A central reason U.S. health care spending is so high is because hospitals and doctors charge more for their services and there’s little transparency about why. There is no uniformity to the system, in which public and private insurers have separate, unrelated contracts with hospitals and doctors. The result is a tangled, confusing and largely secretive collection of forces driving health care prices higher and higher.
This isn’t possible in many other countries either because governments set prices for health care services or broker negotiations between coalitions of insurers and providers. Known as “all-payer rate setting,” insurers in these systems band together to negotiate as groups. In contrast, U.S. insurers closely guard the secrecy of their contracted prices with health care providers and negotiate individually. This is why a hospital hosting five patients for knee replacements might get paid five different amounts for the surgeries.
There seems to be so many possible solutions to reigning in our ever-increasing healthcare costs if only those in congress would be brave enough to actually try a few. Instead they seem intent on just complaining about the situation. That’s easy, solving it is where the work begins and I am convinced that those yahoos inside the beltway are just too lazy to do the work to actually affect the problem.
After putting in quite a bit of study in this area I have come to believe that the above quote gets to the heart of the problem. Like everything else in life if something is totally unregulated and uncontrolled it tends to move to an extreme. I will admit that there are many doctors who are the exception to this statement but overall doctor’s pay is out of control. When they believe that they are justified in charging me thousands of dollars for an hour of their time they need to be taught otherwise.
The way that hospitals set their rates is simply insanity. It has nothing to do with the actual cost of the service but more to do with getting the most possible. I love the quote above that “the result is a tangled, confusing and largely secretive collection of forces driving health care prices higher and higher”. As long as all of these price setting schemes are held behind closed doors our costs will inevitably grow higher and higher. Why can’t we understand that simple fact.
Even a simple solution such as allowing Social Security to bargain for lower drug prices has been deemed not allowed by many of the so-called leaders in our government. Until we can finally realize that at some level of regulation is necessary in order to contain our healthcare dollars we will continue to complain about costs but fail to do any real action to contain them. The rest of the world discovered these solutions years ago, when will we ever catch up with them?
But I’m just a simple guy so what do I know…..