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Ask HN: Xray cost – USA $200 (13000 INR), India 1000 INR – what causes 10x diff?
https://www.medifee.com/treatment/dental-xray-cost/
http://health.costhelper.com/dental-x-ray.html
Why would a full mouth xray cost be this different, there may be some difference in few aspects but what adds up to more than 1000% difference?
- itamarst 9y ago1. Labor costs. 2. USA has insane health system where everything is more expensive than it has to be because "freedom". You can remove that 2nd factor by comparing costs with country that has a sane socialized medicine/single payer system.
- narrator 9y agoIndia doesn't have socialized medicine. It's still 10x cheaper.
- vinothgopi 9y agoAdam made an episode explaining medical costs and why it is so high. It will at least give you a different perspective into the system. https://youtu.be/CeDOQpfaUc8 https://youtu.be/CeDOQpfaUc8 So adding on to the labor/fixed cost increase, prices are just inflated since insurance pays for them anyway. In India, people don’t really consider insurance for such routine work due to the hassle of processing the claims too.
- TkTech 9y agoTo compare, in Canada where medical coverage is socialized but dentistry is [usually] not, the cost of a set of x-rays (2 or 4 shots) maxes out at $100-$200 when uninsured.
- ajeet_dhaliwal 9y agoI had 2 shots done last week in the UK, only £20, I think it’s partly subsidised by NHS.
- kansface 9y agoThe US health system is probably subject to the least "freedom" of any industry in the US - possibly the world.
- chadash 9y agoThe xrays are probably almost identical. The difference is that dentists simply charge much more in the United States. The median dentist salary in the US is about $150,000 [1]. In India, the median dentist salary is 344,000 INR, or about $5,250. Some of this can be attributed to general differences in labor costs between the US and India. With few exceptions, most service industries in India are going to charge less because it's not as wealthy of a country. However, the biggest difference is that Americans are simply used to paying absurd amounts for medical care of any sort. There are a variety of factors at play, including strict limits on the number of dentists graduating each year, dental insurance coverage (most dental insurance plans cover x-rays, so people with insurance tend not to consider the cost), etc. [1] http://www1.salary.com/Dentist-Salary.html http://www1.salary.com/Dentist-Salary.html [2] https://www.payscale.com/research/IN/Job=Dentist/Salary https://www.payscale.com/research/IN/Job=Dentist/Salary
- sp332 9y agoI was thinking of this a couple of days ago when an uninsured person got an estimate of $25,000 for dental surgery. https://twitter.com/ForgetAmnesia/status/912456274532585472 https://twitter.com/ForgetAmnesia/status/912456274532585472 https://twitter.com/ForgetAmnesia/status/912369049958584320 https://twitter.com/ForgetAmnesia/status/912369049958584320 I wonder if the increasing specialization is driving costs up too. If you have fewer patients you might feel pressure to charge each one more instead of admitting that you picked too small a niche.
- zerohm 9y agoAlso, all the operational overhead in that US dentist office will cost more than the Indian side. The secretary, the assistant, the building lease, etc. (I'm not saying that we can't fix the problem of overpriced healthcare, I'm just saying it's a contributing factor) Strangely though, the US enjoys lower prices for consumer goods like fashion brands, and consumer electronics. Nike shoes and a Sony TV will be more expensive in India than the US.
- jogjayr 9y ago> Strangely though, the US enjoys lower prices for consumer goods like fashion brands, and consumer electronics. Nike shoes and a Sony TV will be more expensive in India than the US. That's not strange at all. India has import duties on many goods, especially electronics.
- pravula 9y agoLook at how much the insurance company actually pays for that $200 xray. It may be comparable.
- simonh 9y agoThis summer I was in China as my wife is Chinese and everybody was complaining how expensive everything is these days. The thing is salaries in China have gone up hugely as well and that is mainly why prices have gone up. If the workers in a factory are paid 5x as much as 15 years ago, the lorry driver taking the goods to the shop is paid 5x as much, the shop assistants are paid 5x as much, etc, etc then the goods sold in the shop are pretty much going to have to cost 5x more than they used to. Same thing here. The rent on the dentists office costs more, the dentist is paid more, the utility bills cost more, medical practitioner insurance costs more, the receptionist is paid more. You can’t have many times higher salaries in the US and not expect things to cost more than they do in somewhere like India.
- wonderous 9y agoHousehold income for the average house hold has not increased that much: https://www.advisorperspectives.com/dshort/updates/2017/09/19/u-s-household-incomes-a-50-year-perspective https://www.advisorperspectives.com/dshort/updates/2017/09/1...
- simonh 9y agoI was talking about China as an example of how average wage increases, in China, are linked to changes in the prices of goods and services. So just as these things are different in China between then and now, so we can see that these factors can affect prices in India versus the USA or other western countries (I live in the UK).
- jimmies 9y ago> If the workers in a factory are paid 5x as much as 15 years ago, the lorry driver taking the goods to the shop is paid 5x as much, the shop assistants are paid 5x as much, etc, etc then the goods sold in the shop are pretty much going to have to cost 5x more than they used to. I think that is not necessarily true in all cases: Not every cost scales the same way. If the operation depends on human labor, such as in the food industry, then that would be true. The human cost in many operations going up up 5x, yet the iPhone and the xray machine cost the same pretty much everywhere in this world. It is cheaper to obtain and use an iPhone in the US than it is in, say China. How much does the machine is factored in as part of the bill in the US?
- exabrial 9y agoJust curious, what country was the machine developed in and originally certified in? It seems a lot of medical stuff is developed American health companies, certified by the FDA, then exported... Not the other way around.
- jacquesm 9y agoLots of it is made by Philips and Siemens as well as a huge number of Japanese manufacturers. GE is big in healthcare equipment too and there are many lesser known medical equipment manufacturers all over the globe. In all it is definitely not an American affair.
- athenot 9y agoEurope too develops a lot of tech[1]. And uses it for a lot less than the US. In France (Paris area), the price for a dental visit including 1-2 xrays is €42.00[2]. This is the pre-negotiated rate between dentists and the state insurer. Dentists are free to charge more but they must display prominent signage indicating they don't follow standard rates. [1] Peruse this catalog and notice the European companies in here. http://www.medicalexpo.fr/fabricant-medical/systeme-radiographie-dentaire-28182.html http://www.medicalexpo.fr/fabricant-medical/systeme-radiogra... [2] https://www.ameli.fr/essonne/chirurgien-dentiste/exercice-liberal/facturation-remuneration/tarifs-conventionnels/tarifs#text_10295 https://www.ameli.fr/essonne/chirurgien-dentiste/exercice-li...
- spapin 9y agoDo you think pharma companies that develop this are going: "we will develop an X-Ray machine, and only Americans will pay for it"? I would assume they try to get a profit anywhere they sell it. Which means $20 x-ray is a realistic profitable cost per x-ray. But the US healthcare is so broken that they manage to extract 10x more money out of it.
- mitchellst 9y agoActually... kind of. Imagine you're a French pharma company. You know the US is the richest country in the world and spends a quarter of its massive GDP on healthcare. When you put together R&D budgets, it makes sense that you plan to recoup most of your investment in the US, and that US FDA approval is one of your most important goals. Of course they want a profit anywhere they sell it. But the calculation would change if the US health care system weren't so "messed up." You may not make the investment at all, because you couldn't recoup it over a reasonable timeline without the margins you get in the US. The US rewards advanced medical tech development more than any other country. There are many things wrong with our system, and this might be related to some of them. But on its own, it belongs in the W column.
- galadran 9y agoMore appropriate comparison would be to the UK where the cost of a private dental X-ray is between £9-£14 ($14-$22) [1], although realistically you would want a consultation as well. Most Brits use the NHS (state socialised) which provides a checkup and treatment for ~£20 for simple cases including x-rays [2]. Note that [2] is costs for an entire treatment which might be multiple visits and laboratory work. [1] http://www.whatclinic.com/dentists/uk/x-ray http://www.whatclinic.com/dentists/uk/x-ray [2] http://www.nhs.uk/NHSEngland/Healthcosts/Pages/Dentalcosts.aspx http://www.nhs.uk/NHSEngland/Healthcosts/Pages/Dentalcosts.a...
- tonfa 9y agoI think it's similar prices in France, xray+consultation is in the order of 60 EUR.
- pjc50 9y agoNote to non-Brits: NHS dentistry (and opticians) are a little different from the rest of the NHS, in that not everything is free and the NHS services are oversubscribed, so people tend to go private.
- shoo 9y agoThe nhs seems fairly impressive & well regarded internationally. That said, anyone have some data on the quality of dental work done in UK system vs that of other countries? Anecdotally i know a couple of people who lived in UK and moved to Australia have been pretty excited* about being able to access higher quality dental care to repair / mitigate earlier work done in the UK. * well, as excited as one can reasonably get about expensive, painful, time consuming dental work...
- dnel 9y agoThe dentist doing surgery under the NHS will be the same one doing a private appointment afterwards. The only difference is the price you pay after, not the quality of the work. Each dentist typically has a limited number of NHS patients on their books so it can be pretty hard to find one available NHS spaces but private dental is not expensive.
- bastijn 9y agoMy (somewhat educated) guess: 1. Hospital staff bills less per hour 2. They typically run cheaper systems (not top of the line but specifically made for India/Asia or refurbished. Can be up to 1/3rd of costs of western world system. 3. They typically keep their systems longer and have more exams to earn back their system costs. 4. Service licenses are cheaper due to labor costs. (24/7 support is cheaper in India) It not much different from why other costs of living are cheaper in India really. By the way. A lot of people go to private clinics where the differences are much less. More like 1/4-1/5th of the price.
- gorbachev 9y ago5. Greed The healthcare industry in the US operates on the principle maximizing profits. They excel at it at the expense of patients who have limited choices to comparison shop and/or choose their healthcare providers. Case in point. My daughter ripped up her lip pretty bad several years ago. It required immediate stitching to repair. At the recommendation of our family doctor we went to an ER known for doing good work. The stitching took 20 minutes. The bill came up at $11,000 USD. Or $30K / hr. That's nothing but greed. There is no reasonable explanation for that bill.
- bastijn 9y agoNote it might not be the greed of the hospital staff. Instead pharmaceutical companies might be charging ridiculous amounts for medication and operation supplies. In addition, a hospital is like a company. It must try to break even. Hospital management is presured to reduce costs as we have an aging population. Predictions are medical costs for the entire population will explode. Furthermore, the cost pyramid for Healthcare is an inverse one. The 5% chronically ill take 95% of the total costs. They cannot afford to entirely pay for their care thus hospital management is forced to get these costs reimbursed elsewhere. Which might be you. Aging population and the inverse Healthcare pyramid places hospital management in a difficult position where they would have to reduce costs to such an extent they cannot provide proper care. Their only solution is to get more money in so the debit/credit sides are in balance again.
- refurb 9y ago
- 2close4comfort 9y agoThe cost is inflated to what the insurance market will bear in the US, with no market pressure like that in India and people paying for what they use you have a much more realistic price.
- robocat 9y ago$30* for dental x-ray in New Zealand (private system). NZ has first world dental care. The price is from 2013, but straight conversion to USD will approximately offset inflation. Dentist's salary guideline: https://www.careers.govt.nz/jobs-database/health-and-community/health/dentist/about-the-job https://www.careers.govt.nz/jobs-database/health-and-communi... [*] https://www.consumer.org.nz/articles/dentists-fees https://www.consumer.org.nz/articles/dentists-fees
- jpollock 9y agoNote: NZ doesn't have malpractice insurance. [1] [1] http://www.commonwealthfund.org/publications/in-the-literature/2006/feb/no-fault-compensation-in-new-zealand--harmonizing-injury-compensation--provider-accountability--and http://www.commonwealthfund.org/publications/in-the-literatu...
- user-on1 9y agoWhat happens behind the screen where one country is able to groom healthy medical/ insurance system and other countries get infected with so called insurance systems. Is it about the consumers being weak or is it about the service providers being strong?
- sitharus 9y agoI think it's due to relative power of the consumers. In most medical and dental situations the consumer does not have a lot of power compared to the providers. A government-lead system can drive down to the cost of providing, eliminating the profit consideration. In New Zealand dental work is almost entirely private, there's no government backup for most people (there's an exception for basic work for those on low income). On the other hand dental insurance is almost unheard of so clinics can't ask for too much. Last time I had a checkup, 2 xrays and a clean and polish it came to NZ$160 and that wasn't at a cheap practice. Also removal of two upper wisdom teeth was NZ$2500 including sedation. It's been noted above that NZ doesn't require malpractice insurance due to the presence of ACC so this probably has a material impact on the prices.
- arjunvpaul 9y agoHow fitting that it took the longest article that TIME has ever published to explain this. Here is a link https://goo.gl/SAqq6F https://goo.gl/SAqq6F (the original is behind a paywall). If the only thing you learn is about the term "Chargemaster", then you are half way there in understanding this scam. I personally think YC should have a Call for Proposals just to disrupt the Chargemaster. Journalist and author, Steven Brill won the Sidney award for this work https://goo.gl/StZXGA https://goo.gl/StZXGA . He also later wrote a book on this called America's Bitter Pill: Money, Politics, Backroom Deals, and the Fight to Fix Our Broken Healthcare System . Amazon link here https://goo.gl/r2yk6A https://goo.gl/r2yk6A .
- mitola 9y agoIf i remember it correctly i did it in central european country privately (not public) for around 25 euros or something like that
- mitola 9y agoWhich is around 2 times more than in India.
- SilasX 9y agoThis just goes back to the cost disease problem we observe in health care, education, and housing in America.[1] My takeaway from the discussion is that the big cost inflators are: A) Litigation. Not that you can screw the customer without consequence everywhere else, but it makes the same conflict much more expensive and uncertain. In other countries, malpractice is handled by regulation, so suing over anything not covered by the regulators is virtually impossible. B) Lack of transparency; no one knows how much something should cost, and why, and what they're getting for the more expensive option, and also have the incentive to reduce it, so cruft can persist. You might be tempted to explain the difference by labor costs, which are higher in the US, but labor is also more productive in the US which should mostly cancel it out. Plus, in India they probably have to pay more for the equipment, which further mitigates the locality effect. [1] HN discussion linking to SlateStarCodex article: https://news.ycombinator.com/item?id=13613687 https://news.ycombinator.com/item?id=13613687
- golfstrom 9y agoMedical providers in the US do not compete on price. There is in general little to no price transparency, as everything is traditionally paid for by private insurance. So as a rule, dentists will charge the maximum allowed by private insurance for x-rays. In the US, people are complaining more and more about the cost of healthcare, but usually in terms of the cost of insurance. They never ask why providers charge what they do (p.s. - if you're in the hospital, don't ask your nurse to bring you a tissue, just buy some from the gift shop).
- mitchellst 9y ago"Charging the maximum allowed by private insurance" is the same thing as competing on price. You're just competing to please insurance plans, not consumers. Admittedly, the insurance plans have every incentive to play ball: they want to brag on large provider networks in order to sell themselves to employers/consumers, and every corporation and person in the US is legally obligated to buy health insurance, so they don't lose customers by failing to deliver value for money.
- alexanderstears 9y agoAnd health insurance companies have capped profit rates - the only way to return more money to shareholders is to cover more expenses. A $10 treatment means the insurance company gets to send about 80 cents to the shareholders, a $100 treatment means they get to send $8 to the shareholders. Is it any surprise that they don't really care about prices when they're incentivized to make prices more expensive and the law stipulates that you must buy health insurance if you can afford it?
- uberduber 9y agoYep. Before the ACA passed, 50% of my claims (of which I had many) would come back denied and I had to go through and appeal all of them. After the ACA, no denials. However, the actual prices have gone through the roof. Before the ACA, the total amount paid to Labcorp for some bloodwork was about $28 a few years ago, same bloodwork today I get a bill for $300. This year I needed some labs where my doctor normally charges $60. However, there was one test he couldn't do and I'm a hard stick, so he told me I should just get it all done at the hospital. I know hospitals are expensive, but I figured paying another $200-300 would be worth not getting stuck twice. When the bill came it was $1150 with the special test only being about $30 out of the $1150. Insurance never would've allowed this rate before but now they're incentivized to make prices higher.
- Gurushek 9y agoBrain less topic, everything depends upon value of the money (other bla bla things , cost of sources,workers salary etc). , example: 2 liter coca cola -78rs , in us 2.40$ (more then 220rs)
- user-on1 9y agoWould you buy coca cola if it costs $15 in usa?
- kalleboo 9y agoExcept there are many examples in this thread of other developed countries with high material and labor costs but that can still offer affordable private dental care. 2-3x the cost of India? Sure. 10x? Now it's starting to get out of wack.
- nickbauman 9y agoMostly for the same reason a Swedish bus driver gets paid 50x an equivalent Indian one does. Protectionism. Most of the "free world" relies on this practice of immigration control to keep wages high. You really don't want a free market unless you're from a poor country.
- nine_k 9y agoImmigration control is not only about the job market.
- gumby 9y agoNot to defend the appalling US system but the costs of operating a dentist's office in the US is higher. There are environmental laws concerning the chemicals used and disposal (if you drill into someone's legacy mercury filling you have to dispose of the debris carefully for example), drug handling and disposal, and of course malpractice insurance premiums. All that being said, dentists in the US make out like bandits.
- appleiigs 9y agoThis is a classic economics 101 topic (Purchasing Power Parity). Prices should equalize, but can't due to barriers such as customs and immigration laws. Obligatory Big Mac index link: http://www.economist.com/content/big-mac-index http://www.economist.com/content/big-mac-index
- arjie 9y agoAmericans tie consultation to scans. The opinion on the scan is often done by the same establishment that does the scan. But diagnosis is hard, and operating a machine not as hard. America doesn't allow market principles to handle operation because it's hard for an efficient market to apply in diagnosis. Tying these two things together, with the additional weight of the unwieldy insurance industry with its inefficient pricing means that everything costs more. This is not to mention the fact that insurance's regulatory capture is choking the industry. Besides, Americans don't know how to run a market in health. It's a cultural thing. They deify classes of people and then have trouble fitting them into reality.
- benevol 9y agoPut very simply: It's a corrupt system. And it's been know for a long time, so the only thing that's new is that some people are becoming aware of the degree of corruption.
- refurb 9y agoCorruption how? Just calling it corruption isn't really that helpful.
- krzyk 9y agoWow, so the cheapest panoramic x-ray is $60 in USA. I paid for mine in Poland 34 PLN (which is slightly more than $9), some time ago. And right now my dentist gets me those (and tomography when needed) included in the treatment price (which doesn't change depending on the fact if I need the scans). BTW. Dentists services are almost completely private in Poland - I don't know a single person that uses the dentists that are provided by the state (which are cheaper or even free). It is quite different for other health related professions.
- tryingagainbro 9y agosalaries. rent. assistants. employees to deal with insurance crap. INSURANCE--say, if you get mouth cancer 12 months later you'll sue them for missing it. most likely they paid 5-10 times more for the equipment, being USA and all.
- user-on1 9y agoSounds like we are paying so much money for a for a big lie.
- readhn 9y agoSimple: it can cost up to $300,000 to become a dentist in USA. It probably costs 100x less in India. Before dentist charges for that first X-ray he or she is already potentially a few hundred thousand dollars in debt... Folks would charge a thousand dollars for X-Ray if they could get away with it. Welcome to capitalism.
- pravda 9y agoWelcome to the sunk cost fallacy!
- manquer 9y agoTo get a good dental degree with masters in india without govt scholarship? It costs atleast 200-250 k USD . It is misconception that education is cheap here
- readhn 9y agothis is news to me that in India tuition costs are more expensive than in some public colleges in USA...
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- abhishekgarg120 9y agoYou should watch this. https://www.youtube.com/watch?v=CeDOQpfaUc8 https://www.youtube.com/watch?v=CeDOQpfaUc8
- jitendrac 9y agoThat is not true, X-ray in india costs around INR 300 ($5)to INR 120($2) based on the hospitals and trust managed orgs.
- user-on1 9y agoSo if there is a dental patient in America and if in case he can reach both a dentist in America and a dentist in India in exactly 1 hour, would he choose to go to dentist in India or dentist in America? Costs are as in title.
- sigmaintegrale 9y agoSorry for the broad reply but Supply and Demand; Cost of living. Plus we assume that the service in India is the same as the USA. USA also has much more overhead in running a company that India, which from what I understand is still very much a cash oriented society.
- starrychloe 9y agoLack of competition https://www.youtube.com/watch?v=fFoXyFmmGBQ https://www.youtube.com/watch?v=fFoXyFmmGBQ