Wednesday, January 06, 2010

If You Think Healthcare Is Expensive Now.....

The Department of Health and Human Services released new data yesterday on healthcare spending and it reported that total health expenditures reached $2.3 trillion in 2008, or $7,681 per person. As a share of GDP, healthcare expenditures set a new record of 16.2%, which is double the 8.1% share of GDP in 1975, and more than three times the 5.2% share in 1960 (see chart above).

The chart below (
data here) shows what might be the two most important reasons for rising healthcare costs over the last 50 years: a) declining out-of-pocket payments for medical expenses, which have fallen from 47% of total health spending in 1960 to a record low of only 11.9% in 2008, and b) expanding public funding of healthcare, which reached a record high of 47.3% in 2008. There’s now been a complete reversal—whereas consumers paid 47% of total medical costs in 1960, it’s now the government paying 47% of health spending, while consumers pay less than 12% out of pocket for healthcare. That reversal is a guaranteed prescription for rising healthcare expenditures.

Unfortunately, under the proposed healthcare overhaul we’ll likely see a continuation of the trends displayed in the graphs—more government funding of the nation’s healthcare expenditures, less out-of-pocket spending by consumers, and rising healthcare costs as a share of GDP. If you think healthcare is expensive now, just wait until you see what happens after 2,000 pages of healthcare “reform.”

Read more at
The Enterprise Blog.

18 Comments:

At 1/06/2010 12:46 PM, Anonymous Anonymous said...

One very critical bit of data is missing from this graph, data prior to 1960. I recall sometime in the 1990s seeing a chart in the WSJ that clearly illustrated the exponential rise of healthcare costs starting around 1965. I agree fully with conclusions drawn from this chart, but how do we reverse the trend?

 
At 1/06/2010 1:28 PM, Anonymous Benny The Man said...

As with agriculture, and national defense, the feds will make health care horribly enfeebled and expensive.

 
At 1/06/2010 1:31 PM, Anonymous Benny The Man said...

This is a terrific article, from Dr Perry's beloved Cato Institute, on the horrible waste the feedral government has perped in the defense sector.

http://www.cato.org/pub_display.php?pub_id=10034

We can expect the same waste in health care.

 
At 1/06/2010 2:02 PM, Anonymous Anonymous said...

Economic freedom is almost 50 times more effective than democracy in restraining nations from going to war, according to the Economic Freedom of the World: 2005 Annual Report, released Thursday by the Cato Institute in conjunction with the Fraser Institute of Canada.

- CATO Institute

This argument is demonstrably wrong. Democracy, not economic freedom, restrains nations from going to war. No democracy has engaged another in warfare for almost two centuries. Zero. That record cannot be improved upon by economic freedom. Not once, not "almost 50 times". In fact, it has been democracies that have acted to restrain aggression against nations who, while relatively free economically, are/were not democratic.

The CATO Institute is not a "conservative" organization, it's "libertarian". They have adopted a decidedly "anti-interventionist" stance. While conservatives would find agreement with their arguments on economic freedom, they are unlikely to accept their stances on defense policy.

 
At 1/06/2010 2:12 PM, Anonymous Benny The Man said...

Anon-

If you like what the feds did to the ag sector, and the defense sector, then you are going to love what they do to health care.

Get out your wallets.

 
At 1/06/2010 2:19 PM, Anonymous geoih said...

Qoute from Anonymous: "No democracy has engaged another in warfare for almost two centuries. Zero."

How about the American Civil War? War of 1812? Hitler and Mussolini were elected into power.

 
At 1/06/2010 2:20 PM, Anonymous Anonymous said...

Benny, the broken record,

Unlike you, who favors taxpayer financing of trade with Castro, I do not favor agriculture subsidies.

Defense, on the other hand, is a legitimate function of government. And, while politicians may work tirelessly to corrupt the procurement process, the Constitution mandates it.

 
At 1/06/2010 2:24 PM, Anonymous Anonymous said...

How about the American Civil War? War of 1812? Hitler and Mussolini were elected into power.

How about a history lesson. The U.S. engaged itself, not another country, that is why it's called the Civil War. Britain was led by a monarch during the war of 1812. And while both Hitler and Mussolini were elected to power they had dissolved the democracies of Germany and Italy before beginning the war.

 
At 1/06/2010 2:41 PM, Anonymous Benny The Man said...

I do not favopr taxpayer subsidies for anything, including trade with Cuba.
What I said was, if you favor no restrictions on trade with Commie China, then you should favor no restrictions on trade with Commie Cuba too--if you want to stand on principle.
Or, you can be a modern-day feckless Republican, soaked in subsidies and taxpayer and lobbyist money, and support whatever you like, while waving a flag.
And the Dems are no better.

 
At 1/06/2010 2:58 PM, Anonymous Anonymous said...

There is no embargo on trade with Cuba. In fact, we are one of their largest trading partners. It's just that your feckless commie buddy has to pay in cash.

Or, you can be a modern-day feckless Republican, soaked in subsidies and taxpayer and lobbyist money, and support whatever you like, while waving a flag.And the Dems are no better.

No one is as pure as you, Benny.

 
At 1/06/2010 4:13 PM, Anonymous morganovich said...

how about a real history lesson:

franco roman war

spanish american war

anglo boer war

(arguably) WW I

WW 2 - finland

indo pak war

lebanese civil war (israel)

kargil war (india/pakistan)

israel lebanon war 2006

falklands war

etc...

 
At 1/06/2010 4:19 PM, Anonymous morganovich said...

oh, and don't forget the american indian wars. the Iroquois federation and many others were democracies.

 
At 1/06/2010 4:19 PM, Blogger juandos said...

Thanks again pseudo benny for showing us how regardless of the facts the reality challenged will plow on regardless...

So just how expensive would health care be if the following happens?

45% Of Doctors Would Consider Quitting If Congress Passes Health Care Overhaul

(courtesy of IBD)

 
At 1/06/2010 5:00 PM, Anonymous Anonymous said...

how about a real history lesson: franco roman war, spanish american war ...

HERE and read some of the rebuttals and counter-rebuttals. I stand by my statement.

 
At 1/06/2010 6:03 PM, Anonymous Benny The Man said...

The Ersatz Juandos-

Healthcare. under federal aegis, wil be as expensive as our ag. and defense sectors.

Which means, get ready for boodles of money to get lifted from your pcoket.

 
At 1/06/2010 8:56 PM, Blogger juandos said...

"Healthcare. under federal aegis, wil be as expensive as our ag. and defense sectors"...

Still striving for the pinnacle of idiotic comments, eh pseudo benny?

All this has already been explained to you numerous times replete with linkages you could've tried to rebutt but you didn't...

 
At 1/06/2010 9:29 PM, Anonymous morganovich said...

anon-

you just sent me a link disproving your own argument while claiming to stand by it.

did you even read it?

this is a better list:

http://users.erols.com/mwhite28/demowar.htm

if you're going to hide behind "anything less that universal franchise is not democracy" then there haven't really been any democracies for more than about 60-70 years.

but even then:

First Indo-Pak War, 1947-49

* Democracies: India vs. Pakistan.

Lebanese Civil War, 1978, 1982

* Democracies: Israel vs. Lebanon.

Croatian War of Independence, 1991-92

* Democracies: Croatia vs. Yugoslavia. (even weart admits this one and he's an utter zealot on this topic - we tore his work apart in college)

also the french occupation of the rhur. invasion is war.

you could make an argument for the US and panama as well.

 
At 1/07/2010 10:41 AM, Anonymous Anonymous said...

you just sent me a link disproving your own argument while claiming to stand by it.

Hardly. I'll let others decide for themselves whether Pakistan has ever been a real democracy. The other examples have similar problems. For instance, Israel invaded Lebanon because it had become a haven for Arab extremists who the Lebonese government was too weak to control. Israel was supported by a significant portion of the Lebanese population, etc.

 

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