Healthcare Crisis 101 – Lesson 2
This is Lesson 2 in my continuing series designed to help you understand the “Healthcare Crisis” and see through the smoke and around the mirrors that Washington, D.C. and the Media are putting in your face every day without letup. To the Democrats AND the Republicans – A plague on BOTH your houses!!!
The reason the Republicans are having such a hard time “replacing” ObamaCare is because they are off in the weeds trying to undo an insoluble Democrat mess playing by the same rules as the idiots who made it.
Ours is supposed to be a “free market economy,” which means that the Price (of goods AND services) is determined in the “marketplace” by the Law of Supply and Demand.
Pretty simple Law – Supply goes down or Demand goes up, Price goes UP; Supply goes up or Demand goes down, Price goes DOWN. Simple. One hundred years ago, the doctor would come to your house, look down your throat and apply a mustard plaster to your chest, and you would give him a couple of chickens.
Now, the doctor has to pay for a million dollar machine to test your blood and pay $100,000 a year to an insurance company in case Aunt Minnie dies of old age at 101, and her relatives try to sue the fuzz off his sweater.
Healthcare Is a Different Animal
The Law of Supply and Demand holds true for almost everything, except maybe Healthcare, because Healthcare is a little different than a sack of potatoes. The potato crop is abundant, potato prices are down, and if your grocer tries to overcharge you for his potatoes, you buy them from someone else or buy rice instead. He’ll get the message.
If, however, you are hurt or sick, it is only Human Nature to be willing to pay ANYTHING to feel better, get well and stay alive. Today, doctors, hospitals, pharmaceutical companies and medical equipment manufacturers charge whatever they damn well please mainly because SOMEBODY will pay it, and the only downward pressure on Price comes from COMPETITION, of which there is little.
Before ObamaCare, the SOMEBODY who was paying for almost all the Healthcare delivered in this country were INSURANCE COMPANIES.
Insurance Companies “Get It”
You see, Insurance Companies understand the simple fact that people who feel fine right now will pay them a LOT of money on a regular basis (“premiums”) for assurance that, if they get sick or hurt, the Insurance Company will pay the doctors, hospitals, etc. a LOT MORE money than they paid in.
It is sort of a Ponzi Scheme. In effect, Well People are paying the Healthcare Costs of Sick People. It ain’t rocket science.
There used to be a little premium competition among insurance companies – before ObamaCare. Basically, Insurance Companies DO NOT CARE how much doctors and hospitals are charging, so long as the total amount they take in as “premiums” exceeds the total amount they pay out as “benefits” by a hefty margin.
Insurance Companies literally have no skin in the game. It is your skin. For them, it’s just numbers. THERE ARE A NUMBER OF WAYS the Government could do something to reduce Healthcare Provider “overhead” and therefore prices, not to mention increasing competition among Healthcare Providers and Healthcare Insurance Companies. BUT NO ONE IS TALKING ABOUT THAT!
ObamaCare Can’t Be Fixed
Instead, they are talking about MEDICAID, “Pre-existing Conditions” and “how many people will LOSE insurance THEY ARE NOT PAYING FOR IN THE FIRST PLACE.” All Congress, as well as President Trump, are talking about is another YUGE, wasteful, corrupt Government WELFARE program – period.
I am willing to have a real conversation – the hard one about what we, as Americans, do about those, who, THROUGH NO FAULT OF THE THEIR OWN, are going to die in the street because they can’t afford to go to the hospital.
But I am not going to talk about “fixing” ObamaCare – BECAUSE THERE IS NO FIXING IT. REPEAL IT! Republicans, President Trump… you promised REPEAL. Repeal it, then let’s talk about the real problem like grown-ups.
Tort reform. This reduces costs for doctors and hospitals. Have insurance cover catastrophic costs and the patient pays for doctor appointments. This would help cut down on running to the doctor for every cut and boo-boo.
Of course these changes could never happen ’cause the lawyers and insurance companies are major contributors to the election campaigns of those running for Congress.
whey to go Frank, read what you said about ” Obamacare ” & I couldn’t agree more ! . I unfortunately am in this messed-up system where as I have a dissabillty, since I was 1 year old I’ve had rhyemetoid arthritis. I am now 53 years old & fortunately or unfortunately depending on the way you look at it , I have my bad days & some good days . but these all ways pain involved all ways ! . so I have to use pain meds. which I hate ! & now I’ve been on duragessic pain patches for at least the last 12 years or so & I have gradually gone down to 50 m.g. every 36 hrs. & I hate all the side affects, constipation being # 1 & when they sometimes don’t work then theirs horrible withdrawal symptoms I have to deal with . then when I need to get a new RX I never know what’s gonna happen with my insurance if they are gonna give me problems or not ? & when I need these patches I mean I really need them & I can’t be held up ! but they don’t care at all . now I have never been one to abuse the system I don’t want this at all to begin with, hate being on any kind of drug . but the system is so broken let’s have that adult talk & fix it , other countries do why can’t we ? . thanks .
It should be repealed and Govt> should stay the hell out of it! Keep medicad because all o of us who actually work paid for that just like SS, everything the govt touches they ruin or make worse!
Absolutely Kenny — repeal it, let insurance companies compete for business across all state lines, and let the gov’t stay the hell out of the health care business….period
Remove me from your database of emails. Anyone that attempts to conduct business as biased as you are, doesn’t deserve to succeed. Sheer ignorance to tout your own political beliefs because OBVIOUSLY 50% of the population disageees with you. You can say you’re against both parties but it is so glaringly apparent that you are a Trump supporter. Now you’re upset that a proven known liar, lied to you. He never had any intentions of helping anyone but the top 1% of the wealthy. Jesus, do whatever it is you need to do to “de-brainwash” yourself! Quickly before your ENTIRE brain rots! I DARE you to publish this, but I know you won’t. You just want blind followerers to pay your outrageous prices for products. You instill fear into consumers for NOT buying. The oldest, dirtiest marketing ploy known to mankind. You, and those that follow you, are the problem with America today. There is no truth to the slogan you fell for to make Ametica great again. America ia just fine when the corrupt Republicans are not in office. Trump will have our economy in rhe toilet if he’s not impeached first. Worse yet, he’ll incite WW III. God help us all if he’s allowed to stay in office for an entire term!
Dear Frank,
How come auto insurance works great and at the same time why not health insurance works just like auto insurance business does today? Can health insurance follow auto insurance route with having few known gaps to cover like having per-capped fees with having no insurance; with having insurance and for those who cannot afford any health insurance but need treatment? Those who on purpose bypass insurance coverage that will have to pay thru nose after the treatment they got either from salary or thru IRS? You cannot have cake and eat it at the same time? Just like auto insurance have mandatory part and optional/comprehensive part with varying coverage limits based on need. Why health insurance has to be tied with employment? Please bring such radical changes as part of new American Health Care policy so that consumers/patients will not be suffered financially in addition to their sickness? Otherwise, it is an insult to injuries and/or just the same wine in a new bottle? Please bring to attention of Tom Price and the President, Donald Trump in this connection that American citizens are looking for total working solutions here.
Frank,
You’re “spot on”….my father was a vascular surgeon and had a very successful practice for many years . When I was a teenager (many, many) years ago, my father said “there is absolutely NO incenttive for anyone in the healthcare industry to bring down the cost of health care – NO ONE – hospitals, doctors, medcial device and pharmaceutical manufactures, etc., etc. He told me there was NO money in keeping people healthy, in fact, there was more money in keeping animals healthy, but NOT people!
I’m an insurance broker and work with companies large and small everyday. Everyone is complaining about the cost of “healthcare”, but what they really mean or should be saying is the cost of health insurance premiums….
You see, we have two (2) distinct different industries – health care vs. health insurance; interrelated yes, but still distinctily different! But here’s the bottom line – the only way to bring down the cost of health insuracne is to bring down the cost of HEALTHCARE….and no one is willing to do that – except us…..rw
I agree with your statement. There is no fixing Obamacare. Repeal it now
I agree the only sensible thing to do is first repeal Obamacare or the ACA and then start over. No more entitlement programs that run out of money because the government puts an IOU in its place, like social security. People have to start being responsible for themselves, with a little help from Uncle with rules and regulations (?) but not like Granny with handouts. The poor will always be with us and to help the truly poor is fine but to put people in places where they don’t belong is not really helping, it is called enabling. Of course the legislators themselves are adding “goodies” to the pot in the hopes they will be re-elected. Time for term limits, members of Congress should not be relying on working for the government as a way of life but just one step in a life of service.
Part of what you say is true, but the part about obama care not e able to be fixed is way wrong. yes there are thing that are wrong with it, but they can be fixed if our government was willing to work with each other and fix it. But know, all our government want to do is fight over who has the best plan. I wonder why other countries have better health coverage and cheaper cost than we do. If our yoyo’s would give the pack the boot and stop fighting and start acting like men and not little boys, maybe, just maybe we could have the best health and cheapest plan in the world. But we can not have it with the junk we have for a government now.
After living in England for 6 years and Canada for 8 there is no question in my mind that we need socialized medicine as the only industrialized country not to have it.
The easiest and most effective way is to make it across the board for everyone. If congress had to use it they would make sure it was “good enough”
I was a child in England but in Canada in the 1990s my family paid $145 per quarter in Alberta and everything was pretty much covered- not dental or vision.
In Ontario I paid $45 per pay period – there it was charged per full time employee. Alberta I mailed it directly to gouvernment.
My 16 year old daughter caught her leg on fire ankle to upper thigh 3rd degree burns. She was in the hospital for 30 days with home health services – visiting nurses- for three more months with a home teacher who came twice a week for tutoring.
I paid $25 total only because I chose to purchase crutches rather than rent. In eight years there was no one I knew or who made the news in my million plus population cities who did not receive timely care. I had one associate who waited a month for knee surgery however I know several know who need it and wait that long for insurance approvals.
Currently as a teacher in Texas I pay $379 per month single coverage premiums and have a $3000 deductible. Plus it is a sizing how much doesn’t count toward that deductible. My out of pocket costs for neck surgery was $13000 last year and my youngest in college a few years ago had $59,000 out of pocket for 4 hours in the hospital while they schocked her heart for arrhythmia. There were two one inch incisions and laser technology. It was out patient surgery.
Let’s get this done. Insurance is insurance very few spend their whole lives with no medical needs. When I was in high school in Florida (dad was Air Force) there was a high school foot ball player who was paralyzed and went into a coma during a game. His family of 5 lost there home and moms job to take care of him. His family lost everything there life existed to keep him alive. He never recovered and neither did his family
This has to stop. The world is astounded at our apathy for our own. For the record I until the last few elections (I’m 61) I have considered myself Republican.
Finally! Someone speaking with common sense! Of course Obamacare cannot be fixed. Government needs to get out of healthcare and quit meddling in our lives. Republicans promised to repeal this stupid law, and they need to keep their promise. They were elected/re-elected on that promise. Nothing was said about repeal/replace/ It was simply REPEAL! Completely repeal it…then start over….if you must. None of us has an unalienable right to health care by the government. Folks who can’t afford it have government programs like Medicaid that are already over utilized! REPEAL it now and quit wasting your time and our tax dollars trying to fix a sinking ship! Repeal it before it dies anyway.
Amen, Brother.
I have never felt that the ACA, or Obamacare, was the solution. The problem is the out of control costs of healthcare in the US. The insurance companies do nothing to prevent fraud and waste by physicians.
I have gone to the ER with abdominal pain, only to have them do an EKG. Um, wrong body part?
I have gone to urgent care for pain and been referred to the ER because they didn’t have the necessary imaging equipment to accurately diagnose. However, the urgent care dr warned me that the ER would want to do an expensive mri that would not diagnose my problem, when an inexpensive ultrasound would. Sure enough, that’s exactly what happened. The ER dr disregarded our request for the ultasound to be done first, and threw my husband out when he objected to the dr doing the mri first. Six hours later, during which the ER staff overdosed me on pain meds and the ER dr never even examined me, they finally did the ultrasound and I was discharged. My bill, with insurance was $2400, when it should have been $700. I protested to the hospital and was told it was MY fault that the staff had overdosed me on pain meds because I could have refused…
I have complained to insurance companies, only to be told, well that’s what the doctor ordered. There is NO accountability unless there is enough money to justify a lawsuit.
My husband was charged $400,000 just from the hospital when he had a heart attack and spent 14 days in the hospital. That’s $28k A DAY!! We had an HMO plan through my employer. Thank goodness I picked that plan. If I had picked the PPO plan it would have cost at least $15k in copays, deductibles and coinsurance, in addition to higher premiums, but because I chose the HMO it cost us around $2k. Same services, why the difference in costs, especially when we paid lower premiums?
Now THOSE are the types of questions that I want to see answered. But when many of our lawmakers are doctors and/or supported by insurance companies and Big Pharma, we will not see any real solutions. Personally, I don’t think health care should be for profit to the point that people become filthy rich, while the majority of those that they treat live well below them. THAT, in my opinion, is the real problem. Time to stop putting a band-aid on a gaping, bleeding wound.
Doctors that take nsurance are set at a fixed price. They can’t charge whatever the hell they want. Miles’s than EIGHT CENTS of your health care dollar pays the doctor but twenty cents goes to the insurance company. Don’t vilify the doctor that will work like hell to save your ass.
Forgive the spelling errors have been working for 18 hours strait fighting the insurance company for what my patients need
I agree Frank!!!!
Repeal the darn thing. Let us keep our insurance with choices and put the uninsurable with preexisting conditions into a separate welfare type program…but not a free welfare program…they still have to have some skin in the game.
I really like this stuff
I voted for repeal, not replace. I don’t understand why Republicans don’t “get it.” Just repeal this terrible law and go back to the way things were before the liberals created that mess. Never mind replacing or fixing it. The federal union has no authority under the Constitution to regulate healthcare providers. insurance companies, or any other businesses. If they would just stick to the 16 functions the Constitution authorizes them to perform, and do a better job of performing those few functions, we’d all be a lot better off.
Obamacare is the only reason I am alive and working today. The only way to improve this program is to go to ‘single payer’. I hope the rest of you who do not want to be insured, get a catastrophic illness and Bankruptcy.
Repeal all of Obama Care, then start over
You nailed it Frank. It’s too simple and too logical for the politicians to understand, let alone figure out. I’m afraid we have created a monster (federal government) that we can longer control or count on to look out for the people. Their world revolves around a two year election cycle. Nothing more, nothing less.
I like your perspective, and it was well said, however, now you have to reach out to people with what your ideas are to repeal it. Let your readers know specifics and ask them to share your ideas, or at least some of them, with others if they agree. Then write your congress person and President Trump and anyone else you can think of. You are right…the way this is going, the American people will just end up with another government welfare program.
Unbelievable sophistry and half-truths.
There are a lot of issues I agree with you. However, health care is very important. The Republicians have no idea of how hard it is to pay for health insurance and put food on the table. Most of them are rich men, and could care less about the poor Americans like me. Their “health plan” gives big tax breaks to the upper 1% and kills about 200000 Americans. Where is “life, liberty,, and the pursuit of happiness”. If you think that I’m talking out of my butt, I am a disabled Vet, have fought fore my country, and got spit on when I came home. I’m also a customer and supporter of Food4Patriots.
Repeal Obama care and get out of healthcare!
The patient and insurance companies should deal with healthcare. I am 87 years old and I want to include Medicare . All of my working years I carried health insurance, but when I reached 65 Medicare became my primary and private insurance became secondary. How dumb is this. They never had to pay anything.?
The rep promised to repeal Obama care and now after 6 plus years of time to get right they did nothing it will be a cold day in hell when I vote for another rep congressman or senator, as they have lied to us enough. no repeal no vote for any incumbent rep.
President Trump is NOT the problem. Congress is the problem. Trump is telling them to repeal it now, then replace it later. Trump says get it done.
I agree, REPEAL IT!!!
I agree we need a total repeal that’s what the President ran on they can try to fix health care after
I really would like to hear more specifics instead of something like “there are a number of things that can be done………”. Agree healthcare is complicated and there will always be insurance. Nobody would be able to save enough to pay out of pocket for major expenses, and since it is true as the article said that insurance companies don’t really have skin in the game, it is questionable how true to a free market healthcare will ever be. But surely we can do better, and if not it will eventually break the bank
I understand your point. I am FOR full repeal but I am not seeing much cooperation in Congress to get it done. I do have legitimate concerns that in TODAYS world really sick people will not get even base adequate health care because this Country is too over run with people in a position of authority who would GLADLY deny health coverage to those that cannot pay. That leaves us back to the Emergency Room in the local hospital as the “General Practitioner” of last resort. Got a bad cold and no insurance? Go to the ER. I wrestle with the moral reasoning behind government mandated health care constantly. When you have people INTENTIONALLY not buying health insurance and then throw in the “pre-existing conditions” factor where people only buy health insurance AFTER they get really sick (why buy it NOW because I don’t need to use it quite yet) and THERE is the conundrum. In the old days one could find a Doctor that would agree to see them on a “buy now, pay later” plan. NOT IN TODAY’s WORLD! It is “either pay me or get out”! Now that person is back to the ER because they are required to see you by law. WHAT is the answer? When you have a mandated health insurance program with “pre-existing conditions” clause in it it is just like having a car accident and THEN going to the Insurance Company and buying car insurance and then making them pay for your accident. Again, WHAT IS THE ANSWER?
Repeal and get rid completely of something they know don’t work…
Ready to give up on government.
Don’t do anything let Obama care fail. Everyone has to take responsibility for their own care and if they have no money or insurance let charities help and the gov help the charities
All the gov’t agencies are corporations—-in it for profit, not for people. These corporations are so badly managed that nothing is run properly when they are involved. So sad that we can’t see this and just get rid of them.
This is the only common sense explanation that I ever seen on healthcare–something that we know is true in the back of our minds but you have given a very simple explanation of—-if only this could reach everyone–it completely explains why only repeal will stop this madness
You are correct, once liability law suits began to happen doctors had to pay exorbitant amounts of insurance. Then insurance companies needed to raise rates and cover test upon test to CTA( cover their a$$) It is a shame that we keep sending idiots back to DC.
We need term limits. 2 terms and you are out. Never happen, the crooks in DC will never pass it. They don’t care about repealing Obamacare, they don’t have to live under it. We the taxpayers pay fro their premium care.