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U.S. health care costs rise to 15.5 percent of gross domestic product

Saturday, March 26, 2005 by: Mike Adams, the Health Ranger, NaturalNews Editor | Key concepts: Health, Health care and Health care costs

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Summary

Health care costs have risen for year after year, and now account for 15.5 percent of U.S. gross domestic product. Health care spending is projected to top $1.9 trillion in 2005, about twice what is spent on education. Advocates for single-payer systems believe that about half that cost goes to waste, unnecessary services, bureaucracy, and other unneeded expenses.

Original source:
http://progressivetrail.org/articles/050321SagerandDeborahSocolar.shtml

Details

  • As health care costs soar unsustainably, many employers, state Medicaid programs and the Bush administration want to force patients to pay more.
  • That's a cost-control strategy that cannot work, and it is adding to the tens of millions of underinsured Americans going without needed care.
  • Health spending in the United States is already enough to cover all Americans---if we better use the vast sums now wasted on ineffective care and paperwork.
  • Prompt action on health costs is vital to prevent a medical meltdown when our fragile economy stumbles.
  • Projected health spending of $1.9 trillion will consume 15.5 percent of gross domestic product this year---nearly double spending on education, and about 3.6 times defense spending.
  • Yet those nations have universal coverage, older populations, superior health outcomes and greater patient satisfaction with care.
  • We can convert our high spending from a burden to an opportunity---because about half of current spending goes to unnecessary services, needless bureaucracy, excessively high prices and other wasteful expenditures.
  • We must contain costs in ways that squeeze out waste, mobilize the savings to finance high-quality care for us all and pay hospitals, doctors and other needed caregivers adequately.
  • Many employers' current cost-control strategy consists of requiring higher patient payments---with the goal of spurring patients to use less care and think twice before seeking it.
  • Forcing patients to pay more cannot durably contain medical costs---especially because the majority ofhighest costs are incurred by physicians' complex decisions in treating a relatively small number of seriously ill people.
  • Using a single-payer plan also would facilitate negotiating lower prices with monopoly drug makers, replacing cost-shifts with genuine cost controls and achieving greater equity for patients and for caregivers.
  • If most doctors concluded that certain reforms could contain cost while protecting access and quality, the general public's hesitations would likely dissipate rapidly.

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