Economics of Health Care

Eliquis

2.5 mg tables

2 tabs per day → 90 day supply

blood thinner

Eliquis cost v. Mr. Thompsons cost

1508 v. 115

500 a month v. 40 a month

Ophthalmology (know how to spell)

branch of medicine for disorders of the eye

major eye surgery

MDs

Optometrist

treats non-surgical eye disorders, vision correction, etc

Optician

fits corrective lenses, eyewear, etc

Dental cost for a cracked molar

Price: 1100

Insurance: 412

Mr. Thompson: 687

3 bills for detached retina

Retina consultants: around 6000

St Francis Hospital: 26000

Palmetto Anesthesiology: 1,900

Rough total for detached retina

34, 359

Health Insurance/ Employer benefits

Paid in full for 20 days missed work

Job was waiting for him

Bills weren’t financially ruinous bc good health insurance

Life lesson: make a living that provides a similar safety net

Detached retina after insurance

Retina consultants: 630

St Francis: 850

Anesthesiology: 85

Rough total: 1560

USA

-Americans spend 2X/3X more on health care than other rich countries

Out health outcomes overall are worse than other rich countries

ranking: #38

How other countries do health care

health care is considered a right

insurance providers must accept everyone

providers can’t profit on basic care

insurance required for everyone; prices fixed

UK healthcare (national health)

no doctor bills, no health insurance premiums

based on taxes

doctors are salaried gov employees

Downside: waits for appointments/procedures

What is the beatles song about healthcare

taxman

Japan

spends half what we spend on health care and gets better results

everyone pay social insurance - the poor have in provided by gov

Health insurance firms don’t make profits on the insurance

Germany

pioneered national health care

pay health insurance based on income

blend of private/public health care

earn HALF of US doctors salary

free medical school and super low malpractice insurance

health care in USA

profit driven market

profit competition at every stop: doctors, hospitals, drugs, insurance companies

market prices will rise high as market will bear

downside to US market system

leading cause of personal bankruptcy

millions of Americans uninsured and underinsured

Americans with best health insurance

the elderly, military, gov employees, union workers, employees of big companies

Why is the USA an outlier

we believe markets do things better than government

Habit/custom: it is how we always do it

sectors of health care market making huge money

Health care in the USA: 1930s

FDR creates social security for retirement/unemployment but no health insurance

Health care in the USA: 1960s

LBJ creates Medicare and Medicaid over fierce competition (care= old folks; caid=poor folks_

Health care in the USA: 1970s-90s

Many attempts to create national health insurance fail

Health care in the USA: 2010

political miracle happens: Obamacare

upsides to our market system

state of the art tech

best med education and research

World’s best medical/surgical centers

Sloan Kettering, Mass Gen, Cleveland Clinic, Mayo Clinic, UCLA

Healthcare bottom line

17% of American economy goes to healthcare

we pay dramatically more (>4 trillion

Life pro tip

save for everyone’s elderly care