Health-care costs soar at an unsustainable pace
Health-care cost trends in this country are unsustainable and are driving a whole range of major challenges, from our growing federal and state budget problems to the competitiveness of U.S. business in international markets to the decline in the economic power of the middle and working classes.
Take a look. The first chart, below, comes from a Kaiser Foundation report just released today. It found that health-insurance premiums had risen 113 percent between 2001 and 2011, and worker contributions to health insurance had risen by 131 percent. Family health-insurance premiums rose by 9 percent alone in 2011.
The second chart, based on the most recent data from the 34-nation Organization for Economic Co-operation and Development, documents the disadvantage this country faces internationally. We do not, by most measures, have the world’s greatest health-care system, but we undoubtedly have the most expensive. These trends constitute a major “tax” on our nation’s productivity, competitiveness and quality of life.
Chart by Jay Bookman, AJC
The countries listed above are representative of trends in most of the OECD. They manage to provide health care to their elderly and their poor, and do so at much cheaper cost. What do they know that we don’t? Are we so handcuffed by jingoism and inertia — an inertia compounded by those who profit quite nicely from the current system, and want no change — that we are incapable of responding?
– Jay Bookman
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320 comments Add your comment
dbm
September 28th, 2011
5:16 pm
Sometimes a consistent statism gives more efficient results than an inconsistent statism such as we have now. This is one reason why statism, once started, tends to grow.
Part of the cause of this is FDR’s wage and price controls. This made it necessary for employers to find other ways than wages to compete for workers; one such way was health benefits. This had two effects. It contributed to the tie between health insurance and employment that has caused so many problems and helped get us in this mess. It made it tempting to offer pay-everything insurance, removing any direct or efficient financial incentive for consumers to look for ways to control costs.
Old Dawg
September 28th, 2011
5:29 pm
Until health insurance companies have to comply with anti-trust laws, this will continue to happen. Also, health care costs need to be reined in. Why don’t we have a public health program like energy has an agency (public service commission) it has to submit price increases to?
The longer this continues, the more businesses will stop offering health insurance, close or go off-shore.
At some point the whores who represent us in Washington and in our state capitals need to realize they can’t listen to the lobbyists from insurance and health care companies and actually work to solve the problem instead of continuing it!
benny
September 28th, 2011
5:47 pm
Many have asked on a fix. Not sure putting the government in charge is the answer. But, I do believe that they could have set forth the incentive. There are many people that have degrees in biology. It is not a well paying field but very enjoyable. Why not offer these people the opportunity to go into medicine? They could be the general practicioners (?) that are becoming extinct. They could also fill the Physician Assitant role. They could then handle the basic day to day coughs, sneezes and yuks. Basically, a first line of defense for a basic office visit. I went to the doctor for the flu last year and he had me scheduled for a battery of tests, a heart test, xrays, etc. I just wanted to feel a little better as the flu ran its course. I would have gone to a clinic if we had one in town but we do not even have a GP. We have an internal medicine doctor filling the role of GP. I had to pay $85 for a visit where he spent most of the 5 minutes filling out the forms for all the tests. HOW STUPID!!!!!! I would have gone to a nurse if she could have prescribed me something stronger than over the counter drugs which are not real effective.
Bacchus
September 28th, 2011
6:07 pm
Since 2009, my health insurance premiums have increased 48%. I’ve been with the same provider and on the same plan. Every time they raise the raites, the reason is due to “increased costs of care”, blah blah.
Change I’d rather not believe in …
OldTimer
September 28th, 2011
7:05 pm
You’re not going to be able to beat these folks so you only have two choices. Either join them or become a martyr.
The first option is much more fun.
clem
September 28th, 2011
7:08 pm
sign the petition at getmoneyout.com to get money out of politics….not total solution but a start
dbm
September 28th, 2011
7:36 pm
clem
September 28th, 2011
7:08 pm
As long as we have mixed-economy statism, which results in pressure-group warfare and also in government having a lot of power over business, we will have money in politics one way or another. There are two ways to get money out of politics. One is to have consistent freedom, that is, laissez-faire capitalism, and to have enough people recognize that we need to keep it that way. The other is to have authoritarian government with no say for the people; that way politics will have power mongering rather than money mongering, and there will be politics in money but not money in politics.
Matt
September 28th, 2011
8:12 pm
Did you draw those charts with your box of crayons Bookman?
Ol' Timer
September 28th, 2011
8:47 pm
First, it was thought that hospitals and doctors were making too much money, so manage care was created to control those costs. Now, the money goes to manage care and insurance companies instead of doctors and hospitals.
Second, companies will dramatically cut back on health insurace for employees requiring more out of pocket for reduced coverage — and probably discontinue this perquisite in the near future.
Third, people who are uninsured and sick go to emergency rooms for their primary care — the most expensive department in the hospital. When they can’t or don’t pay, who do you think fills the gap.
Finally, it’s unconscionable that so many people in this great country can’t afford and don’t have healthcare coverage. Many of the unemployed are finding insurance on the open market just too expensive and are doing without coverage. This is an outrage. The out-of-control healthcare costs have to be brought under control and a single payor plan is the way to do it.
Roger
September 28th, 2011
8:49 pm
I assume the price increases they show are for Group Policies. Because my private BCBS policy has gone up 400% over the last 11 years.
I have no problem with paying for health insurance, butttttttt, I have learned that in too many situations prices are kept artificially high. Just compare the cost of many service’s at a Doc in a Box, to a hospital? And look out for the $22.00 Aspirin at the hospital?
lynnie gal
September 28th, 2011
9:00 pm
We lost our chance when the Public Option was abandoned two years ago. The majority of Americans wanted a public option, one that would remove them from the private, for-profit health insurance industry. But the Democrats didn’t have the votes to make it happen when Scott Brown was elected to Kennedy’s seat. Massachusetts has a public healthcare system that Romney set up and it works just fine. But, the tea party formed, bankrolled by billionaires like the Kochs, and they were determined that average Americans will not have have health care unless it’s tied to their jobs. Many of the tea parters were and are on Medicare so they didn’t give a damn about anyone else save their own old hides. But now, ironically, Medicare is being cut by the same tea party legislators that these geezers helped put into office. I say, Medicare for All is the only fair thing.
Billy
September 28th, 2011
9:55 pm
Gale,
To reply to your snark comment, all of the democrats out there and anyone that thinks that health care should be run and paid for by the government listen to this. The reason that your health care costs (premiums, deductibles and other misc. expenses) are so high and keep increasing is because YOU are paying for the MF’s that choose to not pay for health care and go to the hospital or the illegals that do not have health insurance and use the emergency room for their quarterly health check-ups. Also any time an uninsured gets a sniffle guess where they go? You got it, the emergency room. Do you think it costs $500 if someone gets shot and goes to the ER, I don’t think so, try $10-20K. The bill has to get paid so they just tack that on to your bill. If you want the US to be like other countries with respect to health care, then don’t expect any sort of ease in making an appointment. Have any delusions of a government run and paid dental plan that covers everyone for EVER citizen. I have one thing to say “Austin Powers”
END OF LESSON. If this fact pisses you off to then you should vote GOP in 2012.
Jay
September 28th, 2011
9:58 pm
“The reason that your health care costs (premiums, deductibles and other misc. expenses) are so high and keep increasing is because YOU are paying for the MF’s that choose to not pay for health care and go to the hospital or the illegals that do not have health insurance and use the emergency room for their quarterly health check-ups. Also any time an uninsured gets a sniffle guess where they go? You got it, the emergency room. Do you think it costs $500 if someone gets shot and goes to the ER, I don’t think so, try $10-20K. The bill has to get paid so they just tack that on to your bill.”
That’s an EXCELLENT explanation for why the individual mandate is necessary. Thanks, Billy.
Ed
September 28th, 2011
10:12 pm
Bosch – And who pays the government so they can pay for all the free healthcare? Only the 50% of the population who pay 100% of the taxes. Healthcare is not free anymore than groceries are free. Are groceries a right too?
Ed
September 28th, 2011
10:14 pm
Big Brother – Free healthcare is a big lie. Nothing is free. Someone has to pay for goods and services to exist. Unfortunately we have only 50% of the population paying 100% of the federal and state bills. Let’s implement a flat tax on everyone or look to a combination of a flat tax and a national sales tax. At least with t he national sales tax, those visiting from other countries will help pay our bills.
Ed
September 28th, 2011
10:20 pm
Obviously something needs to be done. No one has the ultimate solution it seems. “Not for profits” are making as much of a profit as the “for profits”. Otherwise they would be out of business. Our standard of living here is much higher than other countries, thus our salaries are higher and salaries/benefits account for 50% or more of total healthcare costs. No one wants to take a pay cut do they? Balance the budget, pay off our national debt, require a balanced budget. Maybe then we can provide more for those who cannot pay for themselves. We should take care of those who are disabled and aged.
Lynn
September 28th, 2011
10:25 pm
The costs added by the PPACA (Obamacare) mandates contributed significantly to rising health care costs this year. As an international consultant who has worked with health benefits around the world, the unhappiness that citizens of countries with national health care experience is huge. Almost all want a private plan to supplant or supplement the national health care and want their employers to pay for it.
Something needs to happen with health care costs. The first step is personal responsibility. You must buy insurance. If you don’t and suffer a major illness or accident, then as a society the consequences need to be severe. You will repay the cost of your care even if it takes decades. You made the choice to take the risk and now you suffer the consequences. You can’t place this additional burden on the 50% who currently pay taxes. It is a shared burden.
And before you tell me someone can’t get insurance, there are now high risk pools in every state for those with a serious health condition. The maximum premium is very low for the risk and subsequent cost to the risk pool. The taxpayers are subsidizing the premiums, but it does place some accountability on the individual.
bill
September 28th, 2011
11:02 pm
soooo, the government should provide health care?? y’all do know the government is broke, right? so you are too sorry to work and make your own way and I choose to work and the government takes from me and gives to you, right?…good deal for you …not so much for me!!!
Gerald Banks
September 28th, 2011
11:09 pm
There are some dumb butth$%#s out there. Obama tried to solve some health insurance problems. How in the peace is it his fault… You nor your parents didn’t build this country by themself… We all help!!!!
Billy
September 29th, 2011
8:47 pm
Jay,
I wasn’t arguing for the individual mandate. If someone wants insurance then they should get it. I DO like the idea that people can not be denied insurance; although if they are unable to find private insurance then they should be issued a government policy. The point I was actually trying to make with out blatantly saying it was that if you do not have insurance then you do not get coverage, period. And if we can’t get that passed through, then you should have to prove citizenship in order to get your free ER visit. If you and Susan Sarandon cry that this is unfair then bite me and move to Canada, or better yet why don’t you defect and claim citizenship in Afghanistan!