Why does healthcare cost so much?

[auditor0007]

Why does it cost so much, and why do those costs continue to go up? It really is very simple. We have found a way to increase life expectancy dramatically during a time when we have done everything else wrong.

First of all, our infant mortality rate is one of the worst, if not the worst, of all developed countries. Secondly, while we have reduced the percentage of people who smoke, we actually have more smokers than ever before, because of population increases. In any city where gangs rule the streets, hospitals see cases of gunshot wounds, beatings, and stabbings, to people who have no insurance, and this isn't a once in a while thing, it's routine. And last of all, on my list, is the fact that the fat population has doubled, leading to all sorts of costly treatments. But the bottom line is, that despite all these things, life expectancy has increased by eight to nine years over the last 40 years.

With all these things considered, you would think that life expectancy would be decreasing, not increasing, but we have seen increases because medical treatment has gotten much better. We have become very effective at keeping people alive much longer. The problem is that this all comes at a cost, and someone has to pay for it.

Let's look at two countries, the United States and Japan. Japan has the highest life expectancy of any country in the world. They also spend less on healthcare than most industrialized countries. In fact, they only spend about 1/3 of what we spend in the US. So what are some of the contributing factors?

Murder Rate: US rate is five times that of Japan.
Smoking Rate: Japans is double that of the US. (This is the one area the US has done very well at from a healthcare POV)
Obesity: US rate of Obesity is ten times higher than Japan. Over 30% in the US versus 3% in Japan.
Infant Mortality: The US Infant Mortality Rate is more than double that of Japan.

These stats give us an interesting glimpse of where we are. It is interesting that the US reduction in smoking has had little effect on reducing healthcare costs. This should tell us that obesity is a much bigger problem, and it is. As the obesity rate has more than doubled over the last 40 years, spending on healthcare has also more than doubled. Is there a correlation? Of course there is, but it is a bit more complex than that. Given that however, the fact is that a very large percentage of our increase in healthcare spending has come from the simple fact that America has become way too fat.

The bottom line is that we can reduce our healthcare costs dramatically by reducing our weight. Unfortunately this is not going to be an easy task, especially with a large percentage of the populations screaming that nobody is going to tell them what they can and cannot eat. God forbid Michele Obama suggest that people eat healthier. Of course, it's not all just about diet. Honestly it is just as much about exercise, and it starts with our kids. They no longer get enough.

When I was a kid, back in the 70's, we didn't have video games, computers, cell phones, or much of anything. Television was pretty basic and everyone watched a few of their favorite shows each week. So what did we do back then? We went outside and played. We played baseball, basketball, football, smear the queer, you name it. We were outside riding our bikes, we went to the public pool during the summer and listened to Rose Royce singing Car Wash. When we came home for dinner, we smelled terrible from sweating all day long. We were active. What we did not do was sit in front of the TV playing some stupid X-Box game eating potato chips and drinking soda for eight hours per day.

So how do we change all this and get kids back into shape? Honestly, there is only one answer that I can see that is workable, because parents aren't going to do it, and we can't take away all the video games and things that keep kids from becoming active. What it means is that we need to invest more money into our schools, make the school days longer, and use the extra time on physical activities. In other words, force the kids to be active for a couple of hours per day. The simple fact is that if kids don't become fat while they are kids, they will be and are much less likely to become fat as adults. Rather than concentrating on how to help people lose all the excess weight, we need to concentrate on not letting people become fat to begin with. But I know, it's such a communist idea.

 

[Old Rocks]

For the Health Care System, we need Universal Health Care, not the horrid for profit system of today.

For our children, we need to do whatever it takes to get them physically active. That has mental benefits as well as physcial. Just living longer is not a good goal. Living longer actively is. One cannot do that as an obese slug.

 

[Katzndogz]

For the Health Care System, we need Universal Health Care, not the horrid for profit system of today.

For our children, we need to do whatever it takes to get them physically active. That has mental benefits as well as physcial. Just living longer is not a good goal. Living longer actively is. One cannot do that as an obese slug.

Do you trust the government to approve medical procedures and pay for them? Why woud you think that when every expert and health care official tells you differently? At least in for profit health care, you can get some. Once the government decides health care isn't worth it for you, based on the cost benefit analysis, you don't get any at all.

 

[WinterBorn]

My biggest problem with gov't health care is our gov't. I'm not concerned about how the british did it or the french did it. They won't be running our system.

Before we allow the gov't to take over our healthcare, can someone tell me one thing our federal government does well and efficiently? Ok, besides the military (we can bomb folks VERY well).

 

[editec]

Why does healthcare cost so much?

1. because it is better than it was..much better...but ALSO more expensive than it was, too.

2. And so (see # 1) people live long enough to get really expensive chronic diseases associated with advancing age. Diseases that drag on and on sucking out 50 cents of every HC dollar spent on the LAST YEAR OF LIFE.

This really isn't rocket science, folks.

It's not a conspiracy, it's not a rip off, its an organic shift in the cost of HC compared to most other things we purchase.

 

[lizzie]

There are several reasons why health care is so expensive.

Americans overall have this belief that they are owed healthcare regardless of their own input into the equation.

HMO legislation passed in the 70's took the free market aspect away from the issue by forcing insurance companies to all offer comprehensive coverage rather than catastrophic coverage which was common prior to that time.

Americans are getting fatter and less productive (lazy).

Americans have created a culture of self-obsession and denial of reality.

 

[WinterBorn]

There are several reasons why health care is so expensive.

Americans overall have this belief that they are owed healthcare regardless of their own input into the equation.

HMO legislation passed in the 70's took the free market aspect away from the issue by forcing insurance companies to all offer comprehensive coverage rather than catastrophic coverage which was common prior to that time.

Americans are getting fatter and less productive (lazy).

Americans have created a culture of self-obsession and denial of reality.

If we would promote preventive medicine as much as we have promoted Viagra, costs would be much lower.

 

[lizzie]

There are several reasons why health care is so expensive.

Americans overall have this belief that they are owed healthcare regardless of their own input into the equation.

HMO legislation passed in the 70's took the free market aspect away from the issue by forcing insurance companies to all offer comprehensive coverage rather than catastrophic coverage which was common prior to that time.

Americans are getting fatter and less productive (lazy).

Americans have created a culture of self-obsession and denial of reality.

If we would promote preventive medicine as much as we have promoted Viagra, costs would be much lower.

American culture doesn't favor that. People here want to be self-destructive then have the taxpayer pay for their healthcare. Even your Viagra example shows what I'm talking about. Americans are self-obsessed, self-indulgent, and shallow as a general rule.

 

[geauxtohell]

Why does it cost so much, and why do those costs continue to go up? It really is very simple. We have found a way to increase life expectancy dramatically during a time when we have done everything else wrong.

First of all, our infant mortality rate is one of the worst, if not the worst, of all developed countries. Secondly, while we have reduced the percentage of people who smoke, we actually have more smokers than ever before, because of population increases. In any city where gangs rule the streets, hospitals see cases of gunshot wounds, beatings, and stabbings, to people who have no insurance, and this isn't a once in a while thing, it's routine. And last of all, on my list, is the fact that the fat population has doubled, leading to all sorts of costly treatments. But the bottom line is, that despite all these things, life expectancy has increased by eight to nine years over the last 40 years.

With all these things considered, you would think that life expectancy would be decreasing, not increasing, but we have seen increases because medical treatment has gotten much better. We have become very effective at keeping people alive much longer. The problem is that this all comes at a cost, and someone has to pay for it.

Let's look at two countries, the United States and Japan. Japan has the highest life expectancy of any country in the world. They also spend less on healthcare than most industrialized countries. In fact, they only spend about 1/3 of what we spend in the US. So what are some of the contributing factors?

Murder Rate: US rate is five times that of Japan.
Smoking Rate: Japans is double that of the US. (This is the one area the US has done very well at from a healthcare POV)
Obesity: US rate of Obesity is ten times higher than Japan. Over 30% in the US versus 3% in Japan.
Infant Mortality: The US Infant Mortality Rate is more than double that of Japan.

These stats give us an interesting glimpse of where we are. It is interesting that the US reduction in smoking has had little effect on reducing healthcare costs. This should tell us that obesity is a much bigger problem, and it is. As the obesity rate has more than doubled over the last 40 years, spending on healthcare has also more than doubled. Is there a correlation? Of course there is, but it is a bit more complex than that. Given that however, the fact is that a very large percentage of our increase in healthcare spending has come from the simple fact that America has become way too fat.

The bottom line is that we can reduce our healthcare costs dramatically by reducing our weight. Unfortunately this is not going to be an easy task, especially with a large percentage of the populations screaming that nobody is going to tell them what they can and cannot eat. God forbid Michele Obama suggest that people eat healthier. Of course, it's not all just about diet. Honestly it is just as much about exercise, and it starts with our kids. They no longer get enough.

When I was a kid, back in the 70's, we didn't have video games, computers, cell phones, or much of anything. Television was pretty basic and everyone watched a few of their favorite shows each week. So what did we do back then? We went outside and played. We played baseball, basketball, football, smear the queer, you name it. We were outside riding our bikes, we went to the public pool during the summer and listened to Rose Royce singing Car Wash. When we came home for dinner, we smelled terrible from sweating all day long. We were active. What we did not do was sit in front of the TV playing some stupid X-Box game eating potato chips and drinking soda for eight hours per day.

So how do we change all this and get kids back into shape? Honestly, there is only one answer that I can see that is workable, because parents aren't going to do it, and we can't take away all the video games and things that keep kids from becoming active. What it means is that we need to invest more money into our schools, make the school days longer, and use the extra time on physical activities. In other words, force the kids to be active for a couple of hours per day. The simple fact is that if kids don't become fat while they are kids, they will be and are much less likely to become fat as adults. Rather than concentrating on how to help people lose all the excess weight, we need to concentrate on not letting people become fat to begin with. But I know, it's such a communist idea.

Thoughtful post.

I would add the increased cost of technology. A CT scan costs $900 dollars and they are done like clockwork.

"Defensive medicine" plays a role too, but not nearly as much (per the research) as people claim.

 

[geauxtohell]

For the Health Care System, we need Universal Health Care, not the horrid for profit system of today.

For our children, we need to do whatever it takes to get them physically active. That has mental benefits as well as physcial. Just living longer is not a good goal. Living longer actively is. One cannot do that as an obese slug.

Do you trust the government to approve medical procedures and pay for them? Why woud you think that when every expert and health care official tells you differently? At least in for profit health care, you can get some. Once the government decides health care isn't worth it for you, based on the cost benefit analysis, you don't get any at all.

Who do you think pays for Medicaid and Medicare?

 

[deaddogseye]

for all the faults in the health care system - and it could always use improvement, what cant?- people are living longer and longer and more healthy lives. It cant be all that bad. Now in fairness I am one of the people with good health care (which I pay for totally out of my own earnings) and would no doubt feel differently if that were not the case.

And any government run system MUST involve some form of rationing, it is inevitable. In a sense the current system does as well but at least there is more room for individual choice - far more - than there would be in a government run system where there really would be none.

 

[Synthaholic]

I don't understand why the price of MRI machines have not gone down in the way that DVD players, VHS players, Flat Screen TVs, etc. have gone down, after an initially high price.

It seems as though they have been kept artificially high.

 

[old navy]

There are several reasons why health care is so expensive.

Americans overall have this belief that they are owed healthcare regardless of their own input into the equation.

HMO legislation passed in the 70's took the free market aspect away from the issue by forcing insurance companies to all offer comprehensive coverage rather than catastrophic coverage which was common prior to that time.

Americans are getting fatter and less productive (lazy).

Americans have created a culture of self-obsession and denial of reality.

If we would promote preventive medicine as much as we have promoted Viagra, costs would be much lower.

The data shows that preventive medicine programs do not lower the cost of health care.

 

[spectrumc01]

The problems with the medical system are numerous. The first major problem that increases health care costs is the pharmasuetical companies unwillingness to provide affordable medication. They site R&D costs as the reason for the high cost, but in reality the pharmasuetical companies profits are in the billions of dollars and that is after the R&D costs. They are already immune to lawsuits, so the reason for high prescription drug costs must be they want to make as much money as they can at the expense of society as a whole.
Insurance is the next reason health care costs are so high. Hospitals know that insurance companies will pay out without question any bill under $10,000 or some such number. So when a hospital bills the insurance company it trys to get as close to the number as possible. $30.00 for two tylenol is the example of this practice.
Doctors and health care providers defrauding the system to the tune of hundreds of millions of dollars per year is yet another reason. Read the paper and stories just like this are all over the place. It isn't uninsured people defrauding the system it is the health care people defrauding the health care system.
As for rationiong health care, it is already being rationed, but it is financial rationing that is taking place. You can only get health care that you can afford. The rich are scared that those who can't afford it to begin with may be required to get care that might take away from them. The rich don't go to the walk-in clinics, they go right to specialists. The rest of us go to the walk-in, because the health care plans we have only cover one to two visits per year.
The list of reasons go on and on. Socialized medicine is the only way to go. Yes, I know that the rich from other countries come here for their care. This is because those of privilage never have to wait for anything. When I start seeing people from Europe who make 25K a year coming to the US for their medical care then I will rethink my position on this.
Our Health care system is riddled with fraud and corruption. Here in Michigan Blue cross and Blue shield are being sued for anti-trust. So to believe that it is all at the feet of the uninsured is just false and misleading, and done on purpose.

 

[Katzndogz]

Making sure the rich die is one of the perks! I see.

Although that means you too. You just don't see it.

 

[lizzie]

Making sure the rich die is one of the perks! I see.

Although that means you too. You just don't see it.

Yep- all the idiots who hate the rich are going to be SOL when the rich die off.

 

[spectrumc01]

Making sure the rich die is one of the perks! I see.

Although that means you too. You just don't see it.

Yep- all the idiots who hate the rich are going to be SOL when the rich die off.

At the rate they are going they might not die off, but be killed off instead. Their appathy towards their fellow man is quiet astounding to behold, but not unexpected. Some of the rich understand and accept their responsibility of privilage, and some don't. Those that don't jepordize those that do. Revolutionaries tend not to draw distinctions. The French didn't, and neither did the Cubans. The Bolsheviks didn't fare to well either. Just saying....

 

[lizzie]

Making sure the rich die is one of the perks! I see.

Although that means you too. You just don't see it.

Yep- all the idiots who hate the rich are going to be SOL when the rich die off.

At the rate they are going they might not die off, but be killed off instead. Their appathy towards their fellow man is quiet astounding to behold, but not unexpected. Some of the rich understand and accept their responsibility of privilage, and some don't. Those that don't jepordize those that do. Revolutionaries tend not to draw distinctions. The French didn't, and neither did the Cubans. The Bolsheviks didn't fare to well either. Just saying....

Who do the poor think is going to fund all their programs when they kill the goose that laid the golden egg?

 

[mskafka]

I don't understand why the price of MRI machines have not gone down in the way that DVD players, VHS players, Flat Screen TVs, etc. have gone down, after an initially high price.

It seems as though they have been kept artificially high.

Got one of tho$$$$$$$$$$e, last night. With every click, vibration, and whir...I swear, I could hear an old-fashioned cash register tallying. I cannot WAIT to see the bill. And that's even with in$urance.

To reiterate what others have said, there are many reasons for the cost of healthcare in this country. Having concern for the US government's ability to distribute health insurance, is a valid concern. If we can't trust congress not to cheat while trading stocks, or for the SEC to notice when someone's running a billion-dollar ponzi scheme , health insurance would be a huge leap of faith and a gamble. If we knew that eveyone in government had integrity and honesty, maybe... But even as much of a bleeding heart as I am where social issues are concerned, there would have to be a HUGE overturn of the current system before I would support such a legislation.

 

[old navy]

The problems with the medical system are numerous. The first major problem that increases health care costs is the pharmasuetical companies unwillingness to provide affordable medication. They site R&D costs as the reason for the high cost, but in reality the pharmasuetical companies profits are in the billions of dollars and that is after the R&D costs. They are already immune to lawsuits, so the reason for high prescription drug costs must be they want to make as much money as they can at the expense of society as a whole.

R&D might have been the reason for high drug costs in the past, but in 1990 something, congress passed a law that allowed BigPharma to advertise. Since then, the cost of drug advertising has taken over as the leading cause of drugs that cost too much.

That in turn causes another uptick in costs. The patient sees the ad that tells them that they need the latest and greatest new drug and they go to their physician asking for it. The doctor, practicing defensive medicine and also wanting to please the patient, gives in and orders the medication.