Mr. Purcell’s explanation of high Medicare costs are wide off the mark. America’s health care costs lead the world for a very simple reason, we’re the only developed nation that doesn’t carefully limit at least health care prices; some limit total spending as well. We spend about 18 percent of GDP on health care, compared to 8 percent for competitors Japan and Korea, and 4 percent for Singapore. Taking aggressive action aka our competitors would free up at least $1.5 trillion per year, though admittedly, also shatter a few free market shibboleths.
As for Purcell’s complaint about the new tax placed on medical equipment makers, that’s even further off the mark. Look at the gross profit margin rankings for medical instruments and supplies industry on the Internet — No. 1 in size, BioMimetic Therapeutics has gross profit margins of 91.1 percent, and No. 50 Insulet Corporation has 43.8 percent margins.
More than enough to cover a 2.3 percent tax, especially given the increased sales offered by ObamaCare.
Loyd Eskildson
Scottsdale
Masterrogue666 posted at 1:02 am on Thu, Jan 24, 2013.
bobunf stated: "DonMey makes two assertions about the higher cost of medical care in the US: obesity and population density - with zero supporting evidence." Well golly gee, bobunf, WHERE'S YOUR SUPPORTING DATA for your claims? Why is it that YOU DEMAND PROOF BUT NEVER OFFER IT? Are you going to say the same thing as last time? "Look it up....".
Just because bobunf types something doesn't make it accurate!
DonMey posted at 11:12 am on Tue, Jan 22, 2013.
Willie - Eventually, we probably should. It is far too difficult to actually get into med school, and then when you do, you're faced with grueling hours, years and years of education with no or bad pay, following by tens of thousands in debt. And then you wonder why they expect to make an excellent salary?
sockratties posted at 1:04 pm on Sun, Jan 20, 2013.
Two additional components of our excessive health care costs; the non-competitive nature of a pre-structured payment system and the threat of lawsuits by predator lawyers.
1. If the government says it will pay XX dollars for a procedure no doctor is going to charge less. In fact the doctor will charge more and take what he gets.
2. Medicare is not allowed to negotiate drug prices. They have to pay what drug companies demand. That is one reason mail-order drugs are often cheaper from Canada or Europe even when in the same package.
3. Tort law is a hunting ground for lawyers... Look at the fishing nets disguised as TV ads. Doctors have to run every test possible just in case a lawsuit occurs. And when the patient goes to a specialist the tests will be run again. And again if the patient ends up in the hospital.
In Taiwan, for example, the first visit for a cancer patient I know was one day, the diagnosis and treatment plan was the next day. Surgery was the same week and radiation and chemotherapy occured immediately after all under the same roof with the primary physican and a team of specialists in constant communication. There was no redundancy and the prognosis has been very positive. The cost (paid by insurance) was one twentieth what it would have been here: $6K there vs. $120K here.
Arizona Willie posted at 9:24 am on Sat, Jan 19, 2013.
DonMey: you said " Another thing is the cost of training doctors and nurses. How we do it and how they do it are very different. "
That very well may be. But, considering that their health care costs are lower and their results are better --- it just might indicate that we need to do things THEIR way.
Cerulean posted at 12:13 pm on Fri, Jan 18, 2013.
“If someone gives you free food and you don't have to worry about how much it costs, will you eat more?”
Is that why health care costs continues to outpace inflation by a significant measure?
Is it because doctors, hospitals and pharmaceuticals feel like they have no restraints? May be.
We all need to do more to reduce the cost of healthcare.
DonMey posted at 11:26 am on Fri, Jan 18, 2013.
bob - The healthcare costs of obesity are well documented, as is America's top standing as an obese nation. If you are truly ignorant of the "obesity epidemic", I suppose I could spend the time finding some links for you. Let me know.
And population density has to do with infrastructure. The delivery system of healthcare (hospitals, pharmacies, clinics, etc) aren't free. If you have to cover a larger land mass, then you're going to need more infrastructure. I don't know the exact numbers, I am simply pointing out healthcare here faces different challenges than there. Another thing is the cost of training doctors and nurses. How we do it and how they do it are very different.
dustbowl11 posted at 6:55 am on Fri, Jan 18, 2013.
Votreason,
Medical devices are already being manufactured overseas. The valleys own Medtronic and St. Judes, makers of pacemakers and other devices, had overseas production way before O Bama got elected.
bobunf posted at 5:01 pm on Thu, Jan 17, 2013.
DonMey makes two assertions about the higher cost of medical care in the US: obesity and population density - with zero supporting evidence.
On its face the population density argument is not credible. The United States has a population density of 31 people per square kilometer. Sweden has 20, Finland 16, New Zealand 15, Norway 14 and Canada, Australia and Iceland 3.
All of these countries spend far less on health care than the US and have far better health outcomes.
What evidence does he have that obesity raises costs, and to what extent. Assuredly not the 2-1.2 times higher than other developed countries?
truth posted at 2:57 pm on Thu, Jan 17, 2013.
The U.S. rating in the world on health care. Life expectancy U.S. rated number 38, infant mortality rate the U.S. is rated #46, standard of living the U.S. is rated #30 and education the U.S. is rated at # 20. What adds to the cost of health care in the U.S. is a 30% administration cost.
VofReason posted at 12:52 pm on Thu, Jan 17, 2013.
If someone gives you free food and you don't have to worry about how much it costs, will you eat more? If the free food only went to segments of the population and the free food givers agreed to buy from suppliers but pay only certain lower amounts, would those suppliers seek higher prices from other willing paying customers? Would that not artificially inflate the demand and cost of food? On the device maker front, Liberals are going to need to fire up the false outrage machine as devices begin to be made over seas.
DonMey posted at 11:34 am on Thu, Jan 17, 2013.
There are lots of reasons Americans pay more, and obesity is just one of many reasons. Most countries also aren't trying to provide healthcare to citizens as far apart as Florida and Alaska; their population densities tend to be much higher than the US.
Accuracy posted at 10:26 am on Thu, Jan 17, 2013.
Five new taxes instituted by Obamacare are still scheduled to take effect this year.
One is called the Medical Device Excise Tax. It's a new medical device tax on everything from stents to syringes. It is expected to raise healthcare costs and will force cost-cutting layoffs at medical manufacturers.
Michigan-based, medical manufacturer, Stryker Corp. has already announced plans to lay off more than 1,000 employees as a direct result of the tax.
bobunf posted at 10:07 am on Thu, Jan 17, 2013.
Of considerably more significance than spending a whole lot less, Japan, Korea and Singapore have far better health outcomes than the US:
Life expectancy at birth:
US 78.1 years
Japan 82.1
South Korea 78.7
Singapore 82.0
Of course, it’s not just Asian countries that spend a whole lot less than the US and have far better health outcomes:
Australia 81.6 years, while spending 46% of what the US spends
Canada 81.2, 53%
France 81.0, 49%
Sweden 80.9, 45%
Switzerland 80.9, 60%
Israel 80.7, 27%
In fact, every developed country in the world spends a whole lot less than the US and has far better health outcomes.
The US has the world’s MOST EXPENSIVE health care system and the WORST HEALTH CARE OUTCOMES of any developed country.
The difference is universal health care, which Obamacare moves some distance towards correcting. We may hope that in a few decades the US may approach the average in health outcomes. In the meantime, Americans, especially young ones, die a whole lot faster than their contemporaries in Iceland, New Zealand, Italy, Spain, Norway, Malta, Germany, etc., etc.