Frog In The Kettle Thing

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Comment by Steve Stuck on July 6, 2009 at 5:20pm

I e-mailed several "Pro-Government" healthcare ".orgs" last week asking about how much Americans spend on healthcare each year. The number I keep seeing is that Americans spend $2.1 Trillion a year on healthcare. My basic question is, does that total include what local/state/federal spends through programs like medicare/medicaid and other state run healthcare programs?

If that is the case, then that means personal expenditures of real money is very small compared to GDP then what most are saying.

Anyone have any stats for me to look at to solve my question?

Comment by Timothy Maguire on July 6, 2009 at 4:05pm

LATE-BREAKING NEWS: A study was released by the Employment Policies Institute (EPI) on June 23, 2009.

"The number of uninsured Americans is a hoax": http://www.crossville-chronicle.com/opinion/local_story_187090557.html

 43 percent of the claimed 47 million uninsured Americans can afford medical insurance and elect to remain “voluntarily uninsured.”

 Many of the uninsured qualify for health care coverage through SCHIP, Medicaid or other existing government programs but for whatever reason, about 11 million simply refuse to take advantage of these taxpayer-funded programs.

 About 2 million of the remaining Americans receive health care as inmates in our prison system since they use jail, penitentiary or prison mailing addresses.

 Many of the remaining uninsured would never obtain insurance even if it were offered; they are illegal residents, prostitutes and drug addicts.

 The actual number of Americans who desire and cannot obtain health insurance is estimated to be about 8 million.

Comment by Sean Shepard on July 6, 2009 at 3:31pm

@Steve - those same "pro choice" screamers are also not real keen on "choice" when it comes to your retirement savings, social security, what school you put your kids in and numerous other things.

Comment by Bill Bean on July 4, 2009 at 6:31pm

Gus, I hear what you're saying. I'm spending more and more of my income on healthcare and watching it slowly eat up my parent's entire income. Unfortunately, government doing anything doesn't save money, it simply shifts the cost. Same idea as when they raise taxes on business. The gov't is us - our money.

Increased incentive to be healthy (preventive approach) is huge. But there's a lot of money in making drugs to treat obesity (et al).

Comment by Gus Pearcy on July 4, 2009 at 11:29am

My health insurance doesn't pay for "everything." I have a deductible. Doesn't everyone?

I do believe there are people who choose against having health insurance. I'd rather spend my money on other things too. I'm not sure the solution is a government one, but I don't know how to bring down the cost of it otherwise.

One thing is for sure, there should be more incentives for preventative health care. I can't continue to pay for increasing healthcare costs. It's zapping all my purchasing power and I will never be able to save for retirement.

Comment by Steve Stuck on July 3, 2009 at 11:08pm

Isn't it funny, the people who scream "Pro Choice" are very silent when it comes to other aspects of medical care being taken over by government.

Comment by Sean Shepard on July 3, 2009 at 2:27pm

Don't forget all of the things that can be done for people now (that cost money) that didn't used to exist. Those things exist BECAUSE there is money in health care and profits that can be reinvented and used to innovate. People fail to distinguish between "health insurance" and "pre-paid healthcare" as well. I am always shocked when people expect "insurance" against things that have already happened or are certain.

Nobody would expect to buy car insurance if the insurance company knew for certain you were going to wreck your vehicle the very next day. Why do people expect 'insurance' against things they already have?

And Tim is right on point about consumers needing to have information and an incentive to be cost conscious.

Comment by Timothy Maguire on July 3, 2009 at 12:08pm

Great post, Bill. You bring to light some needed insight.

When people ask why medical care is so expensive, I give them two reasons. 1) because your employer pays for your health insurance, and 2) because health insurance covers "everything."

Imagine a world where your employer pays for your groceries. No limit, just pile the cart full of food every month, and your boss gets the bill. Would you buy Hamburger Helper or Filet Mignon? Would you pay attention to the prices listed? Would the grocery store owner notice that you don't care about cost anymore? Would prices skyrocket, leaving those without employment to bear the higher costs?

What if our auto insurance companies covered "everything?" Tires, oil changes, batteries, rust? Would auto insurance cost more? Would you stop questioning if you really needed new wiper blades when asked by the Jiffy Lube attendant, or would you just ask "is it covered by my insurance?"

Prices come down only when there is true competition and consumers have access to information, as well as bear the burden of their choices. Whether we move to socialized medicine or stay the current course, the system will remain broken until those fundementals are restores.