Healthy Premiums: Why is your insurance so high?

HEALTHY PREMIUMS WHY IS YOUR INSURANCE SO HIGH? In 2010, the U.S. spent $2.6T on healthcare. That is: $8,402 18% of the per person U.S. economy Since 1970, healthcare costs have grown 2.4% faster than the GDP. In 2002, the average annual contributions for family coverage were: $2,137 Worker $5,866 Employer By 2012, that raised to: $4,316 Worker $11,429 Employer NEW MEDICAL TECHNOLOGY Technology is widely believed to account for at least 50% of the growth in medical expenditures since the 1960s. In the next 5 years, over $100B in additional cost is expected from non-pharmaceutical medical technology. $SSS$$$$S $$$$$$$$$ $$$$$$$$ $$$$$$$$$ A GE MRI machine can cost anywhere from $500,000 to $1.2M. PROVIDER PRICE INFLATION Providers fees are negotiated at higher rates by leverage in the market, not utilization or quality of care. According to the Centers for Medicare & Medicaid Services, "67% of the increase in National Health Expenditure is accounted for by price inflation." $$ 1999 $$ Job-based health insurance premiums grew 138% between 1999 and 2010, exceeding wage growth in the same period by 42%. $$ 2010 $$ Out-of-pocket costs outside of premiums rose 7.1% between 2009 and 2010, resulting in an average extra cost of $689 per person. LOW PRIMARY CARE USE Only 38% of the U.S. population has a primary care physician to act as that gatekeeer to specialists, which has been shown to lower costs. A study found that raising the supply of primary care 1 per 10,000 people resulted in a cost reduction of $684 per beneficiary. Higher primary care use could save $316B over a decade. HIGH SPEND ON CARE AND SPECIALISTS The U.S. spends about 90% more on healthcare when compared to other industrialized countries and 3 to 6 times more on specialist doctors. TO From 2007 to 2011, primary care salaries rose by 16.7% to an average of $212,840, and while specialist salaries grew at a slower rate of 15.6%, their overall salary was almost doubled, at $384,467. U.S. POPULATION GETTING OLDER Aging baby boomers, 26% of the U.S. population, are set to grow Medicare by an average of 1.6 million people annually. By 2030, over 37 million boomers will have multiple chronic conditions: 1 out of 4 will have diabetes. Almost 50% will be living with arthritis. More than 33% will be obese and living with the assosicated health issues. Baby boomers cost hospitals $10B more than the generation to follow. On average, a baby boomer's hospital bill was more than $1,000 higher than those one generation younger. 2$ GREATER PREVALENCE OF CHRONIC ILLNESS Nearly 50% of the population in the U.S. has one or more chronic conditions, like: Asthma Heart Disease Diabetes For those aged 20-74, diabetes is the leading cause of kidney failure, nontraumatic lower-extremity amputations, and blindness. 7 out of 10 deaths among Americans each year are the result of chronic diseases. The cost of chronic health conditions to the U.S. economy is more than $1T per year. 2$ FRAUD While the actual cost of healthcare fraud is not known, some 2011 estimates for Medicare and Medicaid alone put the total as high as $98B. 2$ A recent case involving fraud and improper Medicare billing was settled for $1.2M Charges were brought on a doctor for an alledged $380M worth of Medicare and Medicaid fraud between 2006 and 2011. Called the largest case of healthcare fraud in U.S. history, a large pharamceutical company settled fraud claims for $3B. O CARRINGTON PART OF THE DEVRY EDUCATION FAMILY SOURCES nter arg/balyfal07 w13478 heml - into blackimaging com/bid/92625/MRI-Machine Cost-ant-Price-Guite - unitetheatgrupcom/hm/UNH-Heath-Care-Costs pft kaserhealthmews. org/Stories/2012/October/25/heath- cae costs zpi - healthcostinsinte org/fies/HCCL_HCCURZOL1 pdf - pewresearthorg/taly number/baty toomers-TEtre/ fortes.com/stes/brutejapsen/2012/07/10/primary-care doctor pay jumps-past-20ON-as-obamacare-marie-push-rew-pay-methods/ nuseone.com/hursing-neNS-events/mare-news/The Baby-BoomersEZ%OK59-Massive-impart-on-ieath-Care.20946 aspu booz com/media/fie/137991 pf - sphts guuedu/departmerts/teatipolicy/dhp_putlications/puhpicats/dhpPubication_89547FCO-5OS6-9D20-SDDBAE5647051078 pdf furtes.com/sites/toddhion/2012/03/01/why-are-u-s-heath-ure ces-30-high/ - fartes Lon/stes/darmumo/2012/12/30/2012-the-year-in-tealthcare durts/- fats k org/thartusguPth-2666 teloine com/ansets/Drom-UnitedStunes/laralk20Asset5/Doruments/us_dcts2012_hidden.costsl12712 pdf - heathatairs org/heathpoliybriefstrietphpbrief_-T - odc gou/thranictisease/overview/ modernhesthcare.com/articde/20130S28/INFO/S03289983 - lfeinctoday.com/_res/2012/15/21/11792712-heath-tare costs rose faster than-indaion-tespte weak -econemylite healthrigov/publications/ikeraturereviews/impacoPrinayCareOnHeathcarelosAndPapulationteath pef - korg/teath-costs/isue-brielsnupshas-employer-health-insurance-costs-and-worker-carpensation/ arthive ahrg gov/neus,/neusroom/news-and-rumters,/030909 hmi - stgate com/business/aride/Chronic-ilness-cOSts-the economy-more-than-1-2520234 php %24 %24