Comments on: CEOs: Health Costs Disadvantage U.S. In Global Economy http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/?utm_source=rss&utm_medium=rss&utm_campaign=ceos-health-costs-disadvantage-us-in-global-economy The Policy Journal of the Health Sphere Thu, 24 May 2012 07:58:29 +0000 hourly 1 By: johnrgraham http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/comment-page-1/#comment-24965 johnrgraham Sat, 21 Mar 2009 00:07:03 +0000 http://healthaffairs.org/blog/?p=651#comment-24965 Nor does the BR study address the deadweight cost of taxation, which Goodman and colleagues to in neighboring entry. Nor does the BR study address the deadweight cost of taxation, which Goodman and colleagues to in neighboring entry.

]]> By: acavale http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/comment-page-1/#comment-24948 acavale Wed, 18 Mar 2009 02:47:41 +0000 http://healthaffairs.org/blog/?p=651#comment-24948 Why is it not surprising that the big wigs of the corporate world are the loudest whiners all the time. Did any if the CEOs ever mention that they get to write off every cent they spend on health coverage for their employees? Or that they spend much more on their executive travel budgets and bonuses than on their employees medical benefits? And I bet there was nobody in this "Business Roundtable" to offer any counter-arguments. While I agree with the previous comments, I am still struck by how even educated individuals keep mixing up "health care costs" with "health insurance costs"; and similarly "universal coverage" with "universal health care". It is abundantly clear for even the casual observer that "coverage" does not translate to "care" and while insurance costs have skyrocketed, the costs of care has actually stayed flat over the past 10 years or so. So, a medical procedure is actually cheaper in 2008 as compared to a similar procedure in 1998, with actually improved quality and safety features. For this cost structure to change radically, a significant shift must occur in the mechanism of buying and selling of medical services, with the elimination of a thirsty, hungry, unscrupulous middleman. Buyers of health care (individuals or companies) must be willing to negotiate directly with providers of such services and simplify transactions to a level whereby the convoluted machinations of current "coding/billing/revenue cycle management" become unnecessary and obsolete. Everybody will save a ton of money and effort if this were made possible. But alas, I have to wake up now to face reality....by the way, do we really think that these CEOs will stop whining if the government miraculously took over their entire health care expenditure? And will that suddenly make companies like GM more competitive in the global markets? I doubt it very much. Let's ask them to find something other than "health care" to beat up or better still, try making higher quality products or services that they can sell to the rest of the world! Why is it not surprising that the big wigs of the corporate world are the loudest whiners all the time. Did any if the CEOs ever mention that they get to write off every cent they spend on health coverage for their employees? Or that they spend much more on their executive travel budgets and bonuses than on their employees medical benefits? And I bet there was nobody in this “Business Roundtable” to offer any counter-arguments.

While I agree with the previous comments, I am still struck by how even educated individuals keep mixing up “health care costs” with “health insurance costs”; and similarly “universal coverage” with “universal health care”. It is abundantly clear for even the casual observer that “coverage” does not translate to “care” and while insurance costs have skyrocketed, the costs of care has actually stayed flat over the past 10 years or so. So, a medical procedure is actually cheaper in 2008 as compared to a similar procedure in 1998, with actually improved quality and safety features.

For this cost structure to change radically, a significant shift must occur in the mechanism of buying and selling of medical services, with the elimination of a thirsty, hungry, unscrupulous middleman. Buyers of health care (individuals or companies) must be willing to negotiate directly with providers of such services and simplify transactions to a level whereby the convoluted machinations of current “coding/billing/revenue cycle management” become unnecessary and obsolete. Everybody will save a ton of money and effort if this were made possible.

But alas, I have to wake up now to face reality….by the way, do we really think that these CEOs will stop whining if the government miraculously took over their entire health care expenditure? And will that suddenly make companies like GM more competitive in the global markets? I doubt it very much. Let’s ask them to find something other than “health care” to beat up or better still, try making higher quality products or services that they can sell to the rest of the world!

]]> By: Brad Flansbaum http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/comment-page-1/#comment-24947 Brad Flansbaum Wed, 18 Mar 2009 01:22:38 +0000 http://healthaffairs.org/blog/?p=651#comment-24947 Thanks Chris--my hunch as well. This study has been widely disseminated and quoted without any mention of labor and salary effects. The implications of competitiveness needs further clarification given this context. Hopefully, reader or HA all-star can comment further. Thanks Chris–my hunch as well.

This study has been widely disseminated and quoted without any mention of labor and salary effects. The implications of competitiveness needs further clarification given this context. Hopefully, reader or HA all-star can comment further.

]]> By: Christopher Hughes http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/comment-page-1/#comment-24946 Christopher Hughes Tue, 17 Mar 2009 20:51:50 +0000 http://healthaffairs.org/blog/?p=651#comment-24946 Brad, I think the economists will tell you that, in the long run, this expense all comes out of wages. Len Nichols of New America makes the point that, back in the good old days when we were the manufacturing center of the world, our effective oligopolies allowed us to pass on these costs in price to the purchasers. Now that we have real, vital competetion all around us, we can no longer simply increase prices [and it certainly won't come out of management's portion- my 2 cents], so it comes out of the wages of labor. Cheers, Brad, I think the economists will tell you that, in the long run, this expense all comes out of wages.

Len Nichols of New America makes the point that, back in the good old days when we were the manufacturing center of the world, our effective oligopolies allowed us to pass on these costs in price to the purchasers. Now that we have real, vital competetion all around us, we can no longer simply increase prices [and it certainly won't come out of management's portion- my 2 cents], so it comes out of the wages of labor.

Cheers,

]]> By: Kaiser Daily Health Policy Report Feature Highlights Recent Blog Entries « Eclectic Buzz Blog http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/comment-page-1/#comment-24945 Kaiser Daily Health Policy Report Feature Highlights Recent Blog Entries « Eclectic Buzz Blog Tue, 17 Mar 2009 18:51:05 +0000 http://healthaffairs.org/blog/?p=651#comment-24945 [...] Iglehart of the Health Affairs Blog looks at a new Business Roundtable report that looked at the difference in “value” of [...] [...] Iglehart of the Health Affairs Blog looks at a new Business Roundtable report that looked at the difference in “value” of [...]

]]> By: Health Care. (united health care, universal health care) » Blog Archive » The Worrisome Outpatient Trend: What Does Disease Management Have to Offer? http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/comment-page-1/#comment-24944 Health Care. (united health care, universal health care) » Blog Archive » The Worrisome Outpatient Trend: What Does Disease Management Have to Offer? Tue, 17 Mar 2009 03:30:24 +0000 http://healthaffairs.org/blog/?p=651#comment-24944 [...] the U.S. cannot be explained on the basis of wealth alone. This kind of white paper the DMCB likes. So, apparently, does the White House. And so should DMCB readers, so we can be better informed about where the opportunities lay when it [...] [...] the U.S. cannot be explained on the basis of wealth alone. This kind of white paper the DMCB likes. So, apparently, does the White House. And so should DMCB readers, so we can be better informed about where the opportunities lay when it [...]

]]> By: health http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/comment-page-1/#comment-24938 health Sun, 15 Mar 2009 00:02:19 +0000 http://healthaffairs.org/blog/?p=651#comment-24938 <strong>Health Affairs Blog...</strong> Bookmarked your post over at Blog Bookmarker.com!... Health Affairs Blog…

Bookmarked your post over at Blog Bookmarker.com!…

]]> By: Brad Flansbaum http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/comment-page-1/#comment-24935 Brad Flansbaum Fri, 13 Mar 2009 23:45:59 +0000 http://healthaffairs.org/blog/?p=651#comment-24935 John Could you comment on whether this value gap is really a hit on business competitiveness for US companies, or in the end, an invisible but very hefty chunk of effective lost wage from our workers, ie, cost passed on "to the little guy?" This is always bantered about, and it is unclear where the lost value occurs in the chain. Thanks Brad John
Could you comment on whether this value gap is really a hit on business competitiveness for US companies, or in the end, an invisible but very hefty chunk of effective lost wage from our workers, ie, cost passed on “to the little guy?” This is always bantered about, and it is unclear where the lost value occurs in the chain.
Thanks
Brad

]]> By: Donald Strombeck http://healthaffairs.org/blog/2009/03/13/ceos-health-costs-disadvantage-us-in-global-economy/comment-page-1/#comment-24930 Donald Strombeck Fri, 13 Mar 2009 18:11:16 +0000 http://healthaffairs.org/blog/?p=651#comment-24930 Yes, currently healthcare costs (close to 20 percent of the nation’s gross domestic product) are on a path to fracture and cripple our economy. Healthcare in America is far costlier and less effective than any other developed countries. Our life expectancy ranks about 37th in the world (about the same as Costa Rica where health care costs are about 10% of what they are in the USA). America cannot be a healthy nation when more than 40 million people have inadequate access to health care. Universal health care is essential for America's healthcare solution. Numerous research studies report that 8 of the 9 leading contributors to disease and death are life styles that can be prevented. Unfortunately, people have few incentives to change their living behaviors that would minimize medical problems. Essential behavioral changes will not become important until individuals pay for their unhealthful behavior. There are ways that this can be done with a program that provides health care for everyone and with a cost that is based on each individual’s lifestyle. Few suggestions offer ways to reduce healthcare costs by changing unhealthy lifestyles. The healthcare industry must change in many ways to reduce costs (such as ways to reduce medical costs in the Boston area that are twice those of costs in Minneapolis with no difference in effectiveness or in reducing mortality). The needed changes would be fought by this industry as well as by the medical insurance industry which would relish being the providers of mandated insurance coverage. There are many other changes that must be made. A plan to make this all happen and help prevent the crippling of the economy by our current system can be found at the website “Responsible and Fair Healthcare For All” at www.healthcareforall.us Donald R. Strombeck PhD DVM Professor emeritus University of California Davis Yes, currently healthcare costs (close to 20 percent of the nation’s gross domestic product) are on a path to fracture and cripple our economy. Healthcare in America is far costlier and less effective than any other developed countries. Our life expectancy ranks about 37th in the world (about the same as Costa Rica where health care costs are about 10% of what they are in the USA). America cannot be a healthy nation when more than 40 million people have inadequate access to health care. Universal health care is essential for America’s healthcare solution.
Numerous research studies report that 8 of the 9 leading contributors to disease and death are life styles that can be prevented. Unfortunately, people have few incentives to change their living behaviors that would minimize medical problems. Essential behavioral changes will not become important until individuals pay for their unhealthful behavior. There are ways that this can be done with a program that provides health care for everyone and with a cost that is based on each individual’s lifestyle. Few suggestions offer ways to reduce healthcare costs by changing unhealthy lifestyles.
The healthcare industry must change in many ways to reduce costs (such as ways to reduce medical costs in the Boston area that are twice those of costs in Minneapolis with no difference in effectiveness or in reducing mortality). The needed changes would be fought by this industry as well as by the medical insurance industry which would relish being the providers of mandated insurance coverage. There are many other changes that must be made. A plan to make this all happen and help prevent the crippling of the economy by our current system can be found at the website “Responsible and Fair Healthcare For All” at http://www.healthcareforall.us
Donald R. Strombeck PhD DVM Professor emeritus University of California Davis

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