HEALTHCARE MATH

Dave Lindorff, Counterpunch - As long as the health insurance industry is permitted to be the primary paymaster, the cost of medical care will continue to soar, not least because the insurance industry is so concerned about minimizing its own outlays that it is forcing the system to devote nearly 30% of every health care dollar spent to administrative costs (compared to 3-4 percent for Medicare, and even less for single-payer systems like Canada's), and because all the profit-motivated players in this game cheat and need to be monitored. That's true whether there is a so-called "public option" government-run health insurance plan or not. Note that 30 percent of America's $2.5-trillion health care bill per year is $750 billion a year, a sum which does absolutely nothing to make even one single person more healthy or less ill. . .

Medicare, the health program for the elderly and the disabled, and Medicaid, the federally and state-funded program that funds medical care for the poor, together cost some $850 billion a year. Add to that the $150 billion that hospitals and local governments spend annually to cover the uninsured poor who don't qualify for Medicaid, and the $50 billion the federal government spends for veterans' care. That's just over $1 trillion in government spending to cover the health care of roughly half the population of the United States.

The rest of us-working people and our families-rely on private insurance, some of it paid for by employers, some by us, either as our share of the cost of company plans (growing every year), or as the deductible and co-pay portions of our medical bills. That privately- funded medical care costs us about $1.5 trillion a year-50% more than the government spends on the medical care for a roughly equal number of people.