Almost 20% of the spending in the US economy goes toward healthcare, which is nearly twice as much as the average developed country. 

Despite this huge amount, only about 9 out of 10 people in the US have health insurance. In many other developed countries it’s close to 100%.

Why is healthcare so expensive in the US? Everyone has a different answer to this. But generally, it has to do with the fact that our healthcare system has been bent in so many directions by many special interests, lobbyists, and politicians over the years. 

The result is a big jumbled mess that’s incredibly complicated and requires a large amount of administrative personnel to get even the simple things processed. All this adds costs. 

The US health system is also fragmented with many insurance companies, healthcare providers, government agencies, and so on. Each has their own incentives and bureaucracies. None of this complexity helps to drive down costs. 

Unfortunately, there’s not much you can do about this. Except maybe move to another country. But for the rest of us, make sure you have the right health insurance plan for your needs. And eat an apple every day.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎

-Vivi & Shane