Thanks, appreciate the link. However, it does not corroborate the theory that health insurance companies alone are responsible for that difference. From the article:
There are many possible factors for why healthcare prices in the United States are higher than other countries, ranging from the consolidation of hospitals — leading to a lack of competition — to the inefficiencies and administrative waste that derive from the complexity of the U.S. healthcare system. In fact, the United States spends over $1,000 per person on administrative costs — approximately five times more than the average of other wealthy countries.
So while the administrative overhead definitely IS very high compared to other countries, it doesn’t even account for more than 10% of the total healthcare expenditure — meaning eliminating insurance companies wouldn’t just magically make healthcare 50% cheaper for everyone.
OK, the whole 50% additional cost paid by the patient may not all go to the insurers.
Hospitals can also be profiting, as well as numerous side industries (pharma, equipment etc.) as well as the heavy admin layer you highlighted.
But the major difference between the US and other rich OECD countries is the insurance layer replacing the social funding. Health insurance is the cause of the disparity, even if it doesn’t receive all the benefit.
Thanks, appreciate the link. However, it does not corroborate the theory that health insurance companies alone are responsible for that difference. From the article:
So while the administrative overhead definitely IS very high compared to other countries, it doesn’t even account for more than 10% of the total healthcare expenditure — meaning eliminating insurance companies wouldn’t just magically make healthcare 50% cheaper for everyone.
OK, the whole 50% additional cost paid by the patient may not all go to the insurers.
Hospitals can also be profiting, as well as numerous side industries (pharma, equipment etc.) as well as the heavy admin layer you highlighted.
But the major difference between the US and other rich OECD countries is the insurance layer replacing the social funding. Health insurance is the cause of the disparity, even if it doesn’t receive all the benefit.