Why Is US Healthcare the Most Expensive and Low-Quality in the World—and Can Trump’s Team Fix It?

By TheMors Journalists | March 7, 2025

The United States spends more on healthcare than any other country—about $4.5 trillion in 2023 alone, or roughly $13,000 per person, according to the Centers for Medicare & Medicaid Services. Yet, despite this massive investment, Americans often get less bang for their buck compared to other developed nations. Life expectancy lags behind countries like Japan and Switzerland, and chronic conditions like diabetes and heart disease remain stubbornly high. So, why are US healthcare costs so astronomical while quality stays subpar? And with Donald Trump back in the White House as of 2025, can his team turn things around? Let’s break it down. This article, prepared by journalists at TheMors, digs into the reasons behind this mess and explores what Trump’s administration might do about it.

The Price Tag Problem: Why US Healthcare Costs Are Sky-High

First, let’s talk money. The US outspends every other wealthy nation on healthcare by a long shot. The Organization for Economic Cooperation and Development (OECD) reports that America’s healthcare spending is nearly double the average of other high-income countries—17% of GDP versus 9% elsewhere. But what drives these jaw-dropping numbers?

Administrative Overload

One big culprit is the sheer complexity of the system. Unlike countries with single-payer models, like the UK or Canada, the US relies on a patchwork of private insurers, government programs like Medicare and Medicaid, and out-of-pocket payments. This mess creates a mountain of paperwork. A 2021 study in Health Affairs found that administrative costs account for about 25% of total US healthcare spending—hundreds of billions annually. Hospitals and doctors need armies of staff just to handle billing, coding, and insurance disputes. Compare that to Canada, where admin costs hover around 12%, and you see why US medical expenses pile up fast.

Skyrocketing Drug Prices

Prescription drugs are another budget-buster. Americans pay way more for meds than anyone else. Take insulin: a vial costing $300 in the US might go for $30 in Canada. Why? Pharmaceutical companies face little price regulation here. Other countries negotiate directly with drugmakers, but in the US, Medicare—the biggest buyer—wasn’t allowed to haggle until the 2022 Inflation Reduction Act (IRA) changed that. Even so, the Kaiser Family Foundation (KFF) notes that drug prices remain 2-4 times higher than in Europe, fueling those notorious US healthcare costs.

Hospital Bills That Break the Bank

Then there’s hospital care. A hip replacement in the US averages $28,000, while it’s $16,000 in New Zealand, per the Health Care Cost Institute. Why the gap? Hospitals charge what the market will bear, and with little transparency or competition, prices soar. Add in for-profit hospitals and pricey tech like MRI machines, and you’ve got a recipe for sticker shock.

Quality Concerns: Why More Money Doesn’t Mean Better Care

If the US is spending so much, shouldn’t it have the best healthcare quality? Not quite. The Commonwealth Fund ranks the US last among 11 high-income nations for overall performance, citing poor access, outcomes, and equity. Life expectancy sits at 77 years—five years below Japan’s—while infant mortality is double that of countries like Sweden. What’s going wrong?

Access Gaps

Even with all that spending, millions can’t get care. About 26 million Americans were uninsured in 2023, per KFF, and many more are underinsured, facing high deductibles or copays. In contrast, countries like Germany guarantee universal coverage, so people don’t skip doctor visits over cost. In the US, one in four adults delays care because of money, says a 2024 KFF poll. That leads to worse health down the line.

Fragmented System, Fragmented Results

The lack of a unified system also hurts. Patients bounce between specialists, insurers, and providers with little coordination. A 2022 JAMA study found that preventable deaths—like from untreated heart conditions—are higher here than in peer nations. Without a central plan, care gets patchy, and quality suffers.

Can Trump’s Team Change the Game?

Donald Trump took office in January 2025 promising to tackle healthcare costs and improve access. During his first term, he pushed price transparency rules, slashed some drug prices, and tried (but failed) to repeal the Affordable Care Act (ACA). Now, with a Republican-led Congress and a second shot, what might his team do? Here’s what we’ve gathered at TheMors.

Transparency Push: Round Two

Trump’s first term saw big moves on price transparency. Hospitals now have to post their rates online, and insurers must follow suit. A 2024 study by Turquoise Health showed top-tier service prices dropped 6.3% annually since 2021—an early win. In 2025, Trump’s signed an executive order to enforce these rules harder, targeting drug prices too. The idea? If patients can shop around, competition might drive costs down. But experts like Gerard Anderson from Johns Hopkins argue it’s not enough—most people don’t “shop” when they’re sick, and the data’s still hard to use.

ACA Subsidies and Reforms

The ACA’s enhanced subsidies, which cut premiums for millions, expire in December 2025. Trump’s team hasn’t committed to renewing them, and some Republicans want them gone to trim federal spending. The Congressional Budget Office warns that letting them lapse could spike premiums by 75% and push 4 million off insurance by 2026. Trump’s VP, JD Vance, has floated risk pools—separating healthy and sick enrollees—which could undo ACA protections for preexisting conditions. Critics say this would raise costs for the vulnerable; supporters claim it’d lower premiums for the healthy. It’s a gamble either way.

Drug Price Battles

Trump’s mixed on drug prices. He once pushed a “most favored nation” plan to peg Medicare costs to cheaper foreign rates, but it got stalled by lawsuits. In 2025, he’s reversed some Biden-era drug cost caps, like a $2 generic price limit, signaling a shift. Yet, he might keep Medicare’s negotiation power from the IRA—something he’s praised before. If he does, it could save billions, per CMS estimates. If not, drugmakers stay in the driver’s seat.

Medicaid and Beyond

Trump’s first term saw Medicaid cuts proposed yearly, and 2025 budgets might echo that. Work requirements could return, limiting who qualifies. NPR reports this could shrink coverage for low-income folks, raising the uninsured rate from its current 8%. On the flip side, Trump’s allies like Brian Blase argue for cracking down on waste, not just cuts. It’s unclear which path wins out.

What’s the Verdict?

So, why does the US have the most expensive, low-quality healthcare? It’s a toxic mix of admin bloat, unchecked drug prices, and a fragmented system that leaves millions behind. Can Trump’s healthcare changes fix it? Maybe partially. Transparency could nudge prices down, and drug negotiations might help. But without tackling access—like through universal coverage or a stronger ACA—gaps will persist. History shows Trump’s team leans on market fixes, not big government overhauls, so don’t expect a revolution.

At TheMors, we think it’s a long road ahead. The system’s too entrenched for quick wins, and Trump’s “concepts of a plan” (his words from 2024 debates) need meat on the bones. For now, Americans keep paying more for less. Want to stay updated on this and other big stories? Head to TheMors – Breaking News for fresh takes and deep dives. Check us out today!