How does the healthcare system work in the USA?

The health care system in the United States is a complex mix of public and private programs , and it is one of the most expensive health care systems in the world . The system is largely fund ed by a combination of federal and state govern ments , private ins urance companies , and patients themselves . \n \n The health care system in the USA is primarily divided into two main se ctors : the public sector and the private sector . The public sector is primarily fund ed by the government and includes programs such as Medic are , Med ica id , which provide health care coverage to elder ly , disabled , and low - in come individuals . The private sector is fund ed by private ins urance companies and includes employ er - based health ins urance , individual health ins urance , and public health ins urance programs such as the Children ' s Health In sur ance Program ( CH IP ). \n \n The health care system in the USA is also character ized by a high degree of fragment ation , with a large number of different prov iders , pay ers , and organizations involved in the delivery and finan cing of health care services . This can lead to in e ffic ien cies and difficulties in coordin ating care for patients . \n \n Over all , the health care system in the USA is designed to provide access to health care services for all Americans , but it is also known for having high costs and a complex system of payment and coverage . </s>