Understanding Healthcare Costs in the U.S. The United States allocates an unprecedented amount of resources to healthcare, spending approximately $4 trillion annually, which constitutes nearly 20% of its Gross Domestic Product (GDP). This expenditure is significantly higher than what many other developed nations invest, often spending around half of that percentage. The reasons for this disparity in healthcare costs are multifaceted, encompassing various complex factors that contribute to the overall financial burden on the system. One primary factor driving healthcare costs in the U.S. is administrative expenses. The healthcare system is characterized by a multitude of private insurers, public programs, and providers, leading to substantial administrative overhead. Research suggests that…