The cost crisis in our health care system simply can’t be overstated. The rapid growth in cost is the driving force behind our projected long-term public debt and the growth in private health insurance premiums threaten to cripple private industry. The Commonwealth Fund is out with a new study showing just how quickly the situation is worsening.
National surveys have found that family premiums for employer-sponsored health coverages increased 52 percent from 2003 to 2009, while median family income rose 13 percent. Such a rapid increase in the cost of employer-sponsored health benefits has forced difficult choices at workplaces across the country. Studies indicate that slower growth in wages and lower savings for retirement (worker and employer contributions) have been part of the trade-off to preserve health benefits. Despite such trade-offs, the monthly cost of premiums paid by workers and their families is up, consuming an ever-greater share of any wage increases they might receive.
Health care premiums have grown roughly four times faster than income. This simply isn’t sustainable without crushing government and private budgets. And if the problem is not truly dealt with, that is what will happen:
As of 2009, the average premium was $13,027 a year for family coverage for private sector employers, ranging from $11,000 to over $14,000 across states. If insurance premiums for employer-sponsored health plans in each state continued to grow at the same average annual rate seen from 2003 to 2009, the average premium for family coverage would rise to $23,342 by 2020—an increase of 79 percent.
The study looked at what would happen if the new health care reform law reduced the annual projected premium growth rate by one percentage point or 1.5 percentage points. In the former, average premiums would reach only $21,019 in 2020, and in the later they would reach only $19,938.
Even with optimistic projections, the new health care law would still see premiums growing faster than income, and we’d still have by far the most costly health care on earth. This means, even assuming health care reform works well, which I highly doubt, the ever-growing cost of our health care premiums will force it to remain a critical political issue for years. It has not be fully dealt with.
I doubt the ability of the new law to really control cost because much of the “bending of the cost curve” is based on what I think is clearly faulty economagic, thinking pushed by economists like Jonathan Gruber. It is the idea that using things like an excise tax to shift more of the health care cost-sharing on to regular people will reduce cost by making them more savvy health care consumers. Of course, I believe this is pure nonsense for many reasons, including the fact that this Commonwealth Fund study found that, over the last decade, employers have been engaging in massive increases in cost-sharing, yet health care premiums still grew rapidly.
Premiums have gone up even while employers have asked workers to pay a greater share of health care costs—in the form of deductibles and copayments—or have reduced the generosity of benefits in an effort to moderate annual premium growth.
Unfortunately, although the growth of health care costs means it must remain a top political issue, we seem doomed to have our elected officials embrace destructive, regressive “solutions” that don’t fix the problem. The Republican Party, Obama’s bipartisan deficit commission, and even the Obama administration are all devotees of the economic dogma that forcing regular Americans to pay even more out-of-pocket for health care will control costs.
Of course, what is ignored are actual solutions that have been proven to work by other countries, like the way to reduce cost is to collective bargain on behalf of all health care consumers for the best rates possible using single-payer or all-payer systems. But those real solutions would hit the huge profits of politically well-connected large corporations, so we appear doomed as a country to instead see useless economagic solutions that only hurt regular Americans.




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Can you say, “Single Payer Health Care Finance”?
Anyone know where I can find a breakdown of where all the money is going? Is it just the insurer’s profits? Doctors? Drug companies? Where’s all the gravy going, ‘cos I haven’t even seen the potatoes?
Yep.
Yes Government sponsored health care form birth to coffin paid by everyone with taxes. Sure is time to get greed out of caring for the sick. Arizona just let a liver transplant because they didn’t want to pay for it. Republican DEATH PANEL! What assholes, bet if it was there relative they would have found a way to pay for it by the State!
Soon the only people who will have health care will be the ones who can pay for it out of pocket. The health insurance industry, one way or another, will manipulate its self out of existence.
The faulty assumption here is that health care is a commodity like a car or a bicycle. When someone has acute appendicitis they don’t go shopping for surgeons and gastroenterologists. That’s true for any emergent condition.
But it’s also true for more routine preventive care. We go in for a physical, and our internist/family practitioner orders some lab work, perhaps a colonoscopy or mammogram or bone density scan. We don’t shop around for price on those things: she refers us to a facility and we go get it done.
Health care is not a consumer good, and treating it as if it were leads to all sorts of rotten macro- and micro- economic decisions.
Might be a good thing. We could start all over.
Absolutely!! For profit Health Care will always kill patients.
You’d have to look very carefully at the Annual Reports for the publicly-held insurers. And take that with a large grain of salt.
who cares..I’ll be long gone by then
Don’t forget to pull the stone over your head. guess you don’t have any kids/grandkids. Oh well your loss that you just don’t care for your fellow human.. Like I said your loss… sigh..
Ask not for whom the bell tolls,
It tolls for thee.
Nobody can afford that! It’s absolutely impossible.
While most countries required their health insurers to be not-for-profit, the US managed, in the 70′s to give them the license to get fat off the suffering of sick people. It’s even part of the GDP.
We’ve really gone off the rails as a nation that makes any sense
Clue: it’s NOT going to the doctors or the patients.
Yes and IF you are a well educated “medical consumer” the doctors don’t like it anyway
True, dat.
You can tell a really good doc with a few characteristics:
1. She’s well-respected by her peers;
2. She knows what she knows; and most important,
3. She knows what she doesn’t know and won’t bullshit you.
That depends on the doctor.
I think they like patients who don’t ask for stuff that won’t help, like antibiotics for colds.
All of the above, and also going into inefficiencies. A lot of it is invisible, in the sense of procedures being taken for granted that are not necessary.
In general, which of the participants benefits most from the medical industry’s high costs is indeterminate from outside analysis, because is not a market based system. The only economics rule that helps is that the more powerful players benefit the most. Thus, over the years, as insurers and PhRMA have become bigger players, they have been able to capture more of the benefits.
Exactly.
Democrats played their part during the health care debate well. They suck.
Before healthcare passed this year, BC was prohibited by law from changing my plan by reducing benefits. They could raise my rates, but they could not alter the contract by withdrawing benefits. Thanks to HCR, BC was able to cancel the plan I have had for 15 years and replace it with a plan that offers far fewer benefits at TWICE the deductable and increase my rate by 83% for this pathetic coverage. I worked my tail off for Obama’s election. This is a huge betrayal. HCR has subsidies for people to buy insurance that will kick in within a few years. By the time that happens, half the country will qualify for government subsidies at these rate increases. Grayson said the GOP health plan was,” Don’t get sick, but if you do, die quickly.” Well, it seems that was the Democratic plan too. I’ll be on medicare about the time all of HCR reform kicks in. Frankly, I would rather just die quickly than go through all my family’s assets and insurance company fights. HCR is a travesty. What passed is going to be worse than if they had done nothing at all. I tell the young people in my family to learn foreign languages and prepare to live abroad after graduation. America is becoming a h**l hole. Thankfully, I am retired. The unemployed got kicked in the gut today and bascially told they don’t matter. Great country.
Yeah, Obama made us pay full price for everything by killing drug re-imports and drug price negotiation amongst other things and then says we’re the problem in that our healthcare is just too good. Sooner rather than later people will hopefully wake up to the fact that Obama brought change for the worse with healthcare by blaming the victims while profiting his corporate buddies.
danps is upstairs!
Shutting Down the Internet, One Seizure at a Time
Instead of fighting for a fake, meaningless marketing plan known as “public option”, you should have been fighting for single payer.
“Thankfully, I am retired.”
Don’t count on Social Security. Chainsaw Barak is getting ready to go to work on Social Security, Medicare, etc.
You’ve just spelled out the exact reason why the system should be removed from the private, for-profit machine.
Health care shouldn’t be treated as though it were a consumer good. It shouldn’t be administered by private corporations that squeeze their customers for profits.
The public option would have been real reform, though it wouldn’t have been the sweeping reform many of us would have liked.
There is truth in that but the strum und drang over the PO was really more about discovering the perfidy of Obama. It was for me a bitter pill but my expectations changed right then.
Picture the worst case scenario:
1) The USG has already passed a law mandating that each and every citizen purchase health insurance if it isn’t provided by an employer or the government.
2) It’s looking like it’s a very real possibility that the USG will remove the favorable tax treatment for employer provided health insurance, which would virtually insure most employers would drop coverage completely. (Except for the lucky few filthy rich and the Very Serious People, but I repeat myself)
3) The USG and state and local governments, due to lost revenue and rising premiums, will soon be unable to provide health insurance for workers. Texas and other states are already chirping about abandoning Medicaid patients.
4) This will leave 300 million Americans forced to purchase health insurance through monopolistic entities with absolutely no power to negotiate pricing. 300 million Americans as indentured servants to the health care industry, unable to purchase anything but crappy health insurance..
Could this really happen. Of course not, the Democrats have the American peoples backs.
Don’t they?
…
I intend to die from whatever disease I end up getting. But that’s just me, I never thought this bullshit clownshow was terribly worth it anyway.
Yeah I’m insured, probably better than most people. Omg, you’re 50+, you must get a colonoscopy etc etc I’m told. It’s all cuz I have some official money, and some mob asshole wants it. Fuck. This. Shit.
I wish I could give my “healthcare” benefits to Jane Hamsher or some little kid somewhere who needs it.
My elderly mother recently had a serious, but somewhat routine heart procedure done that involved an overnight stay.
Her bill, just for the procedure alone: $89,000
I think she’s on the hook for 20% of it.
Oh, and then there’s the room fee at 6K.
F’n Vampire society, FU America
You weren’t around here last year, were you?
Because we were screaming at them for not going with single payer, and then losing public option.
Your’s are the only real numbers in this whole thread.
Can you believe that?
Until a couple months ago, I paid aprox. $7,000/ year, and my employer paid $5,000/year for my health insurance. On top of which I paid an average $30 co-pay each time I, or one of my family encoutered a healthcare professional face-to-face.
Two months ago, my plan channged and now I pay aprox. $7000/mon, and my employer pays aprox. $5000/mon and I have a $4800 deductible which resets every January 1st.
I have casino healthcare.
Minimum bet:
$16,800 dollars.
Bet you don’t get sick.
Your right about that. My spouse is on both and this is the second year without an increase in SS and medigap premiums are rising too. It’s just a matter of time I guess. When you look at the last decade, it’s no wonder people have no confidence in the government.
Huge premiums, huge deductables, huge copays. Yes, we are insured, but we can’t afford to use our insurance. It’s the perfect con for the insurance companies. Rake it in, but never have to pay it out.
you’re wrong. Although, I guess I can’t really blame you for thinking that with the way FDL kept up the noise re: the fake marketing ploy of the ever-watered down “public option”. I guess Obama isn’t the only one who gets in trouble “pre-compromising”
http://warisacrime.org/node/53934
The only way this is going to get any better is if doctors, nurses, technicians, pharmaceutical companies, equipment providers, etc. all take a massive cramdown.
W4B, I can’t believe that you are paying $7000/mo and your employer $5000/mo. I would believe $700/mo and $500/mo. At those figures you would be paying $8400/yr and your employer $6000/yr. With a $4800 deductible you would be paying $13200/yr unless your spouse also has a $4800 deductible, then it would be $8400+$9600 = $18000/yr not counting your employer’s cost. Whatever, the cost is unacceptable in taking care of the nation. Taking care of the nation, however, is the last thing on obama’s mind. All he is worried about is taking care of the big boys.
Yes, medical providers will need to take a haircut to bring down costs. Also medical schools will need to lower costs to make it more affordable (so that doctors don’t graduate with six figure debt)
As we continue to outsource and deindustrialize, we can afford fewer and fewer of the healthcare industries built in rents and middlemen.
On top of the abuses in the pharma and insurance industries, we also have private equity companies doing pump&dumps of the hospital corporations. That leaves the hospitals massively in debt and highly understaffed.
And on top of it all, the American work force has become increasingly less productive in terms of wages ever since outsourcing moved into high gear.
How can doctors get paid if the American worker isn’t getting paid?
Watt4Bob, if this shows up twice, I’m sorry, but I replied once and the reply disappeared into cyberspace.
I think that you have some typos. $7000/mo would be $84000/yr and $5000/mo would be $6000/year. I suspect that you meant $700/mo and $500/mo. If the $4800 deductible is for your family, then your bet would be $13200/mo. If the deductible is for you and your spouse each, then it is $19000. Whatever, it is too much (I know, I’ve been paying about that amount) and year by year will get worse. obama has no care about the people that are not part of the MOTU. As long as the big corps can rake in the money, especially by letting people die, he is happy. I am rooting for the repugs to make him a one-termer.
That’s half of the solution. The other half is “VA for everyone”, to expand the current VA system into a nationwide system of government-run clinics and hospitals available to everyone, not just veterans.
The Medicare-for-all insurance program covers everyone. But how much should it pay for procedures and treatment? That’s where the VA-for-everyone becomes useful–those rates would be set by what it costs a the non-profit VA-for-everyone to perform said treatment. Medicare would reimburse any private clinics and hospitals the same amount.
Unlike Gruber’s false reasoning, the real cost overruns of the US system arises out of its *for-profit* nature. By eliminating the insurance industry, and by eliminating the profit by basing the reimbursements on the non-profit VA-for-everyone requirements, you squeeze private hospitals and clincs profit margins. Hopefully you squeeze them so much that the capitalists throw up their hands and cry “we can’t make profit doing this anymore!!” and exit the business, handing back their treatment centers and hospitals to the same type of institutions that used to run them before health care inflation took off–charities, religious institutions, and humanitarian organizations. These I believe would be quite efficiently and could do quite well under the same reimbursement program.
All of America would be covered, and all our treatment centers, public or private, would be non-profit. That is the way it should be.
stewartm
We also need to get the parasites of the financial sector out of our healthcare. We know all about the insurance industry but I bet a lot of people don’t know about how private equity debt loads the hospital corporations. Private Equity firms don’t improve our hospitals, they simply load them with debt and then walk away with the profits.
http://www.npr.org/templates/transcript/transcript.php?storyId=120391729
How do they get away with it? These firms tend to be loaded with political insiders. It’s part of the DC establishment’s retirement plan.
“awww, are you little people complainin’? too bad.”
These far out projections are always wrong and always suspect.
My employer health insurance premiums went up over 25% this year alone!
This was the increase in the total premium amount, of course my cost increased well over 33% since my employer froze their contribution years ago.
A single payer option and allowing drug re-importation were the only things that could have kept these costs in check.
What a missed opportunity, this insurance increase will cost many families much more than any measly Bush tax cut for the middle class.
That will be very difficult to know.
We desperately need single-payer health care, not a welfare bailout for the serial-killer insurance agencies.
Mandates are from the Republican 1993 plan:
Any proposal that sticks with our current dependence on for-profit private insurers … will not be sustainable. And the new law will not get us to universal coverage …. — T.R. Reid, The Healing of America
Yes, there is a typo in my exposition, sorry but the steam errupting from my ears when ever I contemplate the healthcare reform we’ve gone through causes me to loose my focus..
My policy costs aprox $12,000/year split between myself and my employer, and my family’s combined deductible is $4800/year.
If we spend only the $4800 out of pocket in one calender year,(the deductible) then my plan has to pay for nothing.
I’m essentially self-insured with a side bet to cover anything over $4800.
That’s why I call it casino HC.
I remember about a year ago when the drumbeat from the “pragmatists” was just starting:
“We can fix it ‘later’.”
“Don’t let the perfect be the enemy of the good.”
“Politics is the art of the possible.”
“If anyone dies from a lack of health insurance, it will be all your fault, you stupid spoiled brat asshole Naderite purist Firebaggers!”
So, “pragmatists”, when is this “later” that the Democrats are going to fix this bill? Certainly not in the next two years, and probably not in the four years after that. I think that Obama is going to creamed in 2012. Only Sarah Palin stands a chance of snatching defeat from the jaws of Republican victory, and even she might not be able to pull it off.
Even if Obama and the Democrats wanted to fix the bill, a few more years of rising health care costs would seriously discredit their attempts to do so. I can just imagine some future Republican’s speech:
“A few years ago, the Democrats decided that the problem with health care was too little government. They said that adding more government to health care would ‘bend the cost curve’. It turned out they were right. They did bend the cost curve, but they bent it up instead of down. Now they want to add even more government to reduce costs! That’s like solving your drinking problem by drinking even more. Believe me, I’ve tried that, and it just doesn’t work! My friends on the left, don’t you think it’s time for an intervention?”
Boy, they sure fixed that problem with their phantom HCR legislation. Our government is just kidding right? How could any institution be more corrupt and inept?
Don’t forget that when the tax preference for employer health care is removed, the amount paid for health insurance will also be subject to employment tax. For the current average $12,000/year plan, that will cost an extra $1,836 in employment tax (using the 15.3% self-employed/ employer plus employee rate).
Which front pagers, and links please?
Considering the fact that the prescription medication I’m on costs about $18.00 per pill in the US and the generic version I get from India has a maximum suggested retail price of $0.27 per pill, I can sure as hell guess!