Posts Tagged ‘healthcare’

American ‘HealthCare’ System Has Been a Scam for Over Two Decades

February 10, 2019 5 comments

What do you call a service which keeps on getting expensive much faster than general monetary inflation but which does not improve? How about calling it a scam. In the past, I have written a few posts about this general area such as the american ‘healthcare’ system is crap, a majority of people now see doctors as no better than credentialed scammers and how life expectancy in USA has always been about class, not race. Yesterday, I came across a tweet in my twitter feed containing a graph which tracked the amount of money spent on healthcare in USA since 1960. Intrigued, I looked up the source and used the more realistic inflation adjusted option. Having seen many other graphs and infographics about the ‘healthcare’ system, I noticed something right away. Here.. have a look at the attached figure to spot what I am talking about.

You might have noticed that the increase in calculated average life-expectancy at birth from world bank data has a peculiar relationship with cost in USA. For starters, the calculated average life-expectancy at birth has improved by just shy of 9 years since 1960. But isn’t that a good thing? Well.. sure, but have a look at how it correlated with cost. It had already reached the 74 year mark in 1981, when the total cost was about 440 billion USD (inflation adjusted)- which is about 1/4th of what it costs now. But it gets better.. or worse. In 1998, the average calculated life-expectancy at birth was 76.6 years and cost about 1,016 billion USD (inflation adjusted). Long story short, average life expectancy has increased by only 2 years over the previous 20 years- but the costs have more than doubled over the same time span.

Even worse, average life-expectancy has been slowly falling over the past two years– but costs keep on going up. While USA spends a bit over 18 % of its GDP on ‘healthcare’, other developed countries achieve significantly better results by spending less than half that amount and their average life expectancy is 3-4 years higher and still rising slowly. So what is happening in the american system? Well many things.. first, the income of doctors started rising a lot after 1980 due to the introduction of billing codes. Impressed by the ability of doctors to extort the system, hospitals joined in the act and used their leverage to out-exploit them starting in the mid-1990s, which is also when pharma got in on the act. So far, none of the three want to stop. And why should they? Too many boomer idiots still want to delude themselves into believing that the american ‘healthcare’ system is the “best in the world”. Keep believing..

What do you think? Comments?