3 ms·
Keep in mind that 25-30% of current medical spending goes to administrative overhead, much of which is billing related. If that was eliminated or severely simpl
by ericd 8y ago
Keep in mind that 25-30% of current medical spending goes to administrative overhead, much of which is billing related. If that was eliminated or severely simplified, that would mean significantly more money for a given amount billed.
It's extremely bloated in other ways too. This isn't a streamlined system with nothing to cut. So I think it's a bit premature to say Medicare pricing is only possible because they're allowed to gouge others, there are many other levers.
- nwah1 8y agoIt's layers of markups and artificial scarcity stacked one on top of the other. Hospital associations that lock up their turf, and have geographic monopolies. Electronic medical record companies that create proprietary and incompatible standards. Medical device manufacturers that use regulatory capture at the FDA to ensure they have exclusive production rights. The American Medical Association restricting the supply of doctors and nurses, to keep their wages high. Pharmaceutical manufacturers making slight tweaks to existing drugs to extend their patents only to cease all production on the old generics... causing even simple things like insulin to be outrageously priced. Since insurance plans shield consumers from the costs, they have little or no incentive to price shop. So nobody notices these layers of markups, they just notice the big insurance premiums and assume it is all evil insurance companies charging too much when that is just the tip of the iceberg.