Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Why is US Healthcare So Costly?

Politics / Healthcare Sector Apr 07, 2018 - 10:16 PM GMT

By: Harry_Dent

Politics One of the Baby Boomers biggest concerns about retirement is the cost of healthcare.

It’s a big problem.

I have a concierge doctor, who I pay a fixed annual fee. This gets me free visits and discounts on blood tests and other things I need. On top of that, I have a high–deductible insurance policy that only covers unexpected costs over $6,000, like if I have a heart attack or something.


I’m accountable, which means I feel the expenses for my healthcare day to day, week to week, and month to month. I pay for my visits and expenses with a credit card linked to my HSA account. There’s no bureaucracy, there’s no paperwork, and there’s no confusion over what’s covered or not under the typical plan.

And there’s no illusion that healthcare is free after I’ve paid my premium!

As a result, I don’t go to the doctor just for anything… just because it’s covered on my healthcare plan! Millions of others do, though. Why wouldn’t healthcare costs be spiraling out of control when people have no incentive to monitor and control their costs?

And doctors must cover their asses against endless lawsuits, so they over-test and over-diagnose everything…

What the hell?!

Why should people win the lottery when doctors make a one-out-of-a-thousand mistake?

There’s a reason our healthcare costs about twice as much as it does in other developed countries…

Our system is full of B.S. special interests and insurance bureaucracy that adds layers and layers of costs!

Every step of this chain of special interests is locked in by decades of lobbying efforts.

Insurance companies are NOT in the insurance business. They’re in the bureaucracy business, charging for endless paperwork in what should be a straightforward, pay-for-service-as-needed industry.

But the trend of direct primary care, where people pay a monthly fee for doctors that give them more attention at a fixed and predictable cost is gaining traction.

There’s also a higher level of service – concierge medicine, where you may pay $200-plus per household a month. Like I said, that’s what I have. It’s well worth it because I get visits whenever I need them, and, more importantly, I enjoy preferred access to specialists like cardiologists and internists when I need them.

My primary-care doctor is more accountable to fewer patients and has a more predictable revenue stream.

My high-deductible insurance plan is exactly that: my insurance against the unpredictable.

Of course, health insurance has become a hornet’s nest kicked between Democrats and Republicans since President Trump’s election.

As far as Obamacare is concerned, what idiot couldn’t figure out that if you suddenly added tens of millions of new people to a system with near-term fixed professional skills and healthcare facilities you’d see costs skyrocket?!

It’s Econ 101 stuff: supply and demand! Or in this case, inelastic demand.

There’s no market with less rationality and greater cost disincentives than our very own U.S. healthcare system.

And there’s no way to fix this perverted, special-interest-driven system. It needs to break down and be re-created from the bottom up… period!

That starts with consumer-driven, direct primary care systems that make both doctors and consumers accountable for real service. Insurance is only for the more extreme scenarios, so it doesn’t add endless bureaucracy to the system… not to mention endless incentives to go for the “all you can test buffet.”

Insurance companies will, of course, hate this plan. How would they make as much money without their inherent bureaucratic B.S.?!

I didn’t set out to organize my healthcare the way I did, but many others do. I just did the logical thing.

I am the revolution.

And it’s going to take a revolution to change this overly bureaucratic and complicated industry, where every special interest has carved their fees, costs, and B.S. into stone.

It’s time to shatter those stones.

Harry

http://economyandmarkets.com

Follow me on Twitter @HarryDentjr

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.

Copyright © 2018 Harry Dent- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Harry Dent Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in