Why is health care so expensive?

Epidemic · June 9th, 2009, 10:54 AM

Looking at the Insurance provider they are turning a 5% to 8% profit according to the NYSE.

anything below 15% does not seem too rediculous?

Hospitals go out of business (sounds like they are running rather close on the old profit margin.) Even though they charge crazy prices on asprin and pudding and bed cleaning services.

Malpractice insurance companies are not turning huge profit margins.

So where is the money going?

Doctors in general turn a good salary but they are among the most highly trained people in the country so do they not deserve to be compensated? Their life styles also does not seem account for the prices either???

Where is the money going?

Drug companies spend billions to launch new drugs and charge a fortune for them, yet they are not turning a huge profit margin. They offset costs by charging extra money for new proprietary drug lines. Yet they are not turning 300% profits. We all do not load are stock portfolios with their stock because they yield only modest profits.

Steve R Jones · June 9th, 2009, 11:18 AM

There was a article just the other day: People with Insurance are picking up the tab for people that don't have insurance.

Its similar to retail stores rasing their prices due to shoplifting.

surreal · June 9th, 2009, 12:34 PM

In pharmacies, people without insurance are paying much more for their prescriptions to help the pharmacy make up for what they loose on selling at insurance set prices..

Vagabond · June 9th, 2009, 01:45 PM

My first response was uninsured people. They suck up huge amount of money. Then I was thinking it could be the lawyers and malpractice insurance policies.

Surreal are you combining pharmacies and pharmaceutical companies into one group? Say CVS is a pharmacy and Pfizer is a pharmaceutical company.

surreal · June 9th, 2009, 02:14 PM

No. I am talking about pharmacies. Drugs are a lucrative business, but I'm only talking about retailers-

Epidemic · June 9th, 2009, 04:59 PM

Medical industry 2 trillion dollars $2,000,000,000,000
Malpractice judgements 266 million $266,000,000
I am not sure a 0.01% concern should drive prices up as insanely high as they are.

**Whir** · June 9th, 2009, 06:26 PM

Blame them thar illegals like everyone else!

Gomer · June 9th, 2009, 08:22 PM

Quote:

Originally Posted by Steve R Jones

There was a article just the other day: People with Insurance are picking up the tab for people that don't have insurance.

Its similar to retail stores raising their prices due to shoplifting.

No, healthy people with insurance are picking up the tab for unhealthy people with health insurance. It's socialism for those that can afford it. You pay for the lifestyle choices of others whether you like it or not. Alcohol abuse, nicotine abuse, trans fat abuse, cholesteral abuse, sugar abuse, etc.

I cringed at the irony last year when we were being courted by various insurance reps. There was one that wanted to meet with us but the office was unable. He left his box of Krispy Kreme doughnuts behind though. Later in the afternoon, the rest in the office with BMIs ever growing crammed their faces with doughnuts while they tried to wrap their minds around why the cost of their insurance premium had climbed so high the company had to cut it. I was munching on green pepper slices.

Just a guess, but I am guessing the bulk of the health expense in the nation is as a result of chronic conditions brought on by the horrible things we subject our bodies to.

The drug companies love it. You run your body into the ground and they'll make you a pill to take the rest of your life to deal with it.

Bah

Creatures · June 9th, 2009, 08:42 PM

Quote:

Originally Posted by Gomer

Just a guess, but I am guessing the bulk of the health expense in the nation is as a result of chronic conditions brought on by the horrible things we subject our bodies to.

The drug companies love it. You run your body into the ground and they'll make you a pill to take the rest of your life to deal with it.

exactly, and on top of that people who cough once and see their doctor because they think they are dieing.

Creatures

MTAtech · June 9th, 2009, 09:11 PM

It's expensive because health care finances are inefficient. Private companies have an interest in shoving the cost onto someone else. Doctors must hire staff just to process the multitude of insurance carriers and the denials. Carriers have an interest in delays and denials.

As it is, the U.S. government still pays more per person while not covering everyone than countries that cover everyone.

Health Insurance 101

http://www.nytimes.com/2009/05/22/op...22krugman.html