Tag Archives: health insurance

The Wide Disparity of Pricing for Healthcare Services is Just a Taste of the Problems Yet to Come

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This past week, ABC News reported on the practice of the Northside Hospital System in Atlanta of charging outrageous prices for their services. They cited the bill of one patient where they did a line by line analysis of charges. What they found were many examples of line items for which the patient was charged exorbitant prices for things that the hospital could purchase through its suppliers for a tiny fraction of the cost. One of the most glaring examples was a pill for which the patient was charged several hundred dollars in spite of the fact that the hospital could purchase it for less than a nickel.

Hospitals across the country engage in such pricing strategies, to one degree or another, in order to make up for losses as a result of low reimbursement rates by health insurance, managed care companies, Medicare, and Medicaid and also as the result of the cost of doing business in a dysfunctional system.

This practice is considered a strategy of necessity by providers of many healthcare services simply because that is the way the fee-for-service, zero-sum billing game has evolved. Payers establish reimbursement rates that enable them to stay in business, which means making a profit. And, do not be confused by hospitals that claim to be not-for-profit for even these providers must be able make money if they want to stay in business. The only differences are the uses of the profits and the bank accounts into which the dollars must inevitably be deposited.

Every billable medical or hospital procedure results in high-stakes competition to determine where those dollars will end up. Health insurance, managed care companies and other payers set reimbursement rates and also make providers jump through hoops as part of the claims processing strategy to look for any reason to justify denial of the claim. This forces providers to develop coding and billing strategies to optimize their revenue generation and also requires them to file and refile claims. It is a zero-sum game in which there are winners and losers in the competition for each and every healthcare dollar, not counting the patients who almost always are losers in the billing game.

What charges are not reimbursed by the various third-party payers are then billed to patients. Some of the money is eventually collected and much of it must be written off. Families burdened by outrageous medical and hospital bills is the single greatest cause for most of our nation’s personal bankruptcies. The write-offs necessitate new and more innovative charging and billing strategies. It is a vicious circle that drives up the cost of care enormously. Although we have seen some improvement, in recent years, in the rate of increase of aggregate healthcare costs, for at least two full generation the rates of increase have been substantially higher than the Consumer Price Index (CPI). There have been many years when the rate of increase has been double- or triple the rate of the CPI. Higher costs require providers to increase prices, which requires insurers to increase premiums on a merry-go-round that is anything but merry to the patients.

When we think about the number of healthcare dollars that never end up in the hands of providers of actual medical, hospital, or ancillary care, it can be a staggering amount. The insurance, managed care, and government payers always underestimate the percentage of dollars that are allocated to the administration process relative to those spent on direct care to patients. That cost is not just the cost of doing business for the private and public payers (which for the private payers must include profits) it also includes every dollar spent by providers for the purpose of coding, billing, claims processing, and management of receivables.

It truly is an outrageous process but it is the inevitable companion to the practice of fee-for-service (FFS) medicine in a market driven by health insurers and other third-party payers and processors.

The process is so complex that, in spite of claims on the part of health insurance and managed companies to the contrary, there is no accountability. Incompetent and inefficient providers pay no penalty for their poor performance and both the best and the worst providers survive no matter what the level of patient satisfaction.

Free market forces, in the true sense of the concept simply do not function in healthcare.

The biggest problems in healthcare in America, whether speaking of quality, cost, or access are the inevitable outcomes of a system driven by health insurance, Managed, care and other third-party providers; both public or private.

That Obamacare or, more correctly, the Affordable Care Act, (or more appropriately the Affordable Health Insurance Act) commits us to a health-insurance driven market is a recipe for continuing and escalating disaster. The motivation of Obama and the members of congress who finally chose to act was admirable if misguided. We have tried to fix a system driven by forces that even our smartest people seem unable to comprehend with a solution that can only aggravate an already tragic reality.

It is, truly, a national embarrassment that so many citizens of what we consider to be the richest and most powerful nation in the history of the world must deal with illness and injury of themselves and their families without access to what we also describe as the highest quality healthcare on the planet.

What makes the situation most ludicrous is that it is our stubbornness and our prejudices that keep us from embracing a solution that will provide comprehensive healthcare and prescription drugs to every single American man, woman, and child, without relying on socialized medicine, at a cost that will save the American people trillions of dollars.

My book, Radical Surgery: Reconstructing the American Health Care System, lays out a healthcare plan that will give us everything we need, at a reasonable cost, without any of the things that the American people seem to fear, pathologically.

Don’t believe me? Check it out!

A Healthcare Story: A Health Insurance Victim

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A young woman in Indiana, twenty-eight years of age, seemed poised for a good life. She liked her job in a small professional office where she was respected for her consistent performance. She enjoyed the people with whom she worked and she was engaged to be married, in only a few months, to a young man with whom she was thoroughly in love. Life was happy, busy, and could hardly have been better so she paid little attention when she experienced occasional dizziness and a slight numbness in her left arm and leg. These symptoms were followed by blurred vision and headaches and, at the urging of her family and her fiancée, she went to her doctor.

Although she had no health insurance—her employer was a small business and offered no employee benefits—her physician was able to arrange for a stream of increasingly more sophisticated and more expensive diagnostic procedures and, a referral to a neurologist. The diagnosis was Multiple Sclerosis. By this time the young woman’s symptoms had progressed and her physician pronounced her disabled and unable to work. Reluctantly she quit her job—at that time she truly was unable to perform her duties–and applied to Social Security for a disability.

After a lengthy process, during which her symptoms began to abate, the application for disability was rejected by Social Security. Although she felt much better, and was able to return to work, she was told that the MS symptoms might recur and could be even more debilitating. She was now a twenty-nine year old woman whose life was not so promising. She was unemployed, thousands of dollars in debt, and lived with the fear her health could deteriorate at any time. Her fiancée had stuck by her during the ordeal but the couple was advised to postpone their wedding, as a husband would become liable for her indebtedness. Heartbroken, frightened, discouraged and deeply in debt, she filed for bankruptcy.

Eventually she found a new job – her previous one no longer available – and although she didn’t care for the work or co-workers nearly as well as her prior job, a group health plan was offered. Unfortunately her MS was ruled as a pre-existing condition that would not be covered, at least during the first year. The monthly payroll deduction for the health insurance premium reduced her take home pay by twenty percent.

This young woman had become a victim, not only of her illness, but also of the system. The healthcare providers who took the financial risk to provide care for this patient were left with little choice but to write off a portion of the charges for their service. Although not visible to the public, costs such as these must be born by the system and they fuel the fires of medical inflation. There is no such thing as a free service, and someone, somewhere must pay.

Are Free Market Forces Good for Healthcare?

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Contrary to popular belief, the problems with the American Health Care System are not the result of market forces run amok. In fact, just the opposite is true. The American health care system languishes because the forces of the free market are unable to exert their influence. Imagine, if you will, how our free market system would look if it functioned like our health care system.

Imagine that you are sitting at home, watching television, and something feels out of sync. You can’t put your finger on what it is you are feeling but it is nagging at you and keeping you out of sorts. After a few days, the problem seems to be worsening and you are really beginning to worry. Finally, you pick up the phone and place a call to your local retail professional and make an appointment.

On the appointed day you arrive at your local mall or shopping center and you describe your symptoms to your retail professional. Your retail professional listens intently, asks a few questions, and then diagnoses your problem and offers a treatment protocol to make you feel better. Your retail professional tells you that the problem is that your home entertainment system is not meeting your minimum daily requirements. As a solution, your retail professional tells you that what you need is a new home entertainment system with state-of-the-art technology.

Now, it just so happens that you retail professional has the perfect home entertainment system to sell to you and guess what? It’s covered by your retail insurance policy. In checking your benefits it turns out that you’ve already satisfied your deductible so your insurance is going to cover eighty percent of the total cost of your new system.

What your retail professional may not explain to you is that your home entertainment system exceeds the usual and customary charges for such items so the insurance is not going cover your retail professional’s full cost. She’s not worried, however, because there are a number of accessories she can sell to you that are covered and these will more than make up for the difference.

I know this sounds a little silly, but think about how our free market economy would work if the merchants with whom we do business would decide for us what we need and how much we are going to pay, and that we would be happy to accept their decisions without question because our insurance is going to pay for the merchandise, anyway. This is exactly how the healthcare system works today and we wonder why costs continue to rise at or above the rate of the Consumer Price Index.
The problem with the American health care system is not that doctors make too much money, the problem is that the incentives in healtcare reward the wrong behavior. The problem is not that health insurance companies, managed care, Medicare or Medicaid absorb huge chunks of our health care dollar, the problem is that these entities exist at all.

Think about it for a moment. If we really want to provide universal health care what value do health insurance, managed care, Medicare and Medicaid contribute? Don’t these entities exist to restrict access to care to only those who are eligible for coverage? Don’t these entities exist to limit care to only those services that are covered by our schedule of benefits and for which we have paid?

If we want to provide comprehensive health care to all Americans we have to change the way we think about our health care system. There is a solution but it resides outside the boundaries of conventional thinking.

Visit my website atwww.melhawkinsandassociates.com and check out my book, Radical Surgery: Reconstructing the American Health Care System. In fact, tell all of your friends about it.

Obamacare aka the Affordable Care Act Mis-Named!

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The Affordable Care Act, affectionately or not so affectionately called Obamacare has been misnamed. It should have been called the Affordable Health Insurance Act because it addresses the issues of healthcare, only indirectly.

What Obamacare does is allow people to purchase health insurance coverage for themselves and their families. “Allow” is not the right word, however, as the law is set up with penalties for families who do not enroll in a health insurance plan within a designated time frame.

The types of health insurance coverage that will be available to people will vary as each individual or family will be shopping for coverage that seems to best fit their unique requirements.

The ACA also asks health insurance providers to incur more risk by eliminating provisions like pre-existing conditions. Apparently, it is a trade off for being assured of getting more business.

We admire the sentiment of the act, which was intended to reduce the number of Americans who are uninsured and, therefor, not able to get the medical or hospital care that they need.The logic is somewhat confounding, however.

Rather than make health care available to all Americans as a right of citizenship, as so many other nations have done, it was decided to require everyone to have health insurance. How they arrived at the next logical conclusion, which was to penalize people who are unwilling or who think themselves unable to pay for the now more readily available coverage, is somewhat of a mystery.

The problem with Obamacare is that it will commit our nation to a future in which we are tied to the health insurance industry. Almost certainly, the people of other developed nations must be shaking their heads in bewilderment at those crazy Americans. I’m sure they must be asking themselves why we think it a good idea to do business with a middle man who only adds cost and complexity to the process of delivering needed healthcare to people.

It is hard to come up with a comparison that illustrates the absurdity of the concept but here’s an example that at least comes close.

Earlier I used the example of fire protection for citizens and asked the reader to imagine a scenario where the fire department pulls up to your burning home and asks to see your fire insurance card before they will turn on their hoses.

In most communities in the U.S., people have determined that everyone deserves fire protection and that the community will pay for that protection with tax dollars.

I have heard of a few communities where citizens are asked to pay a direct fee for fire protection. Now imagine that, in these latter communities, a problem has developed because not everyone is willing to or can afford to pay the fee for their fire protection. This theoretical community could decide to solve the problem the way most American communities have, by paying for fire protection with local tax dollars even if this initially requires an increase in property tax rates, the adoption of some type of local option income tax, or even some type of earmarked sales tax. Whatever the method of taxation, these communities have made fire protection a right of citizenship.

Now, lets consider that there is another community that still requires individual property owners to pay a separate fee for fire protection and that this community is also concerned that not everyone seems willing to pay for fire protection. The leaders of this community are not willing, however, to make fire protection a right of citizenship in their community.

Instead, someone comes up with the idea that requires insurance companies to provide at least a minimal level of fire protection coverage, no matter what the condition of individual properties, and also requires all citizens to purchase fire protection insurance coverage or pay a penalty.

Now, it is difficult to imagine that any community would choose such an approach because common sense would dictate that it will almost certainly cost more to pay a middle man for fire protection insurance than it would be to pay for it directly, through tax revenue. After all, the middle man has to cover their operating costs and, because we live in a free market society, make a profit.

Why is it that so many Americans seem so wrapped up in their daily activities and challenges that they are unable to step back and think about what they are doing and why?

Consequences of our Action: No One to Blame but Ourselves

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Imagine that you are an employer and economic conditions have required you to cut back wherever possible. Some of you reading this won’t have to try very hard to imagine such a scenario.

Imagine how your employees would feel if your response to the need for belt-tightening was to freeze wage rates or possibly even cut wages and benefits. On the benefit side, imagine that you dropped health insurance coverage for your employees and their families and that you suspended all travel and training programs, much of which had been offered to help your employees qualify for opportunities for advancement within you company.

It is reasonable to expect that your employees would be disappointed, at the very least, and we can be certain that some would be angry and resentful. During hard times, however, people understand that sacrifices must be made and the majority of your people would not lose their trust and respect for their employer or for you and your leadership.

Now, let us add a new variable to the equation. Let us assume that the members of the management team have not been asked to make corresponding sacrifices, even in this difficult economy. Imagine, in fact, that your management team is still eligible for the same salary increases and bonuses that were common when times were good. Imagine also, that the management team got to keep their executive health package and that they routinely attend training programs, seminars, and conferences in many locations around the U.S. and the world.
How would these factors affect the morale of your employees not to mention their loyalty to their company and its leadership team? Would they still be willing to endure the sacrifices they have been asked to make? Would they still be committed to the long-term best interests of your organization?

We all know, at least at an intellectual level, that such decisions on the part of management would have huge consequences with respect to their ongoing relationship with their people. No doubt many would begin looking for new opportunities.

Now, let us take a step back and think about the current reality about the way the federal government, particularly Congress and the executive branch, treat the American people at the low end of the economic continuum.

Whether these Americans are minimally employed, unemployed, on welfare or disability, depend on Medicaid or Medicare, or are on a fixed retirement income that depends almost totally on Social Security; every time the government feels the need to reduce spending it is the people in this group that are asked to take the hit. How do you think these people feel when Congress refuses to even consider asking the wealthy to pay a little more in taxes.

These Americans cannot get decent healthcare for their families, ObamaCare not with-standing, while they read about the extravagant health plan that Congress creates for themselves and their families. They also read that virtually every other developed nation on the planet considers healthcare to be a right of citizenship and provides comprehensive healthcare and prescription drugs for their people.
In the interim the poor, the unemployed, and the underemployed citizens of what is considered to be the richest and most powerful nation in the history of the world are asked to believe in an American dream that is little more than illusion to them.

These people are told to take advantage of the opportunities of this great nation and that an education is the ticket to the American dream. What these American know to be true is that getting a good education is a myth when they are asked to send their kids off to public schools that have embarrassing failure rates and that seem to chew their children up and spit them out.

As a result, these Americans no longer believe in the American dream and they no longer teach their children that the dream exists. Neither do they teach their children that getting an education is important and something for which they should work hard and make sacrifices. Not surprisingly, the children of these Americans arrive at their first day of school with precious little motivation to learn and are poorly prepared to succeed. Rather than accept responsibility as a partner with their children’s teachers and principals for the educational success of their children, these mothers and fathers look at school as a form of free day care that keeps the kids out of the house for eight hours a day, five days a week.

They see an educational process that is focused on failure. When their children struggle to understand their lessons, rather than take extra time to make sure their kids understand, they see their children pushed prematurely from one lesson to the next by teachers who do not seem to care. The result is that their children fall further and further behind until they are so hopelessly lost that they give up on themselves. They begin to lose all hope that they can catch up with their classmates and they learn quickly that the surest way not to suffer the humiliation of failure is to avoid participation. The rest of us sit back in indignation, clueless to the dynamics of this reality.

The parents of these children understand what their children are feeling because it is the very same thing they felt when they were still in school. As a result they refuse to cooperate with their children’s teachers because they view those teachers as adversaries and as tellers of lies; as so-called professionals who simply cannot be trusted to do what is best for their children.

As this cycle of failure repeats itself semester after semester and year after year, why do we seem surprised that these children grow up and give birth to a whole new generation of children who are reared in an atmosphere of hopelessness and powerlessness.

Other Americans become frustrated with these people because they rarely exercise their right to vote and seem unwilling to accept the responsibilities of citizenship. We cannot quite comprehend that these Americans feel this way because they have absolutely no faith that their voices make a difference. As a result these men and women are effectively disenfranchised. They feel hopeless and powerless to control the outcomes in their own lives and in the lives of their children.

The rest of us point the finger at these Americans, never fully comprehending that the reality in which these Americans live and endure is one that exists solely as a consequence of our own actions; of the decisions and policies of people who view themselves as leaders of the free world.

As we have pointed out in earlier posts, we are fast approaching a tipping point in which mainstream Americans can no longer bear the weight of the poor, the uneducated, the hopeless, the powerless, and the disenfranchised. As we sit by in our blissful ignorance and self-righteousness, that tipping point is rushing at us at the speed of desperation.

The Kids Are at their Games Again!

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Yes, we all know we need to get people off of Food Stamps!

Yes, even though it is the law of the land we know the Affordable Care Act, affectionately or not so affectionately known as ObamaCare, is a bad solution that will only make the system worse and drive up costs because of its reliance on the health insurance industry.

But, why do we continue to play the same games. Rather than put our heads together in recognition that our country is in trouble and because we need to find some new solutions that will actually work, we play like two kids on the beach who cannot get along. Rather than build something beautiful, together, we devote all of our energy to tearing down the other guy or gal’s sand castle.

On the beach, the only consequence of such child’s play is that parents have a source of frustrated amusement that Bob and Sally can’t play together.

In the real world, at the seats of power of the United States of America, such games hurt people who can least afford to be hurt and bring us no closer to meaningful solutions.

When we use ObamaCare as leverage to try to win budget concessions in an attempt to reduce federal spending, we create a stalemate that will eventually lead to a government shut down or sequester that will take money out of the pockets of hard-working Americans and benefits away from the unfortunate who have no way to make up the difference.
Of greater long-term consequence is the fact that such stalemates and painful cuts only deepen the resentment of the disenfranchised who have already become embittered; they are citizens who no longer believe in the American dream and who have become hopeless, and feel powerless to change the outcomes in their lives.

As long as this population of the disenfranchised continues to grow, the burden that must be carried by the rest of us will only grow with no end in sight. Somehow, rather than push them further away from mainstream America we need, desperately, to find a way to pull these people back in as productive citizens who can help us face the challenges of an uncertain and rather frightening future.

When are we going to find positive leaders who can find a way to set aside their differences and work together to find solutions to the enormously difficult challenges confronting us? When will someone say “enough!” and begin working to pull people to the table to do the important work of our government?

Our elected officials in both the executive and legislative branches of our government have become trapped in their daily work that they have forgotten to step back and look at the panorama. The only thing they know is attack and destroy what their opponents want to accomplish and to remain committed to fruitless process of incremental change in dealing with monumental challenges; challenges that cannot be overcome incrementally.

For those of you who are reading these words, you are not powerless. Provide some positive leadership and begin expressing you concerns directly to your elected officials. Tell them what you think. Just as importantly, encourage the people you know to roll up their sleeves and share in the work.

The clock is ticking and when the tipping point is reached there will be no second chances.

ObamaCare Approval Rating Continues to Fall

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Over the last few months there have seen and heard numerous reports that the public’s approval rating for ObamaCare, more appropriately referred to as the Affordable Care Act, has been falling steadily and now rests well below forty percent.

This should come as no surprise. Attempting to fix the American healthcare system by relying on the health insurance industry is like trying to fix Congress by making it easier for people to get re-elected.

The best we can say about the Affordable Care Act is that it was a nice try but one that was doomed to fail because its design was driven more by political considerations than by an understanding of how the healthcare system actually works. All ObamaCare really accomplished was to add another layer of complexity to a system that was already unimaginably complicated.

Until we are ready to acknowledge that health insurance is one of the biggest reasons why our healthcare system fails and, of course, that human beings actually deserve medical care when they are ill or injured, our tinkering with the healthcare system will only make it worse.
Focus on health insurance, if you will. Imagine for just a moment that we all could agree that there ought to be a way to see that all men, women, and children have access to health care when they need it.

Now, think about what health insurance actually does. The health insurance industry restricts access to care to only those people who are covered by a health insurance policy and it limits care to only those services that are specifically covered by that policy.
Assuming, again, that we want everyone to have access to healthcare, why would we be willing to pay the health insurance industry hundreds of billions of dollars to restrict care to a special few individuals and to limit care to only services that have been specifically identified?

And, yes, I’ve heard the argument that we over-estimate the amount of money siphoned off by the health insurance industry. Just the opposite is true. We grossly underestimate the degree to which the health insurance industry contributes to the rising cost of healthcare. The cost of health insurance is not just the result of that portion of our premium dollars that are retained by the health insurance industry after payment of claims to providers.

The cost of health insurance also includes every dollar that is spent by doctors, hospitals, nursing homes, out-patient surgery centers, rehab facilities, lab and imaging centers, home health care providers, and hospice providers to manage the process of filing insurance claims and fighting to get the paid what they are rightly owed.

We could also add the expenditures by employers as they manage the process of selecting health insurance or managed care providers, managing the enrollment process, and mediating grievances when their employees are unfairly reimbursed for care.

And, we could factor in how much the health insurance industry pays to influence legislators. And then, of course, there is Medicare and Medicaid.

If we could recoup every healthcare dollar expended by people like you and me, and also by our employers, that does not end up in the hands of actual providers of care we could afford to provide comprehensive healthcare and prescription drugs to every American man, woman, and child.

And, if you want “to hear the rest of the story,” as Paul Harvey used to say, take a look at my book, Radical Surgery: Reconstructing the American Health Care System Continue reading →

Act Now and Save $15 Trillion ($15,000,000,000,000)

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Let us forget, for just a moment, the debate about the Affordable Care Act or, as most of us would call it, the Obamacare Act, and focus, instead, on the issue of providing universal healthcare (translated to mean comprehensive healthcare for all American citizens and legal aliens).
No matter how we feel about Obamacare, we certainly would agree that the Affordable Care Act will not provide access to healthcare for every single American. The absolute most the Affordable Care Act will do is to make it easier for more Americans to purchase health insurance coverage. There also seem to be few illusions that Obamacare is going to cost less than what healthcare in America cost before implementation of the Affordable Care Act. Many will suggest that it will, in fact, cost more than what we have spent in years past.
The real question we should be asking, however, is “why are we unable to provide comprehensive healthcare and prescription drugs to every single American Citizen and legal alien?” In other words, why are we unable to provide universal healthcare?
For the moment, I want to forget about all of the altruistic reasons as to why the richest and most powerful nation in the world should have a healthcare system that meets the needs of all Americans, like virtually every other developed nation? I want to forget about these things because no one really seems to care.
We seem more concerned with rejecting the concept of socialized medicine than we care about all of the men, women, and children in the United States who are unable to gain access to and afford the medical care they require.
The fact is that the vast majority of Americans are unable to distinguish between the concepts of universal healthcare and socialized medicine. These to concepts are, in the minds of these people, synonymous. I suggest to you that it is this inability to differentiate the concept of universal healthcare and socialized medicine that is at the root of the entire problems with the American healthcare system.
Since no one seems to care about the suffering that so many Americans are made to endure, let us focus on the one issue about which everyone seems to care and that is the cost of health care in America.
From 2001 through 2011, the total annual healthcare expenditures of the U.S. grew from $1.2 Trillion to $2.8 Trillion. This represents an average increase of 8.8 percent per year. If that trend continues from 2012 to 2022, our annual healthcare expenditures will increase from $2.8 Trillion in 2011 to just under $7.1 Trillion in 2022. For the eleven calendar-year period from the end of 2011 until the end of 2022, we will have spent just under $56 Trillion on healthcare. Mind boggling, is it not?
In 2001, I wrote a book entitled, Radical Surgery: Reconstructing the American Health Care System, in which I proposed a healthcare solution that would provide universal healthcare without socialized medicine. In other words, I wrote that we could provide comprehensive healthcare and prescription drugs to all Americans and legal aliens without relying on government. Let me say it differently in order to alleviate any confusion. I proposed a way in which we could give every American access to whatever healthcare they required but that would involve neither federal nor state government in the healthcare delivery or decision-making process.
One of the features of this new system was a mechanism that would allow us to control the increases in the cost of care so that costs would rise no faster than increases in the Consumer Price Index (CPI). At that time I projected that the CPI would grow at a rate of 5 percent per year. At that rate, I suggested that healthcare expenditures would have risen to $1.86 Trillion by 2010. Had we been able to hold the increase in annual healthcare costs to 5 percent per year we would have saved an aggregate amount of $3 Trillion over the ten year period. Pretty significant savings, wouldn’t you say?
In fact, the actuall CPI growth during that same period was an average of 2.7 percent per year. Had we been able to control the rise in healthcare expenditures to actual inflation rates, costs would have grown only to $1.55 Trillion resulting in an aggregate savings over the decade of just under $4.5 Trillion. Even more impressive, don’t you think.
Now, let us assume that the actual rate of increase in healthcare costs between now and 2022 would remain the same as the previous ten year period (8.8 percent). In that case healthcare costs will rise to a staggering $7.086 Trillion by the end of 2022.
If, however, we were to implement the healthcare proposal presented in Radical Surgery: Reconstructing the American Health Care System, and inflation would continue to increase at the rate of 2.7 percent per year as it did over the last decade, our annual healthcare expenditures would rise to only $3.9 Trillion. Under this scenario, the aggregate saving in healthcare costs over the ten year period from 2013 to 2022, compared with the projected 8.8 percent per year increase, would be $14.9 Trillion dollars.
Forget altruism, just give me the money!
The question for the reader is a simple one. Can the American people afford to spend an extra $15 Trillion over the next decade for a healthcare system that will continue to leave a significant percentage of the American population with inadequate access to healthcare?