Why is health care so expensive?

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For a new drug:

1) Discovery process: 4-8 years.

2) Clinical trials: 4- 7 years

3) FDA approval: 2-3 years

It averages out to about 15 years and tens of millions of dollars from conception to launch. Hundreds of employees will be working for years at a project that is losing money. Finally after approval the company will need to figure out how to make all of that money back and hopefully make a profit as well. They don't have much time to do it before their fruits of their labor are given away to other companies to be sold as generics. Then consider the money that is lost in trying to create new meds the the feds never approve. Finally we have thousands of lawyers out there digging for ANY reason to sue a drug manufacturer or doctor. Even after the FDA has studied and confirmed that a med is safe, the pharma company is on the hook for any adverse affect. If the drug saves the lives of a million people and 50 get sick from it, the lawyers go for blood. The cost is huge and is passed on to you.

The common belief is that there are 10 to 20 million illegal aliens in the U.S. Who get "free" medical care. Well it's not really free. The government does not pay for it. Hospitals do not pay for it. Insurance companies do not pay for it either. Who does? You do. Your insurance premiums, fees and other bills must cover the cost of providing medical care for someone who's legal address is in Mexico city. And worse, they don't even bother to thank you for taking care of them.

When the government takes over how screwed will you be? Obama claimed that after Obama care was implemented, that your medical care would get cheaper. Obama care has been partially implemented already and my costs have only gotten higher. What about yours? Can you think of anything that has gotten cheaper and more efficient after government has taken over? Yeah, neither can I. We are in the process of totally destroying the best health care system in the world.

rigel1's picture
rigel1
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Jan. 31, 2011 6:49 am

Comments

Why is health care so expensive?

Federal and State mandated Cost shifting.

Capital.0's picture
Capital.0
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May. 22, 2012 2:21 pm

There is no free market. Doctors are licensed by State government's. It didn't used to be that way. Through the AMA, doctors have sort of a cartel going on. Many medical procedures can be performed by non-doctors but they aren't allowed. Insurance companies are mandated by law to provide certain coverage. In a free market, you should be able to buy whatever coverage you need. What is called insurance really isn't insurance. It's like having auto insurance cover oil changes. I don't think doctors are allowed to advertise their prices.

LysanderSpooner's picture
LysanderSpooner
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Jul. 31, 2007 3:01 pm
Quote LysanderSpooner:

There is no free market. Doctors are licensed by State government's. It didn't used to be that way. Through the AMA, doctors have sort of a cartel going on. Many medical procedures can be performed by non-doctors but they aren't allowed. Insurance companies are mandated by law to provide certain coverage. In a free market, you should be able to buy whatever coverage you need. What is called insurance really isn't insurance. It's like having auto insurance cover oil changes. I don't think doctors are allowed to advertise their prices.

Have your medical expenses gone down as Obama promised they would?

rigel1's picture
rigel1
Joined:
Jan. 31, 2011 6:49 am
Quote rigel1:
Quote LysanderSpooner:

There is no free market. Doctors are licensed by State government's. It didn't used to be that way. Through the AMA, doctors have sort of a cartel going on. Many medical procedures can be performed by non-doctors but they aren't allowed. Insurance companies are mandated by law to provide certain coverage. In a free market, you should be able to buy whatever coverage you need. What is called insurance really isn't insurance. It's like having auto insurance cover oil changes. I don't think doctors are allowed to advertise their prices.

Have your medical expenses gone down as Obama promised they would?

I am not naive enough to believe that medical expenses will ever go down. If he said that then he is naive. That is why the public option is still the best answer. To LysanderSpooner, free markets always start out that way but eventually they end up merging into a false free market.

Bush_Wacker's picture
Bush_Wacker
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Jun. 25, 2011 6:53 am

Wow, what a con lovefeast! rigel begins with the sob story about the expensive overhead suffered by the benighted pharms who struggle against all the regulations and government to bring great advances to healthcare at affordable prices through, of course, "the free market."

Then there is the stupid, "have your medical expenses gone down as Obama promised they would? Compared to what they would have been without the slowly implemented and still to be felt changes, I am paying less. Now, compared to the whole implemented system, easily a better deal. It is utterly dishonest to disregard the short-term profit taking and the lag in experienced improvements when asking such a question. We should just leave it to the free market and cost for service medicine. Really!

The idea that what is at risk is the best healthcare system in the world is hilarious. It is certainly the most profitable for those extracting the cash from those whose need for healthcare is a human rather than an economic decision. Right there you have a grossly immoral factor. What is wrong with the American plan is precisely that it rations care by money rather than by human need. It rapes the idea that we are equal citizens in a free country. Nope, we are participants in the caste system of plutocracy where no social rights or benefits come to those who cannot pay for them.

I will add in the ugly resentment at the pensions people have actually paid into as well. Somehow, any collective restraints imposed on the extractive behavior of the economic predators is immoral, while those same predators are exalted and praised as "job creators" and "the successful." Who gets healthcare? If we shared the burdens collectively and accepted that those who need the most healthcare have drawn the short straw rather than hitting the jackpot, we might feel a lot better about putting in more than we get back. If you cannot afford to finance healthcare for all in the Commons, don't bother funding a global military force.

drc2
Joined:
Apr. 26, 2012 11:15 am
Quote Bush_Wacker:
Quote rigel1:
Quote LysanderSpooner:

There is no free market. Doctors are licensed by State government's. It didn't used to be that way. Through the AMA, doctors have sort of a cartel going on. Many medical procedures can be performed by non-doctors but they aren't allowed. Insurance companies are mandated by law to provide certain coverage. In a free market, you should be able to buy whatever coverage you need. What is called insurance really isn't insurance. It's like having auto insurance cover oil changes. I don't think doctors are allowed to advertise their prices.

Have your medical expenses gone down as Obama promised they would?

I am not naive enough to believe that medical expenses will ever go down. If he said that then he is naive. That is why the public option is still the best answer. To LysanderSpooner, free markets always start out that way but eventually they end up merging into a false free market.

So you are convinced that government, who has absolutely no experience in providing health care is going to make things more efficient and improve your care? Are you basing this on your faith in government or on all of the great, money saving, efficient government services currently provided? If you want ot make anything much more expensive put a government official in charge.

rigel1's picture
rigel1
Joined:
Jan. 31, 2011 6:49 am
Quote rigel1:
Quote Bush_Wacker:
Quote rigel1:
Quote LysanderSpooner:

There is no free market. Doctors are licensed by State government's. It didn't used to be that way. Through the AMA, doctors have sort of a cartel going on. Many medical procedures can be performed by non-doctors but they aren't allowed. Insurance companies are mandated by law to provide certain coverage. In a free market, you should be able to buy whatever coverage you need. What is called insurance really isn't insurance. It's like having auto insurance cover oil changes. I don't think doctors are allowed to advertise their prices.

Have your medical expenses gone down as Obama promised they would?

I am not naive enough to believe that medical expenses will ever go down. If he said that then he is naive. That is why the public option is still the best answer. To LysanderSpooner, free markets always start out that way but eventually they end up merging into a false free market.

So you are convinced that government, who has absolutely no experience in providing health care is going to make things more efficient and improve your care? Are you basing this on your faith in government or on all of the great, money saving, efficient government services currently provided? If you want ot make anything much more expensive put a government official in charge.

Like always I base it on common sense. My choices are to leave healthcare in the hands of a for profit insurance company that has the power to deny my needs no matter how long I have been paying premiums or to leave it in the hands of a non profit government agency that by definition has to cost less. I also have the choice between a private company calling the shots for which I as a consumer have no recourse or a government that I can vote on to call the shots and therefore I do have some recourse. I can have an insurance company that bargains with the health care industry on pricing that benefits the insurance agency and the health care industry or a government that bargains with the health care industry for pricing that benefits me and the health care industry.

How many years has the government been running Medicare and Medicaid? To say they have no experience is ignorant. If you are referring to actual medical care itself then the government has just as much experience as an insurance company does. Whether an insurance company or the government is in charge of my health care "services" has no effect what so ever on the quality of my care. That is the medical profession's job, not theirs.

If I pay premiums of some sort whether the normal route or via taxes for many years and have no need for medical care then the money I've paid in can go to help someone who does need care. If I pay premiums for years to the insurance company and have no need for medical care then the money I've paid in goes into someone's Porsche.

Bush_Wacker's picture
Bush_Wacker
Joined:
Jun. 25, 2011 6:53 am

Government funded healthcare is better and cheaper than the privateers. The "bottom line" is good public health, not how much public money can be extracted into the profits. Why would the profiteers deliver the cheapest and best unless they were saints?

drc2
Joined:
Apr. 26, 2012 11:15 am
Quote drc2:

Wow, what a con lovefeast! rigel begins with the sob story about the expensive overhead suffered by the benighted pharms who struggle against all the regulations and government to bring great advances to healthcare at affordable prices through, of course, "the free market."

Not a sob story. I simply listed the facts. What you do with the facts is your business.

rigel1's picture
rigel1
Joined:
Jan. 31, 2011 6:49 am

Then why are these same drugs cheaper in Canada and Europe? Also nobody wants to be paid less-doctors, nurses, hospitals, insurance companies, etc. How about the drug companies paying generic manufacturers not to produce a generic so the drug company avoids a cheap generic to their profitable drug?

http://www.msnbc.msn.com/id/21032902/ns/politics-the_new_york_times/t/report-assails-fda-oversight-clinical-trials/

DynoDon
Joined:
Jun. 29, 2012 9:24 am
Quote LysanderSpooner:

There is no free market. Doctors are licensed by State government's. It didn't used to be that way. Through the AMA, doctors have sort of a cartel going on. Many medical procedures can be performed by non-doctors but they aren't allowed. Insurance companies are mandated by law to provide certain coverage. In a free market, you should be able to buy whatever coverage you need. What is called insurance really isn't insurance. It's like having auto insurance cover oil changes. I don't think doctors are allowed to advertise their prices.

That's funny.

You should try to avoid being a stereotype.

Dr. Econ's picture
Dr. Econ
Joined:
Jul. 31, 2007 3:01 pm

"None of the 36 countries which have better health care systems than the USA have followed the money to build their health care system. For the very good reason given above: money does not care. " from

http://patriceayme.wordpress.com/2012/03/19/money-does-not-care/

Money Does Not Care

And Those Who Follow It Don’t Either

PHILOSOPHY SAYS OBAROMCARE WILL NEVER WORK

an interesting essay.

from

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pshakkottai
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Jul. 11, 2011 10:27 am

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