That's great.
Lets just continue with the current status quo private for profit approach to health care.
It works so well as to increasing competition and reducing medical costs to consumers.
NOT
The United States under a private for profit health care delivery system has the highest medical costs of any western nation for consumers for health care.
Tt ranks near the bottom in results.
There is a reason for those high costs.
It's due to private for profit health care providers rigging the health care delivery so called free markets to derive maximum corporates profits and ROI to shareholders.
It is due to the way the system actually works, not for the benefit of consumers but for the benefit of health care providers that are profit driven.
All of that Paul Ryan crap about not allowing insurance competition across state lines and that its government regulations that are driving health care costs up is total crap.
Politicians love sheep that base their opinions on not understanding how things actually function in the health care industry, who the players are and what happens under the covers to drive costs up.
A case in point:
"The basic design of artificial joints has not changed for decades. But increased volume about one million knee and hip replacements are performed in the United States annually and competition have not lowered prices, as would typically happen with products like clothes or cars. There are a bunch of implants that are reasonably similar, said James C. Robinson, a health economist at the University of California, Berkeley. hat should be great for the consumer, but it isnt.
Entire article at:
http://www.nytimes.com/2013/08/04/health/for-medical-tourists-simple-math.html?hp
By ELISABETH ROSENTHAL | Published: August 3, 2013
WARSAW, Ind. Michael Shopenns artificial hip was made by a company based in this remote town, a global center of joint manufacturing. But he had to fly to Europe to have it installed.
Mr. Shopenn, 67, an architectural photographer and avid snowboarder, had been in such pain from
arthritis that he could not stand long enough to make coffee, let alone work. He had
health insurance, but it would not cover a joint replacement because his degenerative disease was related to an old sports injury, thus considered a pre-existing condition.
Desperate to find an affordable solution, he reached out to a sailing buddy with friends at a medical device manufacturer, which arranged to provide his local hospital with an implant at what was described as the list price of $13,000, with no markup. But when the hospitals finance office estimated that the hospital charges would run another $65,000, not including the surgeons fee, he knew he had to think outside the box, and outside the country.
That was a third of my savings at the time, Mr. Shopenn said recently from the living room of his condo in Boulder, Colo. It wasnt happening.
Very leery of going to a developing country like India or Thailand, which both draw so-called medical tourists, he ultimately chose to have his hip replaced in 2007 at a private hospital outside Brussels for $13,660. That price included not only a hip joint, made by Warsaw-based
Zimmer Holdings, but also all doctors fees, operating room charges, crutches, medicine, a hospital room for five days, a week in rehab and a round-trip ticket from America.
We have the most expensive health care in the world, but it doesnt necessarily mean its the best, Mr. Shopenn said. Im kind of the poster child for that.
As the United States struggles to rein in its growing $2.7 trillion health care bill, the cost of medical devices like joint implants, pacemakers and artificial urinary valves offers a cautionary tale. Like many medical products or
procedures, they cost far more in the United States than in many other developed countries.
Makers of artificial implants the biggest single cost of most joint replacement surgeries have proved particularly adept at commanding inflated prices, according to health economists. Multiple intermediaries then mark up the charges. While Mr. Shopenn was offered an implant in the United States for $13,000, many privately insured patients are billed two to nearly three times that amount.
An artificial hip, however, costs only about $350 to manufacture in the United States, according to Dr. Blair Rhode, an orthopedist and entrepreneur whose
company is developing generic implants. In Asia, it costs about $150, though some quality control issues could arise there, he said.
So why are implant list prices so high, and rising by more than 5 percent a year? In the United States, nearly all hip and knee implants sterilized pieces of tooled metal, plastic or ceramics are made by five companies, which some economists describe as a cartel. Manufacturers tweak old models and patent the changes as new products, with ever-bigger price tags.
Generic or foreign-made joint implants have been kept out of the United States by trade policy, patents and an expensive Food and Drug Administration approval process that deters start-ups from entering the market. The companies defend this turf ferociously, said Dr. Peter M. Cram, a physician at the University of Iowa medical school who studies the costs of health care.
Though the five companies make similar models, each cultivates intense brand loyalty through financial ties to surgeons and the use of a different tool kit and operating system for the installation of its products; orthopedists typically stay with the system they learned on. The thousands of hospitals and clinics that purchase implants try to bargain for deep discounts from manufacturers, but they have limited leverage since each buys a relatively small quantity from any one company.
In addition, device makers typically require doctors groups and hospitals to sign nondisclosure agreements about prices, which means institutions do not know what their competitors are paying. This secrecy erodes bargaining power and has allowed a small industry of profit-taking middlemen to flourish: joint implant purchasing consultants, implant billing companies, joint brokers. There are as many as 13 layers of vendors between the physician and the patient for a hip replacement, according to Kate Willhite, a former executive director of the Manitowoc Surgery Center in Wisconsin.
Hospitals and orthopedic clinics typically pay $4,500 to $7,500 for an artificial hip, according to
MD Buyline and
Orthopedic Network News, which track device pricing. But those numbers balloon with the cost of installation equipment and all the intermediaries fees, including an often hefty hospital markup.
That is why the hip implant for Joe Catugno, a patient at the Hospital for Joint Diseases in New York, accounted for nearly $37,000 of his approximately $100,000 hospital bill; Cigna, his insurer, paid close to $70,000 of the charges. At Mills-Peninsula Health Services in San Mateo, Calif., Susan Foley?s artificial knee, which costs about the same as a hip joint, was billed at $26,000 in a total hospital tally of $112,317. The components of Sonja Nelson?s hip at Sacred Heart Hospital in Pensacola, Fla., accounted for $30,581 of her $50,935 hospital bill. Insurers negotiate discounts on those charges, and patients have limited responsibility for the differences.
The basic design of artificial joints has not changed for decades. But increased volume about one million knee and hip replacements are performed in the United States annually and competition have not lowered prices, as would typically happen with products like clothes or cars. There are a bunch of implants that are reasonably similar,? said James C. Robinson, a health economist at the University of California, Berkeley. That should be great for the consumer, but it isnt.
