Just facts [extensive documented stats on healthcare]

justfacts.com ^ | Just Facts.

[daniel1212]

Between 1960 and 2014, healthcare spending in the United States increased:

from an average of $146/person per year to $9,532 (by 65 times).

from an inflation-adjusted average of $1,172/person per year to $9,544 (by 8 times).

from 5.0% of the nation’s economy (gross domestic product) to 17.5% (by 3.5 times).[1]

* In 1942, the price for a maternity room at Christ Hospital in Jersey City, NJ was $7.00 per day.[3] Adjusting for inflation, this amounts to $97.29 in 2011 dollars.[4] In 2011, the price for a maternity room at the same hospital was $1,360 per day.[5]

* In 1980, the average price for a typical hospital room in the U.S. was $127 per day.[6] Adjusting for inflation, this amounts to $368 in 2015 dollars.[7]

* In 1988, Mutual of Omaha insurance company paid an average of $270 per day for all types of hospital rooms (such as medical/surgical, intensive care, maternity, etc.). Adjusting for inflation, this amounts to $545 in 2015 dollars.[8] [9] [10]

* In 2002, Mutual of Omaha paid an average of $748 per day for all types of hospital rooms. Adjusting for inflation, this amounts to $992.22 in 2015 dollars.[11] [12]

* A 2015 survey of twelve hospitals in Ohio (where state law requires hospitals to publish their prices) found that the daily price of a typical hospital room ranged from $887 to $3,165, with the average being $1,822 and the median $1,612.[13]

Families with 100% coverage spent an average of 16% more on healthcare than families with 75% coverage, 22% more than families with 50% coverage, and 58% more than families with 5% coverage.

Using mathematical “techniques better suited to such data,” families with 100% coverage were predicted to spend 24% more than families with 75% coverage, 49% more than families with 50% coverage, and 45% more than families with 5% coverage.[17]

The increased spending that occurred under the plans with higher coverage had “little or no” effect on health outcomes except for the poorest 6% of the population.[18]

In 2010, the average payout per medical malpractice claim for MDs [medical doctors] and DOs [doctors of osteopathic medicine] ranged from a low of $109,000 in West Virginia to a high of $1,258,000 in Wisconsin.[106]

* “Defensive medicine” is defined by the American Academy of Orthopaedic Surgeons as “the practice of ordering excessive or unnecessary tests, procedures, visits, or consultations solely for reducing liability risk to the physician, and/or avoidance behavior, the practice of avoiding high-risk patients or procedures.”[107] During 2015, federal, state, and local governments in the U.S. spent $1.4 trillion on health and healthcare programs. This amounts to 7.8% of the U.S. gross domestic product, 24% of government current expenditures, and $11,313 for every household in the U.S.[150] [151]

* Relative to other types of government spending in 2015, healthcare spending was:

the same as spending for income security (such as Social Security, unemployment, and cash welfare). 58% higher than spending for education.

87% higher than spending for national defense.

4.1 times higher than spending for public order and safety (including law enforcement, courts, prisons, fire protection, and immigration enforcement).[152]

* Between 1959 and 2015, federal spending on health and healthcare programs rose from 3% of total federal spending to 29%: In 2014, 27% of all federal government spending (except interest on the national debt) and 29% of all federal revenues were spent on mandatory healthcare programs.[156]

* Under the federal government’s current policies,[157] [158] the Congressional Budget Office estimates that the share of federal revenues spent on mandatory healthcare programs will increase from 5% in 1970 and 16% in 2000—to 41% in 2030, 60% in 2015, and 77% in 2090: The Medicare program was founded in 1965 to provide health insurance for people aged 65 and older. It was later expanded to cover younger people who are permanently disabled.[160] [161]

* In 2013, Medicare provided health insurance for almost all Americans aged 65 and over (roughly 43 million people) and about nine million permanently disabled individuals under the age of 65.[162] In total, these Medicare enrollees represent about 16% of the U.S. population.[163] In 2014, Medicare spent about $613 billion.[170] This amounts to 15% of all federal expenditures and 18% of all federal revenues.[171]

When Medicare was established in 1965, the period life expectancy for 65-year-old Americans was 12.9 years for males and 16.3 years for females. By 2014, these figures had risen to 18.1 years for males and 20.6 years for females. This amounts to a 40% increase in the time spent collecting Medicare benefits for males and a 26% increase for females.[193] As these life expectancies have increased, the age at which people become eligible for Medicare has not increased.[194]

According to Social Security Administration projections, by 2030 the period life expectancy for 65-year-old Americans will rise to 19.5 years for males and 21.7 years for females. This would amount to a 51% increase in the time spent collecting Medicare benefits for males and a 33% increase for females.[195]

The Affordable Act (ACA):

expands Medicaid eligibility to all individuals under the age of 65 in families with incomes below 138% of federal poverty guidelines (for example, a family of four with income below $33,534 in 2016) without regard for any assets they have.

gives presidential appointees, such as the Secretary of Health and Human Services,[382] at least 40 regulatory powers that have the force of law.[383] [384] Examples of such include the authority to:

establish criteria that health insurers must meet in order to sell insurance to consumers who receive the federal subsidies described above (for people with income up to 400% of federal poverty guidelines). Plans that meet these criteria are referred to as “qualified health plans.”[385] [386] [387]

mandate the types of benefits that health plans must cover.[388] [389]

mandate “mechanisms to improve health care quality” that health care providers must implement in order to receive payments through qualified health plans.[390]

define what constitutes “unreasonable increases in premiums for health insurance coverage” and “establish a process for the annual review” of such increases.[391] [392]

“develop and impose appropriate penalties” on health insurers companies for non-compliance with certain provisions of the act.[393] waive various provisions of the law.[394]

creates roughly 45 new governmental boards, councils, committees, and commissions in addition to an unknown number of other entities such as trust funds, programs, systems, and risk pools.[395]

imposes or increases 10 types of taxes, fees, and penalties (not including the fines described above for not having or providing health insurance).

The Children’s Health Insurance Program (CHIP) was established via federal law in 1997 to help states provide health insurance to uninsured, low-income children living in families with income above Medicaid eligibility limits.[274]

* Like Medicaid, the federal and state governments share in the cost for CHIP, and states have latitude in setting eligibility criteria and deciding which healthcare services to cover. Depending upon the state, the federal government paid between 65% to 82% of CHIP costs in 2015.[275] [276]

* In 2016-2019, the 2010 Affordable Care Act (a.k.a Obamacare) raises the share of CHIP paid by the federal government by 23 percentage points per state, up to a maximum of 100%.[277]

The legislation that created CHIP states that the “purpose” of the program is to provide “child health assistance to uninsured, low-income children … under 19 years of age … whose family income is at or below 200 percent” of the federal poverty line. [278]

In 2015, the median income eligibility limit for CHIP was 255% of the federal poverty level or $61,837 for a family of four.[282] [283]

Since 2014, Obamacare has mandated that families can have unlimited financial assets and still be eligible for CHIP.[284] [285]

* Laws passed in 2009 and 2010 reauthorize and increase CHIP funding for the years through 2015.[290] The 2009 law also made legal immigrants immediately eligible for CHIP, overriding a previous requirement of a five-year waiting period.[291]

In 2009, CNN uncritically reported the following statement about the healthcare debate by Senate Majority Leader Harry Reid: There is no business in America that makes more money than the insurance industry.[460]

In 2008 (later data not available), the health insurance/managed care industry had a 2.2% net profit margin, which ranked 35th out of 53 top industries. The industry with the highest profit margin was network/communications equipment, which had a 20.4% profit margin.[461] [462]

In 2010, the average EBITDA margin for health insurance/managed care companies in the S&P 500 was 37% lower than automakers, 52% lower than brewers, and 69% lower than telecom companies:

[daniel1212]

Excerpts from http://www.justfacts.com/healthcare.asp. Much to digest. Anatomy of a tail spin.

[Skooz]

BFL

[JimRed]

Between 1960 and 2014, healthcare spending in the United States increased:
from an average of $146/person per year to $9,532 (by 65 times).
from an inflation-adjusted average of $1,172/person per year to $9,544 (by 8 times).
from 5.0% of the nation’s economy (gross domestic product) to 17.5% (by 3.5 times).[1]

Question: Do those figures cover GOVERNMENT spending only, INDIVIDUAL spending only, or ALL spending combined?

[robroys woman]

The funny thing about “defensive” medicine is it often leaves the patient in worse shape, but at least they can’t sue anybody. Case in point:

I learned in the 80’s that C-Sections were becoming very common. The reason? If a doctor opts not to do one and something serious happens due to complications during birth, they can be sued for not doing a C-section. If they just do a c-section, the chances of complications are significantly reduced, and they get they added bonus of charging you for it.

This means there are a LOT of women going around with c-section scars because the doctor just didn’t want to get sued.

This is about more than just money

[robroys woman]

We left the american culture when we got rid of TV in 1997. And we further distanced ourselves the day obamacare became the law. That was 1/1/2014. We are both 63 and have not had health insurance since that day.

We have saved, after tax, around $50,000 on health insurance premiums and taken responsibility for our own health. We’ve not needed to see a doctor, though we do see the dentist one a year, at a cost of $125 a person including x-rays. We get our glasses at Costco and I’m getting a hearing aid there for $1,500.

If something really, really bad happens we use holistic methods (like my two friends that were cured of stage four cancer via the Gerson and some other method, which cost a couple thousand and a dramatic temporary diet change).

Or we die, which all human beings do, no matter how good their health insurance coverage. I supposed if I was not the Lord’s and this is all I had I’d feel differently about it. ;-)

[MarchonDC09122009]

Agree with your approach for the most part.
However, it’s Highly advisable you have catastrophic health insurance in case of serious accident, which could completely wipe out your assets.
Look into Liberty HeathShare.
It’s been around for 30 years and costs $299 / month for married couple. $500 deductible.
100,000+ members.
It’s been a god send.

[Carthego delenda est]

The Uniparty has shown ZERO interest in reducing actual healthcare costs, instead are gobbling up all the lobbyists gifts to ensure the lawyers, paper-pushers, and insurance companies keep on getting rich with their non-heathcare fees added on to every doctor’s visit and Rx purchase.

[robroys woman]

Thanks. That is very tempting.

I have to say that even considering health insurance now literally feels like a lack of faith in God’s healing powers. My wife got deathly ill the winter before last. The whole thing was taken care of by her and me and she came out of it fine. But two weeks were iffy. Prayer was the key.

Meanwhile, my brother in Seattle turned out to have the same thing. For him it was three weeks and a trip to the emergency room and a hospital room. The doctors could not help, but they were able to charge him and the insurance company several thousand dollars.

Meanwhile, I diagnosed and cured my own gout, and diagnosed and am working on a cure to my Capsulitus of the second toe.

Thing is, thanks to the internet and Google, there is very little need for a general practitioner. And the cool thing is that if you don’t have insurance, you don’t need a referral to see a specialist. If I need a doctor to look at my foot, I go to a specialist. And those kinds of visits cost a LOT less than a single month’s obamacare insurance premium. Plus, they don’t come anywhere near meeting the deductible. ;)

[PGR88]

When our mom passed away a couple years ago, when cleaning out her things, we found a rec’t from hospital for birth of our oldest sister in 1956.

$250 - for 7 days in hospital, including attending OB/GYN and anesthesiologist. Also included treatment of my sister for “jaundice.”

We estimated that Dad probably earned $4500-$5200 that year year as a white-collar manager in the personnel office at a large industrial plant.

About 5% of yearly average income to have a child. Seems reasonable.

Any guesses what a hospital would bill directly for same service today? I bet would be close to 100% of an average American’s salary $40-$50K.

We live in a corrupt world and country.

[daniel1212]

Between 1960 and 2014, healthcare spending in the United States increased: from an average of $146/person per year to $9,532 (by 65 times). from an inflation-adjusted average of $1,172/person per year to $9,544 (by 8 times). from 5.0% of the nation’s economy (gross domestic product) to 17.5% (by 3.5 times).[1] Question: Do those figures cover GOVERNMENT spending only, INDIVIDUAL spending only, or ALL spending combined?

I assume ALL spending combined?

[Sequoyah101]

When it comes to health care any expense is justified but not necessary.

Spending more money does not equate to better health. See below.

The numbers then inflated to now are worthless data. What matters is what it costs now compared to an inflation adjusted cost years ago. Somebody was just having fun with numbers.

“Families with 100% coverage spent an average of 16% more on healthcare than families with 75% coverage, 22% more than families with 50% coverage, and 58% more than families with 5% coverage.

Using mathematical “techniques better suited to such data,” families with 100% coverage were predicted to spend 24% more than families with 75% coverage, 49% more than families with 50% coverage, and 45% more than families with 5% coverage.[17]

The increased spending that occurred under the plans with higher coverage had “little or no” effect on health outcomes except for the poorest 6% of the population.[18]”

The only reason plans with higher coverage had any effect on the poor is that without their FREE high coverage plans they didn’t want to wait in line at the ER.

[daniel1212]

The funny thing about “defensive” medicine is it often leaves the patient in worse shape, but at least they can’t sue anybody. Case in point: I learned in the 80’s that C-Sections were becoming very common. The reason? If a doctor opts not to do one and something serious happens due to complications during birth, they can be sued for not doing a C-section. If they just do a c-section, the chances of complications are significantly reduced, and they get they added bonus of charging you for it. This means there are a LOT of women going around with c-section scars because the doctor just didn’t want to get sued. This is about more than just money

Indeed.

[MarchonDC09122009]

EXCELLENT informative post!
No other US business can get away with refusing transparency of cost disclosure, ie: provide an accurate estimation of what entire medical procedure treatment will cost a customer.

Here are the major culprits driving US healthcare skyhigh towards a marxist single-payer state system: (along with US pharma, med-device suppliers, trial attys and FAT UNHEALTHY smoker slob patients that steal 80% of hospital beds for “lifestyle health related cardio-vasular diseases.)
Why Hospitals Mark Up Prices by 1,000 Percent - Newsweek

www.newsweek.com/why-hospitals-mark-prices-1000-percent-343006 Proxy Highlight

Jun 15, 2015 ... Why Hospitals Mark Up Prices by 1,000 Percent. By Wendell ... (Chargemasters are lists of all the items and services hospitals bill for. Hospitals ...
Many U.S. hospitals mark up prices 1,000 percent: study - Reuters

www.reuters.com/article/us-usa-hospitals-prices-idUSKBN0OO2C920150608 Proxy Highlight

Jun 8, 2015 ... Many U.S. hospitals mark up prices 1,000 percent: study ... markups, but in the past hospitals have said list prices, shown on a “chargemaster,” ...
Some Hospitals Marking Up Prices More Than 1,000 Percent - 2015 ...

www.jhsph.edu/news/news-releases/2015/some-hospitals-... Proxy Highlight

Jun 8, 2015 ... The 50 hospitals in the U.S. with the highest markup of prices over ... Many hospital patients don’t actually pay the “charge master” or full price.
How Hospitals Mark Up the Cost of Over-the-Counter Supplies Like ...

https://sandiegofreepress.org/2013/03/how-hospitals-m... Proxy Highlight

Mar 17, 2013 ... Chargemaster: Hospitals’ Killer App for Sucking Your Financial ... Cost of Over- the-Counter Supplies Like Aspirin and Q-tips as Much as 1000%.
50 US Hospitals That Mark Up Prices the Most - Live Science

https://www.livescience.com/51134-us-hospitals-mark-up-prices.html Proxy Highlight

Jun 8, 2015 ... Some hospitals charge more 1000 percent mark-up for certain ... more so than a hospital’s internal list of prices, known as the chargemaster.
Extreme Markup: The Fifty US Hospitals With The Highest Charge ...

content.healthaffairs.org/content/34/6/922.full.pdf%20html Proxy Highlight

Jun 24, 2015 ... In the United States, hospitals use the chargemaster, a list of .... This means that they are charging markups of more than 1,000 percent.
Study: Hospitals charge more than 20 times cost on some - JHU Hub

https://hub.jhu.edu/2016/09/08/hospital-markups-price-gouging/ Proxy Highlight

Sep 8, 2016 ... However, the relation between chargemaster markups and hospital revenue, and the variation in markups across hospitals and departments, ...
50 hospitals charge uninsured more than 10 times cost of care ...

https://www.washingtonpost.com/national/health-scienc... Proxy Highlight

Jun 8, 2015 ... Researchers said the hospitals with the highest markups are not in pricey ... it costs the hospital $100, they are going to charge you, on average, $1,000. ... In the United States, hospitals have the chargemaster, a lengthy list of ...
50 hospitals with markups of around 1,000 percent - CBS News

www.cbsnews.com/news/50-hospitals-with-markups-of-around-1000-percent/ Proxy Highlight

Jun 8, 2015 ... At these hospitals, prepare to pay markups of 900 percent — or more ... compared hospitals’ so-called chargemasters — lists of procedure codes ...
Irrational Drug Prices Being Charged by Hospitals Continue to ...

www.panaceainc.com/enews/61-finance-and-reimbursement... Proxy Highlight

In particular, one hospital’s charge of more than $13,000 for a dose of the ... Because of this payment method, a hospital is incentivized to mark up a drug to ...

[daniel1212]

We left the american culture when we got rid of TV in 1997. And we further distanced ourselves the day obamacare became the law. That was 1/1/2014. We are both 63 and have not had health insurance since that day. We have saved, after tax, around $50,000 on health insurance premiums and taken responsibility for our own health. We’ve not needed to see a doctor, though we do see the dentist one a year, at a cost of $125 a person including x-rays. We get our glasses at Costco and I’m getting a hearing aid there for $1,500. If something really, really bad happens we use holistic methods (like my two friends that were cured of stage four cancer via the Gerson and some other method, which cost a couple thousand and a dramatic temporary diet change). Or we die, which all human beings do, no matter how good their health insurance coverage. I supposed if I was not the Lord’s and this is all I had I’d feel differently about it. ;-)

Have not had any insurance for 30+ years, and only saw a doc once, thanks be to God, and "whether we live, we live unto the Lord; and whether we die, we die unto the Lord: whether we live therefore, or die, we are the Lord's. For to this end Christ both died, and rose, and revived, that he might be Lord both of the dead and living." (Romans 14:9) Glory to God.

[daniel1212]

$10,345 per person: U.S. health care spending reaches new peak ...

[Honest Nigerian]

Drum roll, please ...................

It’s Bush’s fault.

cymbal crash!!

[robroys woman]

It’s a completely different mindset, isn’t it? :)

[Paradox]

I had an accountant do my taxes about 20 years ago, and he was working on a book about this very thing. He sad me down and showed me the numbers, and even 20 years ago they were eye-popping. Much worse today.

Its the Law of Unintended Consequences again. Bites you every time.

[daniel1212]

Its the Law of Unintended Consequences again. Bites you every time.

Well said. Thanks.