First of all, let us define what health is. These can be two ways to define it: 1) Negative: the absence of disease 2) Positive: “a state of complete physical, mental and social well-being.” (World Health Organization, 1946).Therefore we can outline two aims of health policy: to improve health and to reduce health inequalities. In terms of the first definition, the US health care system is efficient. In terms of the world-accepted definition, the second one, the US health care system is expensive and in many cases not efficient. Let us analyze the relation between costs and effectiveness in this system. First of all let us trace the development and progress of both health care systems. The basis for current health care system was established after the World war II, when private doctors were serving most of the market.
The traditional perception of health care as one of the paid services was and is still remaining the leading one. But it doesn’t give the poor, elderly and disabled people, who most often need the medical treatment, the possibility to