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"Americans spend more on health care than anyone". What if it is due to consumer choices?

Posted on 4/23/18 at 2:43 pm
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
69308 posts
Posted on 4/23/18 at 2:43 pm
I am not stating this as my own personal hypothesis or as some statement of fact, but I think it could be a factor in our health care spending.

Consumers are notorious for not being good at economizing and recognizing value. We overspend on pricey food, cars, tech gadgets, etc that aren't actually worth overspending on.

What if part of the reason we spend so much on healthcare is because some consumers opt for expensive, pricey medical devices, tests, new procedures, etc that aren't actually more efficient/better than the older, cheaper technology and methods?

If it does play a role, then I think that changes the healthcare debate a little bit.
Posted by MSMHater
Houston
Member since Oct 2008
22775 posts
Posted on 4/23/18 at 2:45 pm to
quote:

What if it is due to consumer choices?


I don't think this holds water considering third party payers and the proliferation of HMO's, referrals, and prior authorizations.



Posted by NIH
Member since Aug 2008
112671 posts
Posted on 4/23/18 at 2:45 pm to
Good point. I'll opt for whiskey over anesthesia the next time I go under the knife.
Posted by Cosmo
glassman's guest house
Member since Oct 2003
120319 posts
Posted on 4/23/18 at 2:46 pm to
People in this country go to the ED for headaches and feeling tired

Everything is overutilized
Posted by MSMHater
Houston
Member since Oct 2008
22775 posts
Posted on 4/23/18 at 2:48 pm to
quote:

People in this country go to the ED for headaches and feeling tired

Everything is overutilized



True, but to get the fancy diagnostics and pharmaceuticals that really hit our cost factor, they would have to pay for that, or have insurance and a diagnosis to cover the testing.
Posted by Cosmo
glassman's guest house
Member since Oct 2003
120319 posts
Posted on 4/23/18 at 2:58 pm to
quote:

True, but to get the fancy diagnostics and pharmaceuticals that really hit our cost factor, they would have to pay for that, or have insurance and a diagnosis to cover the testing.


False

They get it for free, dont pay and hospitals eat the cost/pass it on to people with insurance
Posted by starsandstripes
Georgia
Member since Nov 2017
11897 posts
Posted on 4/23/18 at 3:09 pm to
quote:

What if part of the reason we spend so much on healthcare is because some consumers opt for expensive, pricey medical devices, tests, new procedures, etc that aren't actually more efficient/better than the older, cheaper technology and methods?


Most plans don't allow this as the default approach.

Decades ago this was an issue, as technological advancement hit the medical arena and people thought it was a panacea. It wasn't, and it was recognized as a money waster.

The Medicare Act of 1965 is responsible for the current state of affairs. It dramatically increased demand because it dramatically increased subsidies. Demand goes up, prices go up. It's a vicious spiral. The govt caused all of this, and govt's reactions to the problems it caused have just made it all worse.

This whole medical care cost stuff is pretty simple to understand, as far as the root cause of dysfunction is concerned:
the govt got involved and changed the rules of the game.

No longer is it just a doctor and a patient working together to insure one is healthy and the other compensated for making that happen. No longer is there just an insurance mechanism in place to help facilitate this.

Now we have a govt overlord that greatly constrains the patient, the doctor, and the insurer. The govt is the only one of these parties that gets to enforce its part at the point of a gun. The govt costs people money due to compliance and makes the interaction among all key players too complex and too constrained.

Get the govt out of healthcare and healthcare will get fixed.

I believe we can fix 90% or more of the problems by getting govt out, save for a requirement to have a health savings account started by the parents, for each child they have. If you were to demand $2000 be deposited by parents by the time a child hits the 1st birthday, for instance, it could surpasss $1M easily by the time that child hit 55yrs old. Let people get insurance coverage as well, mainly to cover routine and non-emergent costs, or to have a catastrophic policy in place.

Medical costs hit a peak, typically, for the last 1-3yrs of one's life. That will typically be after someone passes 60yrs of age. That health savings account would be established by then. A compounding interest would make that account quite substantial by that time. For every person that has lifelong, exhorbitant medical bills, there will be 10 or more that have very few and costs would be covered in that manner. In all likelihood, there would be a surplus from such a fund. Also, if you hit massive costs when you are say, 34yrs old, payment can be made based on the projected growth in that health savings account, or out of pocket, or via use of a simple catastrophic insurance policy.

I think part of your federal tax liability each year should include $10 to fund an auditing body to investigate fraud and so forth at the federal and state level. That would produce around $2 billion each year for that purpose. That would make sure there is no fraud, but would allow providers to charge what they want - so long as they are delivering what they charge for (ie you can't charge for Tylenol if you don't give the pills to the patient). This would open up the market. If you want a boutique doctor, you can have one. If you want open heart surgery at some palacial estate hospital, you can do that - so long as you can afford the residual between your health savings account and your bill.

TLDR - get 90% or more of the govt influence out of healthcare and you eliminate just about all problems in healthcare.
Posted by thelawnwranglers
Member since Sep 2007
38791 posts
Posted on 4/23/18 at 3:10 pm to
We pay for all the drug research eot
Posted by MSMHater
Houston
Member since Oct 2008
22775 posts
Posted on 4/23/18 at 3:11 pm to
quote:

False

They get it for free, dont pay and hospitals eat the cost/pass it on to people with insurance


An ER stabilizes and sends home. ER's do not treat diseases.

If a patient with Hep C is admitted for hepatic ecephalopathy (i.e. confusion), they are given meds to fix the symptoms (lactulose), stabilized, and sent home. They don't get a transplant. Don't get Sovaldi. Don't even get scoped. Just sent home with a good luck and instruction to follow up with a clinician.

If you walk into the ER with a torn ACL, do they surgically repair it for you there?

If you walk into the ER with a knot in your throat that turns out to be throat cancer, do they treat you there? For free?

If you roll in with neuropathy secondary to your diabetes, do they arrange for your diabetes education, insulin pump and glucose monitoring? No. They refer you to me, and I charge you for all of it. Same with the GI that treats your HCV. Same with the ortho that repairs your ACL. Same with the oncologist who prescribes your chemo.



This post was edited on 4/23/18 at 3:16 pm
Posted by tigeraddict
Baton Rouge
Member since Mar 2007
11812 posts
Posted on 4/23/18 at 3:12 pm to
generic vs name brand meds are sometimes made in the same factory, on the same assembly line. just packaged differently.

even over the counter. ibuprofen vs Advil same med... people mostly buy the name brand
Posted by cahoots
Member since Jan 2009
9134 posts
Posted on 4/23/18 at 3:13 pm to
One problem is that ERs are forced by law to stabilize patients who don’t have insurance. Thing is, those patients often have emergencies because they don’t go to the doctor until things get to that point. Would be way cheaper to treat on the front end.
Posted by dantes69
Boise, Id.
Member since Aug 2011
2022 posts
Posted on 4/23/18 at 3:14 pm to
also, a lot of what we consume is banned in other countries, they deem it bad/unhealthy/harmful, we say go ahead, it's your life, enjoy.
Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
27563 posts
Posted on 4/23/18 at 3:21 pm to
quote:

They get it for free, dont pay and hospitals eat the cost/pass it on to people with insurance


If it makes you feel better to believe that canard, then more power to you. I think if you looked at the P&L's of some of he major hospital companies in the area , they do quite well even when the freeloaders are factored in. They have a before tax income of about 9 or 10% on average and since most of them are non(not for) profit, they get to keep it so long as it goes to bonuses and physical expansion.

1. They jack the price up because they can. In most areas now, there really is not any type of competition between hospitals. On the Northshore for example, you have the choice of Ochsner and Tulane with Ochsner having the bigger footprint and positioning. No competition means they can charge you pretty good

2. Like the Michigan man said, over utilization of resources. I know physicians that lament that they tend to see the same people over and over again for whatever. Had an Optho friend tell me about this one patient that any time her eye would itch she would schedule an appointment and wear out the front office only to be told that it was a mild allergy eye or some sort of non threatening irritation .
Posted by Uncle Stu
#AlbinoLivesMatter
Member since Aug 2004
33659 posts
Posted on 4/23/18 at 3:28 pm to
quote:

starsandstripes


good post

Not entirely sure how much I agree with, it's alot to digest and think about

I dont think we can have an honest discussion about the cost of healthcare without tort reform though.
Posted by Tridentds
Sugar Land
Member since Aug 2011
20400 posts
Posted on 4/23/18 at 3:31 pm to
quote:

it could be a factor in our health care spending.


Unlike a lot of developed countries we have healtcare providers, health insurance companies, etc... with stockholders needing to see profits go up and up.

We are also one of the few countries where pharmaceuticals spend hundreds of millions direct marketing prescription drugs to the consumer... you know... "ask your doctor about X".

While our healthcare in the U.S. is certainly advance in many ways it is also has some pretty big inefficiencies as well.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
422586 posts
Posted on 4/23/18 at 3:36 pm to
this is very true. a major issue is that our consumers demand immediate access (if they have a funding source). that costs money

more socialized societies have to wait for care

also, our rooms are much more private and loaded than in more socialized countries
Posted by skrayper
21-0 Asterisk Drive
Member since Nov 2012
30897 posts
Posted on 4/23/18 at 3:38 pm to
There's no universal fix for the overall problem, because it may have started with one root cause but it has spiraled into MANY contributing factors. Trying to slap a single catchall fix to it will just make matters worse.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
422586 posts
Posted on 4/23/18 at 3:38 pm to
quote:

Would be way cheaper to treat on the front end.

i think we all agree, but

quote:

Thing is, those patients often have emergencies because they don’t go to the doctor until things get to that point.

that's, by and large, not a function of ability to pay

that's just typical underclass bad decision making

again, it's an example of consumer choice
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
422586 posts
Posted on 4/23/18 at 3:40 pm to
quote:

No competition means they can charge you pretty good

how much in revenue do you think these hospitals are making that aren't contractual?

they can't jack up the prices on your insurance company, medicare, or medicaid
Posted by starsandstripes
Georgia
Member since Nov 2017
11897 posts
Posted on 4/23/18 at 3:45 pm to
quote:

I dont think we can have an honest discussion about the cost of healthcare without tort reform though.


Get govt out of healthcare and tort reform will begin taking care of itself.

Healthcare costs not driving by litigation but instead by the industry dynamics and by medical errors.

Get the govt out of healthcare, and let the lawyers go HAM on medical errors and you can rest assured that the AMA will finally begin policing itself with regard to medical errors. There are far too many errors made and medical professionals should be ashamed of this. Instead they run from it, cry about malpractice insurance costs, and take no steps to prevent it.

In their defense however, the govt overlord and its onerous restrictions on how things must be coded and so forth so that Uncle Sam pays, all the paperwork all the admin time they spend - all of that takes away from doing proper exams, makes patient encounters shorter, and increases the chances of error. Doctors need to be doing doctoring. That alone will help fix the errors as well.
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