Medical Costs, Errors and Lawsuits; What does it all Mean?

Posted by on March 7, 2012

Columnist Ezra Klein wrote in the Washington Post about dramatically higher health care cost in the United States compared to other developed nations. Most notably, the United States actually has a higher rate of medical errors than other countries, and consequently more malpractice lawsuits. Equally important, Klein revealed the McKinsey Global Institute estimated that high administrative costs accounted for 21 percent of America’s excess spending on health care. Most of those costs were on the private market. Medicare, they found, spends about 3 percent of its budget on administration. But private insurers spend much more. The excess is mostly attributable to “underwriting health risks and sales and marketing — costs that do not arise in the public systems of most [other industrialized] countries.

Read the article and perhaps you will think that Medicare may be a good model for uninsured and under-insured in the United States.

When you read the article also concider this.

United States spends more on health care than any other country

It is a fact that the United States spends $2.6 trillion per year on health care, far more than any other country, and has no better medical outcomes to show for it.

Why do you think outcomes are not better than other developed nations, and what should the U.S. do to reduce health care spending?




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