Wasting Healthcare Dollars….

October 7, 2014

Medical Costs

I was going through some of my past scans and ran across this one recently. It was from 2012 but I didn’t keep the source info. I can only assume it has some validity but just looking at is now tells me a lot about our American healthcare system.

Before I get started here I want to let you know about a basic fallacy of Obamacare at least as I see it. Too many people make the complaint that Obamacare has not brought down the cost of healthcare. If I remember right that was not the purpose of the ACA. It was to provide affordable healthcare to more people. The proverbial “second shoe” was to attack the cost side of the equation and of course we know that never happened due to our stifled government.

The chart above tells me that there are several different avenues to reducing out healthcare expenses. The most obvious one is in the insurance costs. It is a well known fact that Medicare has an administrative cost much lower than any private insurance company. Of course one of the reasons for that is because of our aversion to providing an adequate tax base to fund a higher level of service.  But whatever the reason, insurance bureaucracies eat up $190 billion per year in our healthcare dollars. Moving to a single payer system could reduce that expense dramatically.

The second obvious way to reduce costs is reducing errors in the system. We know that over 50,000 people a year die in hospitals annually due to medical errors. This is one area that seems to be currently improving via the digitization of medical records and the elimination of the doctor’s prescription pad. It has always been a joke about doctors illegible writing. But it is not a joke that it causes many unnecessary deaths each year. Unless it happens to someone you personally know we seem to flippantly write off that fact.

$105 billion simply because doctors and hospitals overcharge for their services. Of course single payer system which oversees medical costs would greatly reduce this one.

$210 billion for unnecessary services is a hard one to tackle. If you try to eliminate unnecessary services the “death panel” ranters will quickly come on board. Someone else’s unnecessary service is bad while your test to eliminate the possibility of a very remote cause is good.

When we finally get around to doing things to reduce the cost in our healthcare system there seems to be many avenues to take. In my mind a single payer system much like the rest of the world already has provides the biggest potential for cutting our healthcare expenses and someday we might actually get around to accomplishing that task…

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3 responses to Wasting Healthcare Dollars….

  1. 
    dermotinillinois October 7, 2014 at 12:48 pm

    The Missed Prevention Opportunities is one (not the only one) that peeves me….that is, if it means what I think it means.

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    • 

      Yeah me to. It seems we American must wait until it is a crisis and then “attack” the problem on its brink. I tire of the entire ideology. 🙂

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  2. 

    That is why all my Korean, Taiwanese and Chinese students go back to their countries for cheaper medical care.

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