Why Does Health Care in the U.S. Cost So Much?

Nighthawk62

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Nov 20, 2010
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"That’s because 20 percent of patients account for 80 percent of spending, and that 20 percent is made up mostly of the chronically ill."

“Indeed, perhaps the most significant reason Americans are drowning in health care debt may shock you: Americans are getting far too much unnecessary care. Of our total $2.3 trillion health care bill last year, a whopping $500 billion to $700 billion (30%) was spent on treatments, tests, and hospitalizations that did nothing to improve our health. Even worse, new evidence suggests that too much health care may actually be killing us.”
Even as millions aren’t getting treatments they vitally need, a leading medical journalist argues that the main culprit in the soaring cost of American health care is actually overtreatment… and all that extra care is making us very sick.

$500 BILLION: The amount that Americans spend annually on unnecessary care.

30,000: The number of Medicare recipients who die each year as a result of unneeded care.

50%: The portion of surgeries, tests, and procedures that are not backed by scientific evidence.

Consumers aren’t shopping wisely. The moral-hazard argument says that because people don’t pay out of pocket, they use more-expensive health care than necessary. Moral hazard says we go to the doctor when we don’t really need to; we insist on getting a CT scan for a twisted ankle when ice and an Ace bandage will do. Experts will tell you that as many as one in four doctor’s-office visits are “social calls,” and nearly half of emergency room visits are for care that could have been handled in a nonemergency setting. But even this argument doesn’t explain why health care costs so much. That’s because 20 percent of patients account for 80 percent of spending, and that 20 percent is made up mostly of the chronically ill. These patients are often sick with multiple conditions—such as diabetes, heart disease, and high blood pressure—and more than half of the money we devote to caring for them is spent when they are in the hospital. People who are sick enough to be hospitalized are generally too ill to be insisting on certain tests or procedures.

Indeed, perhaps the most significant reason Americans are drowning in health care debt may shock you: Americans are getting far too much unnecessary care. Of our total $2.3 trillion health care bill last year, a whopping $500 billion to $700 billion was spent on treatments, tests, and hospitalizations that did nothing to improve our health. Even worse, new evidence suggests that too much health care may actually be killing us.
According to estimates by Elliott Fisher, M.D., a noted Dartmouth researcher, unnecessary care leads to the deaths of as many as 30,000 Medicare recipients annually.


Source: AARP Magazine
 
Because it's a litigious society and everybody wants to sue the hell out of everybody else for every freaking little scratch they get. Makes for bad premium increases and richer lawyers. End of story.
 
The short short version? Lack of a free market.

Let me simplify it for you in two words: Big. Pharma.

They have the government in their pockets and have been successfully keeping out the small man for decades. There is no profit in cures, there is LOTS of profit in treatment for cures and even more profit in making up new diseases...as they currently do now.

The Drugging Of America baby...gotta love Capitalism on Steroids!
 
Expensive??? What are you talking about? Didn't you hear? If you can't afford it, Obamacare pays for it...well....not actually...the rest of us pay for it...but it's not expensive if you're broke, unemployed or here illegally.
 
The short short version? Lack of a free market.

Let me simplify it for you in two words: Big. Pharma.

They have the government in their pockets and have been successfully keeping out the small man for decades. There is no profit in cures, there is LOTS of profit in treatment for cures and even more profit in making up new diseases...as they currently do now.

The Drugging Of America baby...gotta love Capitalism on Steroids!

Like that nasty West Nile epidemic we were sold?
 
The short short version? Lack of a free market.

Let me simplify it for you in two words: Big. Pharma.

They have the government in their pockets and have been successfully keeping out the small man for decades. There is no profit in cures, there is LOTS of profit in treatment for cures and even more profit in making up new diseases...as they currently do now.

The Drugging Of America baby...gotta love Capitalism on Steroids!

Like that nasty West Nile epidemic we were sold?
No Einstein, like the tons and tons of mental diseases that they now have tons and tons of handy dandy pills to keep the fools placated...like ADD, ADHD, all sorts of made up crap...that they just happen to have a litanny of pillsto rememdy...as long as you keep poppin' those pills.

You're a dummy...plain and simple.
 
"That’s because 20 percent of patients account for 80 percent of spending, and that 20 percent is made up mostly of the chronically ill."

“Indeed, perhaps the most significant reason Americans are drowning in health care debt may shock you: Americans are getting far too much unnecessary care. Of our total $2.3 trillion health care bill last year, a whopping $500 billion to $700 billion (30%) was spent on treatments, tests, and hospitalizations that did nothing to improve our health. Even worse, new evidence suggests that too much health care may actually be killing us.”
Even as millions aren’t getting treatments they vitally need, a leading medical journalist argues that the main culprit in the soaring cost of American health care is actually overtreatment… and all that extra care is making us very sick.

$500 BILLION: The amount that Americans spend annually on unnecessary care.

30,000: The number of Medicare recipients who die each year as a result of unneeded care.

50%: The portion of surgeries, tests, and procedures that are not backed by scientific evidence.

Consumers aren’t shopping wisely. The moral-hazard argument says that because people don’t pay out of pocket, they use more-expensive health care than necessary. Moral hazard says we go to the doctor when we don’t really need to; we insist on getting a CT scan for a twisted ankle when ice and an Ace bandage will do. Experts will tell you that as many as one in four doctor’s-office visits are “social calls,” and nearly half of emergency room visits are for care that could have been handled in a nonemergency setting. But even this argument doesn’t explain why health care costs so much. That’s because 20 percent of patients account for 80 percent of spending, and that 20 percent is made up mostly of the chronically ill. These patients are often sick with multiple conditions—such as diabetes, heart disease, and high blood pressure—and more than half of the money we devote to caring for them is spent when they are in the hospital. People who are sick enough to be hospitalized are generally too ill to be insisting on certain tests or procedures.

Indeed, perhaps the most significant reason Americans are drowning in health care debt may shock you: Americans are getting far too much unnecessary care. Of our total $2.3 trillion health care bill last year, a whopping $500 billion to $700 billion was spent on treatments, tests, and hospitalizations that did nothing to improve our health. Even worse, new evidence suggests that too much health care may actually be killing us.
According to estimates by Elliott Fisher, M.D., a noted Dartmouth researcher, unnecessary care leads to the deaths of as many as 30,000 Medicare recipients annually.


Source: AARP Magazine

Wonderful. AARP went in the bag for Obamacare and is now ready to throw it's members under the bus. This is typical of the supporters of Obama. They cannot admit they are wrong so they've gone off the deep end for this guy.
Now, as far as the article is concerned...why are none of the statistics sourced? Where did these numbers come from? Who did the research?

The article suggests 100 people per day are dropping dead from "overtesting". HUH?
Look, there are cases where very sick people with multiple afflictions are getting massive amounts of medical care that probably will not extend the lifeof the patient but will make them a little more comfortable and allow them to die with dignity.
The expense of taking care of these patients is infinitesimal in the grand scheme of things.
The real problem is abuse of the system by folks who have minor ailments that will call 9-1-1 for a ride to the hospital for a cough.
Then there are the people who are self destructive. These are the drug abusers, those who will not use proper safety equipment on their jobs. The gang bangers who get stabbed and shot. Most children born out of wedlock are to uninsured patients.
That birth in the hospital is written off and then added to the cost of premiums for insured patients.
Now, the insurance carriers are responsible as well. These companies pay for treatments at not what are market rates but at rates set in negotiations with hospitals.
Medicare for example has dropped the rate of reimbursement. SO the cost to the patient does not change( which is counted in the statistics) the write off by the medical professional just gets larger.
Nobody really can produce accurate statistics as to the actual cost of health care in the US. One thing is clear, the system is not perfect. IMO we should have a pay as you go system which would increase competition between medical providers which would in turn lower prices. Eliminating insurance "networks" would also lower costs to consumers because the patient could shop around for the best deal for care.
Now, the most frigtening aspect of the health care debate is the spectre of a government take over of the system. With the government setting prices , more or less fixing the marketplace, the costs stay the same or continue to rise. What occurs is the marketplace shrinks as health providers leave the industry. Fewer doctors and fewer facilities means care MUST become rationed. In other words largely unavailable.
 
It starts with Reagan ignoring the Sherman Act, and the consequent merger mania of the 80s and 90s. In 1998, after 400 mergers, two conglomerates emerged in control of the entire health insurance industry. Lacking competition, they could raise their rates without fear of being disciplined by the market.

Profits were directed less and less to innovation, and more and more to advertising, doctors (who were sent on lavish junkets in exchange for the promotion of "designer illnesses" & expensive procedures), and Washington (for protection against foreign competition and anti-trust enforcement).

Many states like Iowa only have two options (some only one), i.e., there is no competition to keep prices down. Most densely populated metropolitan areas only have one or two insurers, which, again, allows them to raise rates without market discipline.

In order to address the lack of competition, Health insurance monopolies began to do business under pseudonyms to hide their identities and construct a false impression of competition. The largest is UNH, which sold products under such names as OptumHealth, Ovations, and AmeriChoice. The second largest, Wellpoint, calls itself Unicare and BlueCross/Blue Shield, to give the impression of competition. [Prior to Reagan, this kind of thing was illegal and seen as anti-consumer. This is why health insurance was affordable for almost 1/2 a century -- because competition was protected]

Because the absence of competition has allowed them to maintain such a high margin, they have built a bogus universe of "administrative" costs, which costs pay the inflated salaries of an overfed bureaucratic layer of upper management and CEOs who sit between Doctor and patient, contributing nothing. This is what monopolies do; they create lush positions for a do-nothing class of cronies. How do they get away with it: because they have escaped competition and thus don't need to innovate and lower prices. They pump profits into the elections of politicians who will keep their scam going.

So why doesn't the voter do something about it? The health insurance industry pours money into talk radio and television. Their advertising dollars have allowed right wing news sources to dominate the discussion. They have convinced innocent, well meaning voters that there is no monopoly -- and that any attempt to protect the consumer by expanding competition and breaking their monopoly is socialism.

Listen to the Right Wing posters on these message boards. If you point to the explosion of health costs and the lack of competition, they shake with anger. Why? Because Limbaugh, Savage, Hannity, Levine, Beck or Coulter have taught them not to trust anyone who suggests what has happened to insurance costs since the mega-merger explosion of the 80s. These posters are literally in a hermetically sealed information bubble. And they can't leave the bubble because their leaders have convinced them that the reality-based universe is filled with liberal demons who only seek to fool them. It is so sad, because they are destroying the very free market they claim to represent. They know not what they do.
 
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Let me simplify it for you in two words: Big. Pharma.

They have the government in their pockets and have been successfully keeping out the small man for decades. There is no profit in cures, there is LOTS of profit in treatment for cures and even more profit in making up new diseases...as they currently do now.

The Drugging Of America baby...gotta love Capitalism on Steroids!

Like that nasty West Nile epidemic we were sold?
No Einstein, like the tons and tons of mental diseases that they now have tons and tons of handy dandy pills to keep the fools placated...like ADD, ADHD, all sorts of made up crap...that they just happen to have a litanny of pillsto rememdy...as long as you keep poppin' those pills.

You're a dummy...plain and simple.

Jees...you should take the ol' chill pill.

but them again, that would dull your keen reasoning skills....(chuckle)
 
The short short version? Lack of a free market.

Let me simplify it for you in two words: Big. Pharma.

They have the government in their pockets and have been successfully keeping out the small man for decades. There is no profit in cures, there is LOTS of profit in treatment for cures and even more profit in making up new diseases...as they currently do now.

The Drugging Of America baby...gotta love Capitalism on Steroids!
No. The FDA drives up the cost of R&D by political fiat. Also, the federal government pulls all the strings because the government is heavily involved in providing funding for testing and research.
if the federal government would simply regulate to insure drug safety instead of having it's fingers in the pie, the drug industry could get it's job done much cheaper.
Now, some will argue that why a particular drug is sold for x in Uganda while Americans pay Y, is pretty simple. The price to Ugandans is heavily subsidized by other agencies.
If anyone is thinking government price fixing, watch out. You'll see how the research and introduction of new pharmaceuticals grinds to a screeching halt.
It is not capitalism that creates the expense. Rather it is government interference with the marketplace that creates the high cost.
 
Let me simplify it for you in two words: Big. Pharma.

They have the government in their pockets and have been successfully keeping out the small man for decades. There is no profit in cures, there is LOTS of profit in treatment for cures and even more profit in making up new diseases...as they currently do now.

The Drugging Of America baby...gotta love Capitalism on Steroids!

Like that nasty West Nile epidemic we were sold?
No Einstein, like the tons and tons of mental diseases that they now have tons and tons of handy dandy pills to keep the fools placated...like ADD, ADHD, all sorts of made up crap...that they just happen to have a litanny of pillsto rememdy...as long as you keep poppin' those pills.

You're a dummy...plain and simple.

for the record, when was the last time you heard a news headline warning of the inpending doom of ADHD? Did anyone tell you that you HAD to go get the ADD vaccine or you might die? Live it to a liberal to ignore the bullshit they are standing in.

Jackass....
 
The short short version? Lack of a free market.

Let me simplify it for you in two words: Big. Pharma.

They have the government in their pockets and have been successfully keeping out the small man for decades. There is no profit in cures, there is LOTS of profit in treatment for cures and even more profit in making up new diseases...as they currently do now.

The Drugging Of America baby...gotta love Capitalism on Steroids!

There's some truth to that, and putting the patient back in control as the customer will get rid of a lot of that.
 
The short short version? Lack of a free market.

Let me simplify it for you in two words: Big. Pharma.

They have the government in their pockets and have been successfully keeping out the small man for decades. There is no profit in cures, there is LOTS of profit in treatment for cures and even more profit in making up new diseases...as they currently do now.

The Drugging Of America baby...gotta love Capitalism on Steroids!

Do you ever get tired of thinking up excuses where you can blame some big faceless entity for a problem?
High medical costs? Big Pharma.
High energy costs? Big Oil.
High Unemployment? Big corporations.
COrruption in Government? Big corporations.
Discrimination? Big Whitey.
etc etc.

It must really be sad to be you, a mere pawn in the game of life at the mercy of every two bit combine, trust, or conspiracy in the world.
 
Because it's a litigious society and everybody wants to sue the hell out of everybody else for every freaking little scratch they get. Makes for bad premium increases and richer lawyers. End of story.

You can never file a malpractice clam against a doctor UNLESS you have a team of doctors as experts to prove that the other doctor was negligent.
So you can blame the doctors first and foremost as lawyers have nothing to do with that.
And most states now have limits on doctors' negligence other than economic damages at around 250K per dead patient.
Your loved one worth more than 250K if doctor kills them per their negligence?
The doctors have done a great job of fooling the public. They are getting rich and have laws passed limiting their negligence.
What other profession has limits on negligence?
 
I would say that 80% of health care dollars spent on an indivudual in the USA is druing the last 20 years fo their life.

What to do about this? Let them die earlier?
Draft those over 50 into the military?

Also does not the same conditions exist in other advanced countries rhat only spend 1/2 ofwhat the USA does per person on health care?

imo we spend twice much as the other advanced countries per person on health care becuase the medical industry in the USA can get away with charging that much. Many of our medicines are made overseas. And there the medicines cost 1/2 or less what they do in the USA.
Adversly those medicines made here also sell in other countries for 1/2 or less of the US selling price.
Why?
Think about it.
 
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