One Simple Reason Why Health Care Costs More In The US Than Anywhere Else

Discussion in 'Healthcare/Insurance/Govt Healthcare' started by hvactec, Mar 9, 2012.

  1. hvactec
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    hvactec VIP Member

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    Americans are feeling the pinch of rising health care costs more than any other nation in the world.

    A huge reason why is simply that America lets providers set prices.

    The Washington Post's Ezra Klein draws this conclusion from talking to Johns Hopkins' Gerard Anderson:

    “Other countries negotiate very aggressively with the providers and set rates that are much lower than we do,” Anderson says. They do this in one of two ways. In countries such as Canada and Britain, prices are set by the government. In others, such as Germany and Japan, they’re set by providers and insurers sitting in a room and coming to an agreement, with the government stepping in to set prices if they fail.

    In America, Medicare and Medicaid negotiate prices on behalf of their tens of millions of members and, not coincidentally, purchase care at a substantial markdown from the commercial average. But outside that, it’s a free-for-all. Providers largely charge what they can get away with, often offering different prices to different insurers, and an even higher price to the uninsured."

    As we've reported, the average U.S. family of four dropped more than $8,000 on basic health care services in 2011, while record numbers of Americans have been filing for bankruptcy due to outstanding medical bills they can't afford to pay.

    Check out Klein's chart below to see how America's medical costs stack up against other countries like France and India:

    Read more: One Simple Reason Why Health Care Costs More In The US Than Anywhere Else - Business Insider
     
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  2. kiwiman127
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    kiwiman127 Comfortably Moderate Supporting Member

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    The cost of health care in the US is hurting the US economy and the US competitiveness on the world stage.

    [B]Healthcare Costs and U.S. Competitiveness[/B]

    The United States spends an estimated $2 trillion annually on healthcare expenses, more than any other industrialized country. According to data from the Organization for Economic Cooperation and Development (OECD), the United States spends two-and-a-half times more than the OECD average, and yet ranks with Turkey and Mexico as the only OECD countries without universal health coverage. Some analysts say an increasing number of U.S. businesses are less competitive globally because of ballooning health care costs. U.S. economic woes have heightened the burden of health care costs both on individuals and businesses. The U.S. health care reform law signed by President Barack Obama on March 23, 2010, includes measures aimed at making healthcare less expensive and more accessible, including upgrades to government-run Medicare and Medicaid. Still, reforming health care has proved politically divisive, especially over the option to expand social medicine, as well as new mandates on employers and individuals. Whether these reforms will reduce the health care-cost burden on U.S. industry remains under debate
    .
    Healthcare Costs and U.S. Competitiveness - Council on Foreign Relations

    We're not only talking about individuals, we're talking businesses and our government (at taxpayer expense).
    So what do we want? Do we want the Free Market to correct this, all the Free Market has done is to price health care so high that it's a threat to the economic security of the US. Just about every economist has stated the threat of the outrageous health care costs is hurting the US economy.

    Maybe it's the time to do what most of the rest of the world's countries do, negotiate health care prices.
     
  3. M14 Shooter
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    M14 Shooter The Light of Truth

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    Normally, where there is supply and demand, the market sets prices.
    However, fior this to work properly, the prospective consumer must be directly encumbered with paying the cost of the goods and services he consumes.

    When third-parties pay for those goods/services, the consumer is insulated from the costs of what he receives, and the free-market system of supply/demand breaks down.

    Simple solution: remove third-party payers and expose the consumer to the full cost of the goods and services he receives. This will cause consumers to 'shop around' and thus force providers to compete for business; this, in turn will lower prices and improve quality.

    Want to solve the 'problem' of health care costs? Make people pay for it themselves and bring the free market back ito it.
     
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  4. GHook93
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    GHook93 Aristotle

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    Obaminationcare doesn't do any of that!

     
  5. GHook93
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    GHook93 Aristotle

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    Why do you think aspirin costs $5 a pill in the hospital?


     
  6. PredFan
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    PredFan Gold Member

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    You want the best, you pay for it.
     
  7. M14 Shooter
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    M14 Shooter The Light of Truth

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    Because the patient isn't paying for it directly.
     
  8. Douger
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    Douger BANNED

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    Open the yellow pages to physicians. Read the names.
    Next open to attorneys. Read the names.
    You now have your answer.
     
  9. kiwiman127
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    kiwiman127 Comfortably Moderate Supporting Member

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    So I see those actually defending the outrageous cost of health care in the US don't care about America's business competitiveness. And people don't care if the super cost of health care in the US is cutting into their expendable income. Neither do they understand that the increased cost of health care insurance their employer provides effects their wage growth. Who pays for the high costs that increases 3-4 times the inflation rate,,,every poster on these boards.
    When you folks buy a car and the salesman offers you a deal, do you say, no,,I want to the pay sticker price?
     
    Last edited: Mar 9, 2012
  10. rdean
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    The single largest reason can be summed up with one word, "Republicans".
     
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