Awara
US Healthcare System in Crisis: Spends Doubly More Than Peer Countries, but Falling Behind in Life Expectancy—People Increasingly Hard-Pressed to Pay Medical Bills
Jon Hellevig
An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
One of the best-kept secrets in the United States is that workers pay almost all of the costs of their health care. They do so through employee contributions to premiums, out-of-pocket payments for services, a shift of compensation dollars from wages to benefits, and state and federal taxes such as the payroll tax that supports Medicare.
But instead of serving workers’ best interests by trying to give them the best care at the lowest cost, insurers, providers, employers, and unions act like adversaries. Insurers leverage their purchasing power to exact discounts from providers and their administrative power to reduce benefits. Dominant providers leverage their market position to raise prices independently of cost or quality. Employers leverage their power in labor markets where workers have limited job options to extract higher deductibles and out-of-pocket payments from employees. Unions, which now represent a tiny share of American workers, resist to the extent they can.
The numbers spell out the sorry result. On average, family premiums and out-of-pocket costs are about 40% of median household income (and even more if the payroll tax for Medicare is included). Meanwhile, health care outcomes for the population as a whole are improving at a rate far slower than premiums are increasing. This continuing transfer from wages to health care does not reflect better value for money.
To get on to the pathway to lower total costs with better outcomes like the parties involved in the mid-Atlantic region are trying to do, players in other regions must understand that they are in acommon system with a common pool of limited resources and that separate, zero-sum strategies are destructive. With that in mind, they must seek four changes.Harvard Business Review — HBR Blog Network
A renowned Indian heart surgeon is currently building a 2,000-bed, internationally accredited“health city” in the Cayman Islands, a short flight from the U.S. Its services will include tertiary care procedures, such as open-heart surgery, angioplasty, knee or hip replacement, and neurosurgery for about 40% of U.S. prices. Patients will have the option of recuperating for a week or two in the Caymans before returning to the U.S.
At a time when health care costs in the United States threaten to bankrupt the federal government, U.S. hospitals would do well to take a leaf or two from the book of Indian doctors and hospitals that are treating problems of the eye, heart, and kidney all the way to maternity care, orthopedics, and cancer for less than 5% to 10% of U.S. costs by using practices commonly associated with mass production and lean production.Harvard Business Review — HBR Blog Network (Free registration required)
...everything just costs a whole lotThe Huffington Post
Between directly lowered prices, tax breaks, and the failure to properly price carbon, the world subsidized fossil fuel use by over $1.9 trillion in 2011 — or eight percent of global government revenues — according to a study released this week by the International Monetary Fund.
The biggest offender was by far the United States, clocking in at $502 billion. China came in second at $279 billion, and Russia was third at $116 billion. In fact, the problem is so significant in the U.S. that the IMF figures correcting it will require new fees, levies, or taxes totaling over $500 billion a year, or more than 3 percent of the economy.Climate Progress