That may be one reason, but seems to me that it doesn't really raise the standard of education. So it doesn't really help with proving that "US > the world" in this aspect.

I imagine you could still fall-back from medical college to undergrad & get credit for the completed coursework that is relevant towards the Bachelor's degree you fall-back to. This way, you don't incur unnecessary costs on folks who succeed.

> I think really it's just the system was built this way and nobody's going to change it now.

Channeling my inner cynic: nothing's going to change given that the decision-makers benefit financially from the system being set up like this.