When will it stop?
Yes, we all know that we have inflation- mostly due to weather related issues blocking our supply chains. But, health care costs (yet again) jumped almost 10% last year. (That’s more than double the previous year’s increase of “only” 4.3%; one of the lowest in a while.) This one, though, is the highest increase is 2 decades! Coupling that with our modest drop in GDP (gross domestic product) means healthcare glommed some 20% (compared to 17.6%) of the economy last year.
Part of this change is the massive amount of federal funds that were pumped into the system to keep our hospitals, medical providers, and even some states on an even keel as they got pummeled by the pandemic. Given the 20 million of us who contracted COVID-19 and almost 400K deaths, it’s not surprising. (You do know fed healthcare funding jumped 36%- compared to a 5.9% rise for the previous year.)
Federal healthcare spending was about 50% of all public health care dollars- treble the 15% it normally accrues. Interestingly, hospital spending only increased by 6.4% in 2020- almost identical to 2019 (6.3%), while retail drug dollars increased by less than ½ that amount- just 3%.
Now, some folks will say it’s a good thing that private healthcare (business and individual costs) didn’t go up as much as the feds. But, let’s get real- the fed moneys crowded out the increased costs we incurred- and covered more of our expenses, so the other segments look like a blip.
Individual out-of-pocket costs actually dropped in 2020. From an increase of 4.4% in 2019 to a drop of 3.7% in 2020. Let us not forget that the pandemic crowded out a lot of surgeries and non-COVID hospital visits (both because of fear, plus the shortage of available resources). Medicaid (state-fed coverage for the lower income or disabled citizens) grew by 5%; the highest since 2014 (when the Affordable Care Act [Obamacare] really kicked in).
We still have a long way to go to rein in our health care costs. Especially since that tally is about twice what the rest of the developed world spends on theirs.
It’s two weeks until we can start filing our income taxes. Did you acquire my book that can help you pay the lowest amount of taxes required by law?
That’s a lot of money, I’m feeling dizzy!
Do these costs include Covid vaccinations? Do we have an idea how much was spent on those?
Interestingly my country comes in second on your chart, even though we have a completely different health care system. Every citizen needs to have their own health care plan. If they can’t afford it, they may apply for subsidies.
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So, Tamara, theoretically, COVID vaccinations should have cost $ 8 to $ 10 billion. But, I amnot sure that includes the subsidies provided reseearchers to crash develop the therapy.
Single Payer, Single Payer, Single Payer!!!!!
I am all for single payer- but it’s also the issue of the never vaxxers that cause staff shortages (necessitating premium staff augmentation) and cancelation of surgeries that help hospitals balance their costs. A single payer won’t solve that issue.
Health care costs — I don’t know what to say about them. I do wonder if we may see some changes because of the pandemic shortages. I don’t know if these changes will be good or bad. Shortages of services and products will have some impact — I just don’t understand what they may be…right now
To be continued…
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OK, I will channel Macron right now. I think those that refuse to be vaccinated should be forced to pay for their treatment. Why should the rest of us have to pay higher premiums, higher costs- when these folks are a good portion of the reason why hospitals lack adequate capabilitis for surgeries and other therapies, why we need to pay for traveling nurses to supplement the normal staffing (which cost twice as much), etc.
What are some of your suggestions for “reining in” health care costs in America? Do you feel the level of care is better or worse in the countries who spend less?
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Our level of care is above that of most of the world. But, a high level of care does not mean all of it provided better health benefits.
We need to pass off the burden of traveling nurses and overtime to those who refuse to be vaccinated. Let health insurers notify their covered that deductibles will be increased should they elect to not be vaccinated (without true medical reasons for the practice).
We need to adopt a single payer plan. That will cut out the games PBM play with Big Pharma to jack up our drug prices to increase their profits. It will better control changes in costs. Those are the first steps.
It seems like everyone I know that is on old age Social Security was excited when we heard we were getting a raise. Buttttt, health insurance also went up, both A/B and the supplement F/G. On a good note, hubby’s Plan D went down a few dollars.
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Unfortunately, the “cost of living” went up much less than the “cost of being ill”, Martha!