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tedd's avatar

Turns out our privately run healthcare system is wasting $750 billion a year, how do the politicians frame that?

Asked by tedd (14078points) September 6th, 2012

The article linked at the end of my post notes how a large panel of healthcare providers, doctors, businessmen, insurance company staff, etc, etc.. got together and crunched the numbers on our privately run healthcare system. They found the system wastes $750 billion a year on waste and fraud. Detailed down to the annual cost:
Unnecessary services: $210 billion
Inefficient delivery of care: $130 billion
Excessive administration costs: $190 billion
Inflated prices: $105 billion
Prevention Failures: $55 billion
Fraud: $75 billion

To put this in prospective, this is slightly more money in one year than Obamacare is projected to save in the next 10 years. You could literally fund healthcare for all for the next 10 years by eliminating this wasteful spending for 1 year.

And to be clear, this is all before the Obamacare plan even comes into effect. In fact Obamacare directly addressed a few of the things listed above (most notably excessive/inflated costs).

How do the politicians frame this? I find it more than a bit ironic that Republicans continuously decry the Federal government as wasteful and full of corruption, and praise the free market private businesses as a bastion of efficiency and cost savings… and then the second largest private industry in our nation is found to be wasting $750 billion a year (and the number one private industry is banking!). Will they try and pin this on Obama? Will Democrats suggest taking a second look at healthcare to address this wasteful spending? Is everyone too burned out on this to even look at it again right now?

http://news.yahoo.com/report-us-health-care-system-wastes-750b-140106406.html

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10 Answers

wundayatta's avatar

I think few politicians other than Bill Clinton would dare attempt to frame it. No. That’s not true. Republicans would frame it, but they would lie. I’m not sure how, but they would find a way to twist it all around to make it the Democrats fault. Maybe they’d say that excess regulations cause private fraud and abuse.

But it’s too complicated for most politicians to try to talk about unless they are willing to lie about it. To tell the truth requires trusting the electorate to pay attention and unfortunately, there is ample evidence to suggest politicians are right in believing the electorate has only enough attention for sound bites.

ETpro's avatar

Great question. We are going to have to confront it at some point, or runaway healthcare costs are going to bankrupt the nation or leave us all living without healthcare and hoping nothing ever goes wrong.

rojo's avatar

I was going to post this link on my FB page but I knew that it would not be read by those of my friends of the conservative persuasion because of the liberal media bias so, for them, I looked to see if Fox had anything about it and it turns out they did. Word for Word. No comments about what it means yet, looking forward to their perspective and not the spin of every other LM outlet.

YARNLADY's avatar

The worst thing about billions of dollars of waste, no matter where it occurs is that no one seems capable of stopping it. It’s a complete mystery to me.

Pandora's avatar

One easy way is to put one government worker in all hospitals in accounting to keep track of what they send out and what they actually spend and charge. If the person doesn’t work for the hospital and directly works for the government then they are not likely to lie for the doctors or hospital that employ them. So if they see John doe come through the accounting office with his (welfare id card that has his picture) and he says John Doe his son (who should have his own id card) was just seen by a pediatric than you know it shouldn’t be charged to his account but to the baby John Doe. Or the doctor says he saw Jane Doe and gave her an MRI and all she got was breast exam physical.
People need to be aware as well. My insurance sends me a copy of their charges and what they paid and what may still be owed. I also ask my doctor for a list of charges to compare it with later.
I once called my insurance company to make sure they were not paying for certain services that I declined that day because I saw some charges that didn’t match up.
The young lady laughed and couldn’t believe I did that since it wouldn’t have come out of my pocket. I told her, yes it would’ve in higher premiums if they get ripped off enough. The buck gets passed down to me. Or they can claim the insurance denied it and I had to pay the rest. Turned out they just changed some of the coding that month and so that is why it didn’t match mine.

Ron_C's avatar

Private health insurance companies are inheriently immoral and often wasteful. No one has explained how a properly run medicare system can be replaced by a for-profit organization so that people pay less for their insurance, It just does not make sense and everyone that attempts to explain it eventually resorts to lies and false assumptions.

ETpro's avatar

@Ron_C The will not pay less. Trey will pay far more. Privatizing Medicare is nothing more than a GOP plan to transfer trillions of dollars in taxpayer money to the corporate interests that fun the GOP.

Ron_C's avatar

@ETpro thanks for the support. I guess that the above post was written when you were in a hurry.

ETpro's avatar

It was written in a stupor when I was falling asleep at the keyboard after taking a Valium. Apologies for all the typos.

Ron_C's avatar

@ETpro no need for apologies, stuff happens and I appreciate the sentiment (if not the spelling -) )

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