Wednesday, September 2, 2009 9:02 PM CDT
LETTER: Health care, not just insurance, cost is high
By ROBERT W. BROWN, Casey
The problem with our health care system is that it simply costs too much. I am not talking about the rising price of insurance premiums. That is just a symptom. The outlandish charges medical providers levy on the public is the problem.
In the last one and one-half years, my health insurance has been billed close to $500,000 for cancer treatments for my wife. The thalidomide she takes didn’t cost over $10 per month when it was banned 40 years ago. Now that it is classified as a “cancer drug,” the retail price for a month’s supply is over $16,000.
After negotiations with our health insurance, the drug company lowered the price to just $5,500, that’s $195 per pill. I think it is laughable that Obama has the audacity to accuse the health insurance industry of excessive profit when this situation exists.
Is it any wonder health insurance premiums are out of sight? If your local body shop charged $50,000 to fix your dented fender, how expensive would your car insurance be? It doesn’t matter if you, your insurance, or the government is paying the bills.
The problem is the size of the medical bills. No health care reform has any chance of succeeding unless the rising cost of all medical care is brought under control. Typically, medical inflation increases two to three times faster than the national inflation rate.
May 12, 2008, US News and World Report stated the average hospital cost for coronary bypass surgery was between $70,000 and $133,000.
Medicare’s reimbursement on that same surgery typically runs between $18,600 and $23,590. Obama’s “public option” will use the same reimbursement schedule as Medicare.
In other words, the “public option” would only have to pay $18,600 to $23,590 on that coronary bypass bill, while someone covered by a private insurance would be charged $70,000 to $133,000 for the same service.
The government can force medical providers to accept that lower payment. An insurance company cannot.
No business could remain solvent if their competitor’s expenses are two to five times less than their own. Obama has stated that we will be able to keep our current health insurance and the main reason for having a public option is to keep the health insurance companies honest.
But, when the public option runs all the health insurance companies out of business, who is going to keep the government honest?
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Jon Vanatta wrote on Sep 3, 2009 8:58 AM: