A Prescription For the Health Care Crisis

All the screaming about the U.S. health care crisis, many are finding it difficult to focus perhaps too low to cause problems confront us with sense is going on. I own the tone of the discussion (although I understand it --- People are afraid) as well as the disappoint bemused that anyone will understand enough to know themselves best to improve our health care system To qualify simply because they have suffered, the people who have spent whole careers studying it (and I mean politicians) not sure what to own are not.

Albert Einstein is reputed to have said that one of the world, he spent 55 minutes defining the problem and only 5 minutes to solve it was to save hours. Our health care system is more complex than most who are offering solutions admit or recognize, and we define problems and their causes well to focus our efforts on understanding the long, any We just make them worse is likely to change as they are better.

While I as a physician in the U.S. health care system has worked since 1992 and primary health care as an administrative director for seven years worth of experience, I do not think I own the viability of the well tips The evaluation of qualified "to improve our health care system is heard. I think, however, I describe at least some of their problems, their causes get reasonable estimates, and some general principles that should be applied in an attempt to solve them can contribute to the discussion outline .

Cost problem

No one disputes that health care spending in the U.S. increased dramatically. Medical and Medicaid (CMS) services, health care spending per person for the center by the end of 2009 compared to $ 356 per year, it was in 1970 per capita per year by 8160 is projected to reach $. This increase roughly 2.4% over the same period GDP increased faster than I. However, GDP varies from year to year and therefore an imperfect health care costs increase as compared to other Spend a year to the next assessment is a way, we still have over the past 40 years, the percentage can conclude that our national income data (personal, business, and government) with us on health care has been spent has increased.

Despite what most think, it may or may not be bad. It all depends on two things: why health care spending relative to our GDP is growing and how much value we get for every dollar we spend is.

Why health care has become so expensive?

It would be difficult to answer than many believe. (8.1% on average per year from 1970 to 2009, calculated from data above) to increase health care costs rise in inflation (average 4.4% over the same period), we can not attribute has exceeded inflation increase the costs alone. Health care expenditures closely to a country's gross domestic product (rich country, and it spends on health care), the United States in yet another non (Figure 3) is known to be associated with.

On the health care costs for people over the age of 75 due to the (five times what we spend on people between the ages of 25 and 34 do?) In a word, no. This demographic trend studies show only a small percentage of health expenditure growth points.

The monstrous profit health insurance companies are raking in due to? Probably not. Of course it's hard to know for certain as not all insurance companies are publicly traded and therefore the balance sheets available for public review. But Aetna, the largest publicly traded health insurance companies in North America, a 2009 second-quarter profit of $ 346.7 million, which, if projected out, nearly 19 million people they insure an annual profit of almost $ 1.3 billion predicted reported. If we assume that their profit margin is the average for your industry (even if false, it is not likely to be orders of magnitude different from the average), all private health insurance companies in the U.S., the 202 million people insured The total profit (bullet point 2) in 2007, will come to about 13 billion dollars a year. In 2007, total health care cost $ 2.2 trillion (see Table 1, page 3), a private health care industry about the benefits of total health care costs of 0.6% yield (although the analysis of data from different years, mixes, This was probably number as may be allowed the possibility of any orders of magnitude) by are no different.

This is due to health care fraud? Fraud losses estimated as 10% of all health care expenditures as a result of high class, but it's hard to back up the data hard to find. Although a certain percentage of fraud is almost certainly undetected, is probably the best way to estimate how much money is lost due to fraud is by looking at how government actually right. In 2006, the 2.2 billion dollars, 2.1 billion dollars that year, total expenditure for health care (see Table 1, page 3) was only 0.1%.

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