health insurance spending accounted for 30 percent of total national health expenditures, Medicare covered 21 percent, and Medicaid covered 18 percent. Most of the remainder was either paid out of pocket by private citizens or was written off by providers as uncollectible.
Here’s where it gets expensive. U.S. health care spending grew 7.5 percent in 2023, reaching $4.9 trillion or $14,570 per person, accounting for 17.6 percent of the nation’s GDP, and national health spending for 2024 is expected to have exceeded $5.3 trillion or 18% of GDP, and health spending is expected to grow to 20.3 percent of GDP by 2033.
For a typical American family, the costs are real and rising. In 2024, the estimated cost of healthcare for a family of four in an employer-sponsored health plan was $32,066.
The European Landscape
Europe doesn’t have one healthcare model—it has several, and they’re all quite different from what we have in the States. Most of the 35 countries in the European Union have single-payer healthcare systems, but the details vary considerably.
Countries like the UK, Sweden, and Norway operate what are essentially single-payer systems where it is solely the government who pays for and provides healthcare services and directly owns most facilities and employs most clinical and related staff with funds from tax contributions. Then you have countries like Germany, and Belgium that use “sickness funds”—these are non-profit funds that don’t market, cherry pick patients, set premiums or rates paid to providers, determine benefits, earn profits or have investors. They’re quasi-public institutions, not private insurance companies like we know them in America. Some systems, such as the Netherlands or Switzerland, rely on mandatory individually purchased private insurance with tight regulation and subsidies, achieving universal coverage with a structured, competitive market.
The French System
France is particularly noted for a successful universal, government-run health insurance system usually described as a single-payer with supplements. All legal residents are automatically covered through the national health insurance program, which is funded by payroll taxes and general taxation.
Most physicians and hospitals are private or nonprofit, not government employees or facilities. Patients generally have free choice of doctors and specialists, though coordinating through a primary care physician improves access and reimbursement. The national insurer pays a large portion of medical costs (often 70–80%), while voluntary private supplemental insurance covers most remaining out-of-pocket expenses such as copays and deductibles.
France is known for spending significantly less per capita than the United States. Cost controls come from nationally negotiated fee schedules and drug pricing rather than limits on access.
What’s striking is that in 2019, US healthcare spending reached $11,072 per person—over double the average of $5,505 across wealthy European nations. Yet despite spending roughly twice as much per person, American health outcomes often lag behind.
The Outcomes Question
This is where the comparison gets uncomfortable for American exceptionalism. The U.S. has the lowest life expectancy at birth among comparable wealthy nations, the highest death rates for avoidable or treatable conditions, and the highest maternal and infant mortality.
In 2023, life expectancy in comparable countries was 82.5 years, which is 4.1 years longer than in the U.S. Japan manages this with healthcare spending at just $5,300 per capita, while Americans spend more than double that amount.
Now, it’s important to note that healthcare systems don’t operate in a vacuum. Life expectancy is influenced by many factors beyond medical care—diet, exercise, smoking, gun violence, drug overdoses, and social determinants of health all play roles. But when you’re spending twice as much and getting worse results, it suggests the system itself might be part of the problem.
Advantages of Single-Payer Systems
The case for single-payer rests on several compelling points. First, administrative simplicity translates to real cost savings. A study found that the administrative burden of health care in the United States was 27 percent of all national health expenditures, with the excess administrative cost of the private insurer system estimated at about $471 billion in 2012 compared to a single-payer system like Canada’s. That’s over $1 out of every $5 of total healthcare spending just going to paperwork, billing disputes, and insurance company profit and overhead before any patient receives care.
Universal coverage is another major advantage. In a properly functioning single-payer system, nobody goes bankrupt from medical bills, nobody delays care because they can’t afford it, and nobody loses coverage when they lose their job. The peace of mind that comes with knowing you’re covered regardless of employment status or pre-existing conditions is difficult to quantify but enormously valuable.
Single-payer systems also have significant negotiating power. When one entity is buying drugs and services for an entire nation, pharmaceutical companies and medical device manufacturers have much less leverage to charge whatever they want. This helps explain why prescription drug prices in other countries are often a fraction of prices in the U.S.
Disadvantages and Trade-offs
The critics of single-payer systems aren’t wrong about everything. Wait times are a genuine concern in some systems. When prices and overall budgets are tightly controlled, some countries experience longer waits for selected elective surgeries, imaging, or specialty visits, especially if investment lags demand.
In 2024, Canadian patients experienced a median wait time of 30 weeks between specialty referral and first treatment, up from 27.2 weeks in 2023, with rural areas facing even longer delays. For procedures like elective orthopedic surgery, patients wait an average of 39 weeks in Canada.
However, it’s crucial to understand that wait times are not a result of the single-payer system itself but of system management, as wait times vary significantly across different single-payer and social insurance systems. Many European countries with universal coverage don’t experience the same wait time issues that plague Canada.
The transition costs are also substantial. Moving from our current system to single-payer would disrupt a massive industry. Over fifteen percent of our economy is related to health care, with half spent by the private sector. Around 160 million Americans currently have insurance through their employers, and transitioning all of them to a government-run plan would be an enormous administrative and political challenge.
A large national payer can be slower to change benefit designs or adopt new payment models; shifting political majorities can affect funding levels and benefit generosity.
Taxes would need to increase significantly to fund such a system, though proponents argue this would be offset by the elimination of insurance premiums, deductibles, and co-pays. It’s essentially a question of whether you’d rather pay through taxes or through premiums—the money has to come from somewhere.
Advantages of America’s Mixed System
Our current system does have some genuine strengths. Innovation thrives in the American healthcare market. The profit motive, for all its flaws, does drive pharmaceutical research and medical device development. American medical schools and research institutions lead the world in many areas of medicine. Academic medical centers and specialty hospitals deliver advanced procedures and complex care that attract patients internationally.
The system also offers more choice for those who can afford it. If you have good insurance, you typically face shorter wait times for elective procedures and can often see specialists without lengthy delays. Americans with high-quality employer-sponsored coverage give their plans relatively high ratings.
Competition between providers can theoretically drive quality improvements, though this effect is often undermined by the complexity of the market and the difficulty consumers face in shopping for healthcare.
Disadvantages of the Current U.S. System
The most glaring problem is simple: The United States remains the only developed country without universal healthcare, and 30 million Americans remain uninsured despite gains under the Affordable Care Act, and many of these gains will soon be lost. Being uninsured in America isn’t just an inconvenience—it can be deadly. People delay care, skip medications, and avoid preventive screenings because of cost concerns.
The administrative complexity is staggering. Doctors spend enormous amounts of time dealing with insurance companies, prior authorizations, and billing disputes. Hospitals employ armies of billing specialists just to navigate the maze of different insurance plans, each with its own rules, formularies, and coverage determinations. U.S. administrative costs account for ~25% of all healthcare spending, among the highest in the world.
Medical bankruptcy is uniquely American. Even people with insurance can find themselves financially devastated by serious illness. High deductibles, surprise bills, and out-of-network charges create a minefield of potential financial catastrophe. Studies of U.S. bankruptcy filings over the past two decades have consistently found that medical bills and medical problems are a major factor in a large share of consumer bankruptcies. Recent summaries suggest that roughly two‑thirds of US personal bankruptcies involve medical expenses or illness-related income loss, and around 17% of adults with health care debt report declaring bankruptcy or losing a home because of that debt.
The system is also profoundly inequitable. Quality of care often depends more on your job, your income, and your zip code than on your medical needs. Out-of-pocket costs per capita have increased as compared to previous decades and the burden falls disproportionately on those least able to afford it.
What Europe Shows Us
The European experience demonstrates that there isn’t one “right” way to achieve universal coverage. The UK’s NHS, Germany’s sickness funds, and France’s hybrid system all manage to cover everyone at roughly half the per-capita cost of American healthcare. Universal Health Coverage exists in all European countries, with healthcare financing almost universally government managed, either directly through taxation or semi-directly through mandated and government-subsidized social health insurance.
They’ve accomplished this through various combinations of centralized negotiation of drug prices, global budgets for hospitals, strong primary care systems that serve as gatekeepers to more expensive specialist care, emphasis on preventive services, and regulation that prevents insurance companies from cherry-picking healthy patients.
Are these systems perfect? No. One of the major disadvantages of centralized healthcare systems is long wait lists to access non-urgent care, though Americans often wait as long or longer for routine primary care appointments as do patients in most universal-coverage countries. Many European countries are wrestling with funding challenges as populations age and expensive new treatments become available. But they’ve solved the fundamental problem that America hasn’t: they ensure everyone has access to healthcare without the risk of financial ruin.
The Path Forward?
The debate over healthcare in America often presents false choices. We don’t have to choose between Canadian-style single-payer and our current system—there are multiple models we could adapt. We could move toward a German-style system with heavily regulated non-profit insurers. We could create a robust public option that competes with private insurance. We could expand Medicare gradually by lowering the eligibility age over time.
What’s clear from international comparisons is that the status quo is unusually expensive and produces mediocre results. We’re paying premium prices for economy outcomes. Whether single-payer is the answer depends partly on your priorities. Do you value universal coverage and cost control more than unlimited choice? Are you willing to accept potentially longer wait times for non-urgent care in exchange for lower costs and universal access? How much do you trust government to manage a program this large?
These aren’t easy questions, and reasonable people disagree. But the evidence from Europe suggests that universal coverage at reasonable cost is achievable—it just requires us to make some choices about what we value most in a healthcare system.
Sources:
- Centers for Medicare & Medicaid Services National Health Expenditure Data: https://www.cms.gov/data-research/statistics-trends-and-reports/national-health-expenditure-data/historical
- Commonwealth Fund international comparisons: https://www.commonwealthfund.org/publications/issue-briefs/2023/jan/us-health-care-global-perspective-2022
- Peterson-KFF Health System Tracker: https://www.healthsystemtracker.org/chart-collection/u-s-life-expectancy-compare-countries/
- Wikipedia overview of single-payer systems: https://en.wikipedia.org/wiki/Single-payer_healthcare
- Harvard Health discussion of single-payer: https://www.health.harvard.edu/blog/single-payer-healthcare-pluses-minuses-means-201606279835
- BMC study on administrative costs: Referenced in Wikipedia article on single-payer healthcare
- Fraser Institute wait times data: https://www.fraserinstitute.org/studies/waiting-your-turn-wait-times-for-health-care-in-canada-2024
- Healthcare systems comparison (European models): https://www.healthcare-now.org/euhealthcare/
The Price Tag Mystery: Why Nobody Really Knows What Healthcare Costs in America
By John Turley
On January 29, 2026
In Commentary, Medicine, Politics
Imagine walking into a store where nothing has a price tag. When you get to the register, the cashier scans your items and tells you the total—but that total is different for every customer. Your neighbor might pay $50 for the same items that cost you $200. The store won’t tell you why, and you won’t find out until after you’ve already “bought” everything.
Welcome to American healthcare, where the simple question “how much does this cost?” has no simple answer.
You might think I’m exaggerating, but the evidence suggests otherwise. Research published in late 2023 by PatientRightsAdvocate.org found that prices for the same medical procedure can vary by more than 10 times within a single hospital depending on which insurance plan you have, and by as much as 33 times across different hospitals. A knee replacement that costs around $23,170 in Baltimore might run $58,193 in New York. An emergency department visit that one facility charges $486 for might cost $3,549 at another hospital for the identical service.
The fundamental problem is that hospitals and doctors don’t have one price for their services. They have dozens, sometimes hundreds, of different prices for the exact same procedure depending on who’s paying. This bizarre system evolved because most healthcare in America isn’t a simple transaction between patient and provider—there’s a third party in the middle called an insurance company, and that changes everything.
The Fiction of Chargemaster Prices
A hospital chargemaster is essentially the hospital’s internal price list—a massive catalog that assigns a dollar amount to every service, supply, test, medication, and procedure the hospital can bill for, from an aspirin to a complex surgery. These listed prices are usually very high and are not what most patients actually pay; instead, the chargemaster functions as a starting point for negotiations with insurers and government programs like Medicare and Medicaid, which typically pay much lower, pre-set rates. What an individual patient ultimately pays depends on several factors layered on top of the chargemaster price. Think of them like the manufacturer’s suggested retail price on a car: technically real, but nobody pays them.
A hospital might list an MRI at $3,000 or a blood test at $500. But then insurance companies come in. They represent thousands or millions of potential patients, which gives them serious bargaining power. They negotiate with hospitals along these lines: “We’ll send you lots of patients, but only if you give us a discount.” So, the hospital agrees to accept much less—maybe they’ll take $1,200 for that $3,000 MRI or $150 for the blood test. This discounted amount is called the “negotiated rate,” and it’s what the insurance company will really pay.
Here’s where it gets messy: every insurance company negotiates its own rates with every hospital. Blue Cross might negotiate one price, Aetna a different price, UnitedHealthcare yet another. The same exact MRI at the same hospital might be $1,200 for one insurer’s customers and $1,800 for another’s. And these negotiated rates have traditionally been kept secret—treated like confidential business information that gives each party a competitive advantage.
The Write-Off Game
What happens to that difference between the chargemaster price and the negotiated rate? The hospital “writes it off.” That’s accounting language for “we accept that we’re not getting paid this money, and we’re taking it off the books.” If the hospital charged $3,000 but agreed to accept $1,200, they write off $1,800. This isn’t lost money in the normal sense—they never expected to collect it in the first place. The chargemaster prices are inflated specifically because everyone knows discounts are coming. Some hospitals now post “discounted cash prices” that are often far below chargemaster and sometimes even below some negotiated rates. These are sometimes, though not always, offered to uninsured patients, generally referred to as self-pay. There can be a catch—some hospitals require lump-sum payment of the total bill to qualify for the lower price.
According to the American Hospital Association, U.S. hospitals collectively plan to write off approximately $760 billion in billed charges in 2025 across all categories of write-offs. That’s not a typo—$760 billion. These write-offs happen in several different situations. The most common are contractual write-offs, where the provider has agreed to accept less than their list price from insurance companies.
Hospitals have far more write-offs than just contractual. They also write off money for charity care—treating patients who can’t afford to pay anything, and they write off bad debt when patients could pay but don’t. They write off small balances that aren’t worth the administrative cost of collection, and they write off amounts related to various billing errors, denied claims, and coverage disputes. Healthcare providers typically adjust about 10 to 12 percent of their gross revenue due to these various write-offs and claim adjustments.
Why Such Wild Variation?
Even with all these negotiated discounts built into the system, the prices still vary enormously. A 2024 study from the Baker Institute found that for emergency department visits, the price charged by hospitals in the top 10% can be three to seven times higher than the hospitals in the bottom 10% for the identical procedure. Research published in Health Affairs Scholar in early 2025 found that even after adjusting for differences between insurers and procedures, the top 25% of prices across all states is 48 percent higher than the bottom 25% of prices for inpatient services.
Several factors drive this variation. Hospitals in areas with less competition can charge more because insurers have fewer alternatives for negotiation. Prestigious hospitals can demand higher rates because insurers want them in their networks to attract customers. Some insurance companies have more bargaining power than others based on their market share. There’s no central authority setting prices—it’s all private negotiations, hospital by hospital, insurer by insurer, procedure by procedure.
For patients, this creates a nightmare scenario. Even if you have insurance, you usually have no idea what you’ll pay until after you’ve received care. Your out-of-pocket costs depend on your deductible (the amount you pay before insurance kicks in), your copay or coinsurance (your share after insurance starts paying), and whether the negotiated rate between your specific insurance and that specific hospital is high or low. Two people with different insurance plans getting the same procedure at the same hospital on the same day can end up with drastically different bills.
Research using new transparency data confirms this isn’t just anecdotal. A study from early 2025 found that for something as routine as a common office visit, mean prices ranged from $82 with Aetna to $115 with UnitedHealth. Within individual insurance companies, the price of the top 25% of office visits was 20 to 50 percent higher than the bottom 25%, meaning even within one insurer’s network, where you go or where you live makes a huge difference.
The Government Steps In
The federal government finally said “enough” and started requiring transparency. Since 2021, hospitals must post their prices online, including what they’ve negotiated with each insurance company. The Centers for Medicare and Medicaid Services (CMS) strengthened these requirements in 2024, mandating standardized formats and increasing enforcement. Health insurance plans face similar requirements to disclose their negotiated rates.
The theory was straightforward: if patients could see prices ahead of time, they could shop around, which would force prices down through competition. CMS estimated this could save as much as $80 billion by 2025. The idea seemed sound—transparency works in other markets, so why not healthcare?
In practice, it’s been messy. A Government Accountability Office (GAO) report from October 2024 found that while hospitals are posting data, stakeholders like health plans and employers have raised serious concerns about data quality. They’ve encountered inconsistent file formats, extremely complex pricing structures, and data that appears to be incomplete or possibly inaccurate. Even when hospitals post the required information, it’s often so convoluted that comparing prices across facilities becomes nearly impossible for average consumers.
An Office of Inspector General report from November 2024 found that not all selected hospitals were complying with the transparency requirements in the first place. And CMS still doesn’t have robust mechanisms to verify whether the data being posted is accurate and complete. The GAO recommended that CMS assess whether hospital pricing data are sufficiently complete and accurate to be usable, and to assess if additional enforcement if needed.
Imagine trying to comparison shop when one store lists prices in dollars, another in euros, and a third uses a proprietary currency they invented. That’s roughly where we are with healthcare price data—technically available, but practically unusable for most people trying to make informed decisions.
The Trump administration in 2025 signed a new executive order aimed at strengthening enforcement of price transparency rules and directing agencies to standardize and make hospital and insurer pricing information more accessible; this action built on rather than reduced the earlier requirements. Hopefully this will improve the ability of patients to access real costs, but it is my opinion that the industry will continue to resist full and open compliance.
The Limits of Shopping for Healthcare
There’s also a deeper philosophical problem: for healthcare to work like a normal market where price transparency drives competition, patients would need to be able to shop around based on price. That could work for scheduled procedures like knee replacements, colonoscopies, or elective surgeries. You have time to research, compare, and choose.
But it doesn’t work at all when you’re having a heart attack, or your child breaks their arm. You go to the nearest hospital, period. You’re not calling around asking about prices while someone’s having a medical emergency. Even for non-emergencies, choosing based on price assumes equal quality across providers, which isn’t always true and is even harder to assess than price itself.
A study on price transparency tools found mixed results on whether they truly reduce spending. Some research shows modest savings when people use price comparison tools for shoppable services like imaging and lab work. But utilization of these tools remains low, and for many healthcare encounters, price shopping simply isn’t practical or appropriate.
Who Really Knows?
So, who truly understands what things cost in this system? Hospital administrators know what different insurers pay them for specific procedures, but that knowledge is limited to their facility. They don’t necessarily know what other hospitals charge. Insurance company executives know what they’ve negotiated with various hospitals in their network, but they haven’t historically shared meaningful price information with their customers in advance. And they don’t know what their competitors have negotiated.
Patients, caught in the middle, often find out their costs only when they receive a bill weeks after treatment. By that point, the care has been delivered, and the financial damage is done. Recent surveys suggest that surprise medical bills remain a significant problem, with many patients receiving unexpected charges from out-of-network providers they didn’t choose or even know were involved in their care.
The people who are starting to get a comprehensive view are researchers and policymakers analyzing the newly available transparency data. Studies published in 2024 and 2025 using these data have given us unprecedented visibility into pricing patterns and variation. But this is aggregate, statistical knowledge—it helps us understand the system but doesn’t necessarily help individual patients figure out what they’ll pay for a specific procedure.
Where We Stand
The transparency regulations represent a genuine attempt to inject some market discipline into healthcare pricing. Making negotiated rates public breaks down the information asymmetry that has allowed prices to vary so wildly. In theory, if patients and employers can see that Hospital A charges twice what Hospital B does for the same procedure, competitive pressure should push prices toward the lower end.
There’s some early evidence this might be working. A study of children’s hospitals found that price variation for common imaging procedures decreased by about 19 percent between 2023 and 2024, though overall prices continued rising. Whether this trend will continue and expand to other types of facilities remains to be seen. I am concerned that rather than lowering overall prices it may cause hospitals at the lower end to raise their prices closer to those at the higher end.
Significant obstacles remain. The data quality issues need resolution before the information becomes truly usable. Many patients lack either the time, expertise, or practical ability to shop based on price. And the fundamental structure of American healthcare—with its complex interplay of providers, insurers, pharmacy benefit managers, and government programs—means that even perfect price transparency won’t create a simple, straightforward market.
So, to return to the original question: does anyone truly know the cost of medical care in the United States? In an aggregate sense, researchers and policymakers are starting to understand the patterns thanks to transparency requirements. The data are revealing just how variable and opaque pricing has been. But as a practical matter for individual patients trying to figure out what they’ll pay for needed care, not really. The information is becoming available but remains largely inaccessible or incomprehensible for ordinary people trying to make informed healthcare decisions.
The $760 billion in annual write-offs tells you everything you need to know: the posted prices are largely fictional, the negotiated prices vary wildly, and the system has evolved to be so complex that even the people operating within it struggle to understand the full picture. We’re making progress toward transparency, but we’re a long way from a healthcare system where patients can confidently get the answer to the simple question: “How much will this cost?”
A closing thought: All of this could be solved by development of a single-payer healthcare system such as I proposed in my previous post America’s Healthcare Paradox: Why We Pay Double and Get Less.