One factor in government medical plans - costs are higher than they should be!

Many things influence the cost of group and individual medical insurance. One factor is the cost shift that takes place from MDs, Hospitals, and other providers. MedicAID (more so) and MediCARE pay providers significantly less than their real costs. They in turn charge higher rates (cost shift) to the commercial plans with which they work.

Thus, what we have is government medical programs working to control costs by under paying providers! A more effective approach, which would result in higher quality care for patients, would be to work on controlling inappropriate payments!

This video highlights the significance of this issue!


Suggest talking to state and federal legislators and ask - why is more action not being taken to stop this.

Another look at medical treatment costs

Have mentioned before the point - about 85% of each employer premium dollar goes to pay for medical treatment expenses. When we look at this 85% we find that 70% or more are connected to lifestyle choices.

We also know from studies and reports, such as a recent one from the National Institute for Health Care Management Foundation:

+ About 5 percent of the population is responsible for almost half of all health care spending in the United States.

+ About half of the U.S. population accounted for only 3.1 percent of all expenditures.

+ 10 percent of the population hogged 63.6 percent of all health spending.

+ The top 5 percent of the population accounted for 47.5 percent of all spending.

+ The top 1 percent of the population accounted for 20.2 percent.


What does all this tells us? Medical treatment costs are responsible for rising medical premiums not "big bad insurance companies"