Thursday, August 20, 2009
Healthcare expenditures account for $2-1/2 bill. of US annual GDP. Most of the $1 trill ($650 bill.) for healthcare reform will be spent over 10 yrs; the balance over shorter periods of time. Private health insurance industry collects at least $500 bill. yrly in premiums, at least 10-20% of which goes to profits and management expenses for these investor-owned providers. Overhead costs for govt run Medicare are about 3%; when private companies provide coverage for Medicare patients it costs the govt about 13%. The base of the healthcare problem is the fee-for-service, profit-driven system of delivery.