So despite that economist warn that the cost of healthcare is a threat to our economy, people favor keeping the status quo? Profits are what is contributing to the fact the US easily has the most expensive healthcare in the world. Unbridled rising costs are already hurting this country's economy and it going to get much worse.
Keeping the status quo is an invitation to the furthering decline of the US. This runaway train has to be stopped before it's too late.
NO, its not. that is one of the dumbest posts yet.
Actually it is profit that makes the US healthcare system the most expensive.
MMS: Error
31% of spending goes on administration compared to say 15% for Canada.
So let's say that 16% of what is spend simply goes on the fact that because it's private, it makes unnecessary bureaucracy. Part of that bureaucracy can be seen in the govt simply not trusting private companies to do things they way they should be done, and another part because they get money through insurance companies who don't see to care how much things cost.
I have a figure of $2.26 trillion for healthcare in 2009. This is about 17-18% of GDP. That's about 3% of GDP goes on waste of unnecessary administration if my math is correct.
That is about $0.3 trillion or $300,000,000,000 or $300 billion a year.
I might have my figures wrong here, it seems rather high to me, but then again 3% of GDP I guess is quite high.
US health insurers reap record profits in 2009 - World Socialist Web Site
19 February 2010
"US health insurers reap record profits in 2009"
"The five firms reported $12.2 billion in profits last year, an increase of $4.4 billion, or 56 percent, over 2008. At the same time, 2.7 million Americans who had been enrolled in private health plans the year before lost their coverage."
Okay, the profits made my these five firms, considering there are maybe more than 1,000 insurers, is tiny compared to the money spent of wasting away with admin.
So we've got $312 billion being wasted.
Fortune 500 2012: Industry: Health Care: Insurance and Managed Care
This one, with the top 10 companies on the fortune 500, has profits at $13,751,000,000 or $13 billion.
However, profits aren't just the only thing. Revenue is important here too. What they're spending that is completely unnecessary in getting the job done.
This is $301,806,000,000 or $301 billion, and that's just the top 10 companies in the Fortune 500.
That's a waste of $601 billion, or 6% of GDP, or about 30% of healthcare spending.
Then you have the corruption that I would find it hard to put numbers on. The over spending on drugs, the over spending on hospital beds, the over spending on nonsense.
The price of excess: Identifying waste in healthcare spending: PwC US
"Our research found that wasteful spending in the health system has been calculated at up to $1.2 trillion of the $2.2 trillion spent in the United States, more than half of all health spending. "
This page suggests that more than 50% goes on wasteful spending. It's hard to see how it doesn't seeing as I've only looked at 2 areas and got up to 6% of GDP.
Manoj Jain, MD MPH: Doctors Can Eliminate Waste From Health Care
"An estimated 30 percent of health care spending -- amounting to $750 billion a year -- is wasted, according to a recent report by the Institute of Medicine."
Well, I've reached that without getting very far. This is the medical guys saying it's happening, and they're probably being modest.
Here's an example:
"In a private conversation, a cardiologist tells me about his partners -- "loose guns" he calls them. "At the hint of chest pain they will do a cardiac cath and this makes everyone happy," he says. The patient feels good that something was done, the doctor gains certainty of his presumptive diagnosis and the hospital makes money. While it may seem like a win-win-win, in fact, we all lose as the health care expenditure tops $2 trillion siphoning funds from education, housing and business innovation."
So, the US spends double what the UK spends per capita. And actually probably that increase in costs goes on waste, not on better healthcare.