Health care costs were $2.8 trillion in 2012
Six reasons behind the soaring cost:
Spread of private insurance
Specialization of doctors
‘direct-fee system: health care system in which doctors, technicians and specialists are paid directly for their services either by patients or by insurance companies
‘fee for service model’: practice in which doctors have relatively free range in what they charge for their services. This allows doctors to charge more for services and encourage more diagnostic tests for their patients.
More high technology
‘ghost patients’: practice in which doctor’s charge insurance companies for exams that were never completed on patients that don’t exist.
Often this is couple with the practice of ‘self-referral’ in which doctors refer patients to organizations that provide services in which the doctor has a stake in (either owning the company or being an investor).
Lack of preventive care
Regulating the length of hospitalization
Race and health:
This relationship has been attributed to:
Hazardous working conditions
Poor neighborhoods exposed to pollution
Inadequate and unsafe housing
Access to health care
Racial pressures which lead to stress and depression
The higher your education, the better your health (no matter how it is measured—mortality, morbidity or other general health measures).
Schooling might be a more important correlate to good health than is one’s occupation or income.
Educated individuals are more likely to:
Practice a healthier lifestyle
Visit their primary physicians more
Use new medical technologies or medicines.
Be aware of the health consequences of smoking and drinking.
Transmit their healthier lifestyle to their children.
Most people rely on health insurance:
Private Insurance Programs
64% of the population covered by traditional insurance
86% receive insurance through an employer
14% buy it on their own
Health Maintenance Organizations (HMOs)
Private insurance organizations that provide medical care to subscribers for a fixed fee
Focus on controlling costs by disease prevention
Managed care; use of primary care physician
24% of the population enrolled in HMOs
Government Insurance Programs
Medicare, part of social security for those 65+
15.7% of the population on Medicare in 2012
Medicaid, serves poor people with special needs and families with dependent children
16% of the population enrolled in Medicaid
Veterans receive care in government-operated hospitals
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