In which John discusses the complicated reasons why the United States spends so much more on health care than any other country in the world, and along the way reveals some surprising information, including that Americans spend more of their tax dollars on public health care than people in Canada, the UK, or Australia. Who's at fault? Insurance companies? Drug companies? Malpractice lawyers? Hospitals? Or is it more complicated than a simple blame game? (Hint: It's that one.)
For a much more thorough examination of health care expenses in America, I recommend this series at The Incidental Economist: http://theincidentaleconomist.com/wordpress/what-makes-the-us-health-care-system-so-expensive-introduction/
The Commonwealth Fund's Study of Health Care Prices in the US: http://www.commonwealthfund.org/~/media/Files/Publications/Issue%20Brief/2012/May/1595_Squires_explaining_high_hlt_care_spending_intl_brief.pdf
Some of the stats in this video also come from this New York Times story: http://www.nytimes.com/2013/06/02/health/colonoscopies-explain-why-us-leads-the-world-in-health-expenditures.html?pagewanted=all
This is the first part in what will be a periodic series on health care costs and reforms leading up to the introduction of the Affordable Care Act, aka Obamacare, in 2014.
Because they are all full of shyt and too many folks are blind and can't see what's going on.....They got people deeply fooled.....that changing prices changes anything.....smh😔......#1 first of all, the psychology behind raising prices was to get folks to think that the product was more valuable, so they could work harder to get something they are missing out on.....#2 lowering the prices won't do shyt either, due to the fact that most of these drugs are NOT constructed properly in the first place because if they were , then there wouldn't be any negative side effects to them or negative withdrawals.
Can we have just one fucking discussion about this without comparing the US to other counties?????? GERMANY DOES NOT HAVE A POPULATION OF 400 MILLION PEOPLE. Of course we spend more tax money on health care. Jesus Christ I’m sick of every single person wether they be left or right comparing the US with other conbtries. STOP IT. We have different obstacles and variables.
I don't get 6:15... Wouldn't competition between the drug providers encourage them to make their price as low as possible and their drug as effective as possible as to put the other providers out of business and gain the most costumers?
So what he's saying is that if we had a central planned economy, the regulators could more easily set health care prices lower. What he DIDN'T say is that they could also set YOUR prices, your wages, lower. I wonder how many people would be happy with their own wage cap set by remote regulators in relation to the rest of the entire national economy. Bye bye, labor unions. Bye, bye, salary raises based on personal productivity. What was the saying they had in the old Soviet Union where all prices and wages were standardized and centrally regulated by economic planning czars in Moscow, "They pretend to pay us and we pretend to work"?
It's because our healthcare system knows they can charge that much and still get paid. I'm going to say the big bad words but honestly "socialized" healthcare works and private healthcare is the exact reason we pay so much. But go ahead and keep telling me that privatized healthcare works so well!
America is all about profit, it's every where, bill boards, television adverts, magazines, stickers on buses and on vans even on taxis. I rest my case, but we still love coming to the USA regardless.
PS I'm English and live in Dorset, god bless the National Health Service. 🇬🇧🇬🇧👍
I think that the government should step in and make it against the law for companies to raise their prices but force them to give raises just enough that it gives the American working people a living wage but not enough to hurt the profit of businesses . Because I think business is like Walmart profit way too much money . Because assholes like Bill Walton and his brothers and sisters and the Hilton family or sitting on billions and billions and billions and billions of dollars oh and along with Bill Gates and Warren Buffett people in this category and a lot that I have not mentioned make billions and billions and billions and billions of dollars a year while the rest of us have to live on crumbs and it’s not fair. There’s nothing wrong with them wanting to be rich but it should be against the law for a company to be so rich that the average workingman Only has $100-$200 a month left over after he pays his bills . I’ve always wanted to own a new Corvette. And in the 60s and 70s the average working man could buy one. But now prices have gone up but job pay has not.!
Listen guys, the ACA has absolutely destroyed the private market for health insurance. Now if you are healthy and don't qualify for a subsidy, you are paying an arm and a reg for high premiums with a ludicrous deductible to satisfy, and on top of that, you are stuck in a limited HMO network!
There are newer plans out there that are able to reward a good bill of health!
If this sounds like the situation you are in, feel free to give me a message/call/text and I can see what options out there work for you.
Licensed Healthcare Adviser
Just Ask Google for knowing how universal healthcare works in the world… and know how many Universal healthcare nations (UHN) on this Earth right now – American people who are human deserve a better Universal healthcare system like those nations (UHN)
In a survey of 48 countries in 2013, Israel's health system was ranked fourth in the world in terms of efficiency, and in 2014 it ranked seventh out of 51. In 2015, Israel was ranked sixth-healthiest country in the world by Bloomberg rankings and ranked eighth in terms of life expectancy.
+Mad Max that's the case about the hospital costs but most of things and even the drug companies are cheap because of competition that the negotiations cause. And also it's not about individual effort. It's the mental makeup of 90% of indians who seek better quality at least prices
Not everything in the U.K is sunshine when it comes to healthcare.Dentistry can be very expensive if you need anything outside normal treatment.Lot's of people have poor teeth and care.Also social services have gone back.We have a shortage of nurses and their pay is poor.In America everything is about profit the Government should be ashamed the way people are treated.
Sure its not, same in the rest of western world, the point is that they won't let you die and you won't go bankrupt if you need a treatment, unlike in the US. Besides it, I think its correct that government doesn't pay for every cosmetic treatment.
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I’m from Canada. and I have a heart condition. I go through a lot of test once or two times a year for reasons I’ve never been told why? I never even thought about what you said about Mel practice till just now. My family has asked countless of times why so many tests with no answer. And the test results? Always the same or nothing we can do. And when I actually do need something it takes months or I’m too afraid of the tests to call.
It’s not a human thing to charge a person $450-700 a month for healthcare . It’s a crime! I live in NY and I rather to say without healthcare... The taxes are high , the rent is skyrocketing , there’s people that make $2000 a month and before they started the month they are already in debt from housing and health and it’s sad
I know this is almost six years ago, so John you probably won't read this, but please, everyone, make sure when you're talking about important stuff like this that you don't mix up "Great Britain" and "the United Kingdom". I know you know the difference, John, and weren't doing it because you're a moron, but probably because you were more distracted by more important things like the actual topic of the video. To those who are confused about the difference and how it is relevant:United Kingdom:- Is England, Wales, Scotland, and Northern Ireland. All are covered by the National Health Service (NHS) although it is called Health and Social Care in Northern Ireland and works slightly differently. All are free on point of access to UK citizens because our taxes go into it. Great Britain:- Is England, Wales and Scotland.Brexit should be interesting
it because when government pays people tons of money that is used for healthcare it brings up the cost. By privatizing the healthcare system companies would have to compete instead of getting paid by the ggovernment everyomne in the comments think its because companies are greedy but they are only greedy because they will never go out of business as the government will bail you out.
Stage one: America makes products that make America sick and keep those things a secret (ie. high fructose corn syrup and msg) so they don’t know
Stage 2: America makes their citizens sick
Stage 3: Americans seek out medical care
Stage 4: Americans pay a shit ton of money on health care costs because they make it expensive on purpose because they KNEW you were going to get sick anyway
And the cycle continues so you have to rely on spending money to be healthy
I'm watching this in 2019 while people with diabetes are going without insulin for days and some are dying because it costs so much and they can't afford it. So sad that it's been 5 and a half years since this video was made and so far health care has only gotten worse.
There will never be a Healthcare System in the US equivalent to the free Medical Care systems in Canada and Europe. Too many greedy big businesses lobbying against it (Pharmaceutical and Medical Insurance) that reap huge profits and to do this have to jack up the prices...that's why US Health Care costs are so high. Shame that systems that would benefit the whole never seem to materialize in the US. Why is there never a 'democratic' vote to adopt a better system...hmmm isn't the US the beacon of democracy?
Nice try........ but sigh I will, again. A tepid attempt at smattering us with statistics and conflated buckets of cost analysis all wrapped up as a comparison to the UK's NHS and blamo, it's as simple as collective bargaining on a mass scale that'll bring down out health care.......... except those inexpensive gall bladder operations, hip replacements and a plethora of other bargained for medical situations are not real deliverables in the U.K. are they? Well maybe in six months if you're fortunate, or what if you're end of life options are considered or determined zero because the resources just are not there? A British citizen can't appeal that decision made not to save their life can they? Unless they have enough money to pop on a plane and get to the United States where there's a huge choice to be had and many options available - why not ask Americans, those 80% whose children and entire family are currently fully covered privately to give up all those options and allow the government to manage the family's healthcare from now on? You know, like Medicare for all.......... as one would respond in England, "bullocks!" The solution is not easy, simple or even close to being worked out, but until we get to that place where America can maintain its place as the premier provider of healthcare to the world and begin to offer those same high standards at even lower prices than the very best well-run collective, let's not toss everyone off of this system and get us all on the government run system just because
Switzerland NEVER had "FREE" healthcare, and only got universal healthcare since 1996, and that's only by compelling every citizen to purchase a basic package from one of the government-approved PRIVATE health insurances. Besides that, except the teaching/university hospitals, (which are no more than 6-7 in the entire country), all other hospitals and clinics are private. Yet, Switzerland has got one of the best systems in the world. Then, the Netherlands privatized their ENTIRE health care system about a decade ago, and they are now among the top-5 countries with the best health care. Socialized health care is a humanly good thing, but it is simply not sustainable over longer periods of time. Australia might not be suffering now, (which I doubt), but you'll see in 10-20 years. The British NHS is crumbling, the Canadian system is and always was shitty, the French system is on the verge of a collapse, in Russia and Brazil it has never worked properly, Singapore, South Korea and Japan also started having some problems since recently, Sweden has got many problems with its entire welfare system and decided to privatize its pension funds a few years ago... and it's only bound to continue that way, until they realize they have to privatize their system. Growing yet aging population, expensive treatments, immigration... all those are factors which exacerbate the socialized health care systems around the world.
P.S. As someone living in a country which has "free" health care, and additionally, private practice is not that developed, because of the government restrictions, I would chose the American system ANYTIME!
Everyone should have a primary care physician and only pay when we are healthy. That would give doctors motive to actually cure your illness instead of stringing you along as long as possible prescribing drug after drug for the kickbacks from the pharmaceutical companies.
I may be wrong, but prove it.
Turned it off when the first actual justification was a lie. Hip replacement can cost over $100,000 whereas average cost in Belgium is $13,000. "Can cost" vs average cost...sirens should go off. The average cost of hip replacement is $21,000 in the US.
But that is still more here, right? The devil is in the details. When the government is paying, it is easy to hide costs. That guy cleaning up after the operation? Government employee in Belgium. His salary in Belgium is doesn't contribute to the cost, but it does for the surgery done here in the not for profit county hospital in your town.
@1:43 Sorry, but the USA it's not richer than other countries. You have a the highest population our of all the 1st world industrialized nations and therefore a much bigger economy. But on an individual level your wealth is equal or worse.
Why cant you get medical help over the taxes? What do your taxes cover? Beeing in the hospital here is free. Going to your doctor will cost you around $10 - $15. Everyone has a GP and that GP know all about your medical background. If you should swap your GP because of moving etc. you just do that online. The former doctor will send all your medical background to your new one. This practice makes you feel safe and it doesen’t cost you and arm&leg.
US spends 17% of their GDP on healthcare. Most other developed countries spend around 10%.
The difference is approx 2x the amount that the US spends on its armed forces (3.6% of GDP).
The outcome: no difference in healthcare quality and worse life expectancy in the US.
Capitalism forces people to stop seeing people as human beings. They are forced to see them as financial instruments.
When you make money the object of health care. Then the policy becomes; hurry up and die.
Personally, I believe that their are some aspects of our lives. Where Capitalism does not belong.
If you have a medical emergency? Do you get to do market research?
Find the best provider at the right price?
Nope, you are forced to hand over your lifes savings. When that doesn't cover the cost. You are forced into bankruptcy.
If you do not have money. Then you get the bumb treatment.
The bare minimum to comply with corba.
No wonder people hate the American Government. Let a fool bleed to death at a hospital because he doesn"t have insurance.
Let a fool starve to death because he is homeless without an address.
Shoot a fool for reciting his constitutional rights.
Ashamed to be an American.
American healthcare is awful and won't be able treat anybody unless you got a job covered the proportion of health problems or you better be rich. Americans are idiots and refused to have universal health Care as why I don't even understand it at all
The democrats are out of control. They deliberately raise the prices on everything..... Destabilizing your nation.... that puts you all your people in debt, then they borrow from other countries to get rich. Other nations own you in the process. Pathetic. Nationalism is the only way to save your culture n way of life.
Imagine how insane health insurance would sound if it was some other kind of insurance.
Imagine buying insurance for your car that covers not just accidents but breakdowns too. And maintenance. Oil changes and tire rotation, and even replacement of those parts that routinely wear out (brake pads, tires). So if a light bulb on the car fails, you take it to the shop and pay a tiny "deductible" to get it fixed, with the rest covered by your "insurance".
What could go wrong?
Well, the insurance company negotiates deals with the mechanics and the mechanics negotiate deals with the parts companies. If you want to change a light bulb yourself, ... good luck finding a company that will sell you just one, and you'll probably pay five times what a mechanic would. So now you really need that "insurance" to be able to afford to maintain your car.
And what do you do when your insurance company decided your car is too likely to break for them to be willing to insure it? Not like your make and model, but your specific car? You can't afford to maintain it yourself, and you can't sell it because it is uninsurable.
Decades ago my father bought a car insurance plan that included an auto club plan: free or discounted roadside assistance and towing. The next year they refused to renew him because he had "filed too many claims", by which they meant that he had called a tow truck for a jump start three times.
Things cost less because the government says they cost less.... You can't bring that kind of totalitarian system to the U.S.
And when they try (Medicare) doctors just don't take that form of insurance so they are functionally uninsured.
How does obesity not effect the healthcare costs? That's clearly not true..... Obesity leads to heart/cardiovascular problems, increased risk of cancer, diabetes, increased risk of surgery failure. And if I'm not mistaken obesity is the 3rd leading cause of death in the U.S.
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Everyone in the comments is criticizing America, and, well, okay. But the whole point is to show that there isn't a simple reason. It's crazy that it's begin pared down to "corporate greed" or "the president," ignoring the fact that other factors were present and listed. This gives NO reason to believe that corporations are more greedy in the US- it explains why the same effects of the fact do not fully emerge in some other countries. Congrats, you missed the point.
Im very simple terms. Helath6care providera and pharmaceutical co are allowed to charge whatever they want. Thay says everything you just said in a much simpler way. Yet dose not nearly as clearly state it either.
Part of the higher cost in health care in the usa is because most countries do not spend no where near enough money on defense and just rely on the usa to defend them mainly in Europe in nato they don't even spend two percent of their gdp in defense. The second reason is the usa creates the majority of all of the new drugs the reason for the huge cost of them in the usa is nations with universal health care tell the drug companies how much they can charge for it despite the cost in developing the drug and the cost of running the business and advertising the new drug. Another reason why it cost so much is the paperwork to charge the insurance companies and all the people who have to work there to fill all of the paperwork out and. The doctor I go to there are two doctors there and three or more people who are the receptionist and to fill out all of the paperwork then you have the nurse then the doctors who need to be paid 30% of the cost is because of the paperwork. And all of the illegal immigrants and people who don't pay their doctor bills that cost has to come from somewhere
+Daniel Opel You know Turkey is a NATO member, correct? It's been fighting in Syria for years.
France also deploys a lot of troops. 36 thousand of them right now are deployed outside of France. A few years ago, France did the bulk of the work of forces that weren't African in the Mali conflict, with about 4000 soldiers. It lasted 18 months.
+Robert Jarman no nato country besides the usa can go into sustain conflict let alone a war in Libya besides it being a quick war Europe was running out of weapons Germany most if not all of their weapons of war were not battle ready
+T B The thought experiment around NATO GDP distribution was just an example.
Also, other countries don't go to war because they know they'd lose. A democracy can quickly turn to total war if it has to, and rarely are the political leaders in a democracy actually killed. The UK went from having a force of 247 thousand (which was for an empire much bigger than today) with no generals having ever commanded anything bigger than a division to one that spent 40% of it's GDP on the war and 3.82 million soldiers.
Today, both the UK and France have nuclear weapons, plenty to eradicate actual threats big enough to need a military more capable than that which Europe's army can deal with.
And the loss of such big economies would immediately cause a depression the world over, even for an attacker, which will hit them hard and fast.
The US doesn't really protect a defenseless continent. It's the benefits of peace and cooperation which does.
I know that the UK is small on it's own, but Europe is the size of the US, actually over 10 million square kilometres, the US is 9.5 million square kilometres, and the EU has 500 million people, the US has 326 million.
The pills are more expensive in America cuz the rest of the world copies are patent pills. And sells the cheaper in Mexico, India, ECT. Obama raise the price a prescription medication to support is Obama care plan. There will be no negotiations. The high price of prescription medicine is a hidden tax.
The root cause to the high cost of healthcare is: that 80% of all the healthcare customers have their healthcare paid for, by their insurance company. The healthcare insurance companies are in the position to demand and get (blackmail) the medical industry into giving them 70% even 80% off every line item on their customers bills. Hospitals, drug companies and medical supply companies can't stay in business and give such large discounts to such a large percentage of their customers base. So the medical industry up the prices 4x to 10x the real cost so they can give the insurance companies up to 80% off of everything on every bill.
The insurance companies end up paying the same "real cost" of medical bills they use to, before the 80% off demand because of the prices being inflated up 4x to 10x to cover cost.
If it was only the Hospitals and the insurance companies involve in this little blackmail game, would amount to nothing. The balance is back in place because the Hospitals/medical/pharma charge many times the real costs so they get the equality of the real costs after the high discounts (demanded by insurance companies)
The problem comes into play when the public have to pay their share of the healthcare costs (copay, 20% sometimes even 30% of cost, or the whole cost if uninsured ) and its not based on what the insurance pays with its discounts. The public pay based on the inflated costs(4x to 10x real cost) and can't afford their share of the costs. even end up going bankrupt in many cases, even if they had medical insurance.
If the healthcare insurance companies just paid the real cost of the insurance bill instead of demanding 80% percent off every line item on the bill. The hospitals would not have to rase their costs 4x to10x s the real cost just to get enough out of insurance companies to keep the doors open and the hospitals operating. and the system wide healthcare consumer fraud would not be such a national problem
Okay, it costs more, but WHY? Has John ever seen any lectures by Milton Friedman? When you do things a certain way, like involving the gov't, prices will be affected.
What John's ignoring is: 1) What is the quality of the care? 2) Why is health "insurance" being used to cover things which happen regularly? 3) Why do people get their healthcare via their employer (an unnecessary third party)? 4) The US has the best survival rates for many types of cancer, an area where medical care is the main factor.
If prices are "too high", what's stopping a new company from offering the same product or service at a lower price and stealing customers? The excuse of "greed" is illogical. Why are computers so cheap then? Clearly, the healthcare system and some regulations in particular are making it impossible to sell things cheaper, otherwise we'd see competitors undercutting each-other while also improving quality.
For the most part, the quality is similar across OECD countries.
However the US has the lowest life expectancy.
This is because countries that have Universal Healthcare look at the total cost and have figured out ways of preventing conditions. For the 30 million plus in the US that fall between the gaps, many end up deferring treatment until the condition becomes severe. Early treatment is very important for many conditions.
Not all forms of Universal Healthcare are the same. Some are a public / private hybrid which gives the people greater choice than in the US, where choice is often restricted by the insurance company.
Some public universal healthcare systems do not have any insurance.
Some countries subsidize pharmaceuticals, one of the best examples of this is Pharmac in New Zealand.
The issues of the mess in the US include and how to introduce universal healthcare, how to best reduce costs for the people.
WHAT ABOUT POPULATION SIZE???? COMPARING THE UK OR CANADA OR AUSTRALIA OR FRANCE OR SWEDEN TO THE US IS COMPARING APPLES TO ORANGES. MEDICARE FOR ALL IN THE US WILL NOT WORK AS SUCCESSFULLY AS IT HAS IN THE OTHER COUNTRIES I'VE MENTIONED. YOU MUST CONSIDER POPULATION SIZE AND NEEDS. THE US HAS A POPULATION OF OVER 325 MILLION PEOPLE, THIS IS MORE THAN THE ENTIRE UK, CANADA, AUSTRALIA, FRANCE, AND SWEDEN POPULATION COMBINED.
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