Private Health Care, more expensive than I thought

According to CMS, US health care spending reached $4 Trillion in 2020.

SPENDING PER CAPITA.........

U.S. 2020 Population; 331 Million......https://www.worldometers.info/world-population/us-population/

$4 Trillion/331 Million = $12,114 per capita

https://www.advisory.com/daily-briefing/2020/04/03/health-spending

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Alright,

QUESTION: What's Private Health Care Per Enrollee Equates To?

ANSWER: According to Investopedia.....

In 2019, annual premiums for health coverage for a family of four averaged $20,576, single worker, the average premium was $7,188. Employers picked up 71% of that cost.

https://www.investopedia.com/how-much-does-health-insurance-cost-4774184

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Family of four averaged $20,576
Single Worker averaged $7,188

HOWEVER, I still can't figure out an average cost of Private Health Care Per Enrollee.

HERE'S AN IDEA......

Let's find out THE COST through a process of elimination.

Let's begin.......

Per enrollee, the most and least expensive Public-Sponsored health care programs;

Total Spending/Number of Enrollees

1. Medicare

Medicare advantage; $343B/26.4M = $12,992 per enrollee
Medicare Traditional; $401B/36.6M = $10,956 per enrollee

https://www.kff.org/medicare/issue-...age-in-2021-enrollment-update-and-key-trends/

2. VA Health

$97.5B/9.1M = $10,714 per enrollee

https://www.va.gov/budget/products.asp
https://federalnewsnetwork.com/vete...ar-another-record-high-budget-request-for-va/

3. Medicaid

$696B/80.5M = $8,645 per enrollee

https://www.kff.org/medicaid/issue-brief/medicaid-enrollment-spending-growth-fy-2020-2021/
https://www.medicaid.gov/medicaid/p...-enrollment-data/report-highlights/index.html

4. The Federal Employees Health Benefits (FEHB) Program

$60 billion/8 million = $7,500 per enrollee

https://www.opm.gov/about-us/budget-performance/performance/2020-agency-financial-report.pdf

https://www.opm.gov/healthcare-insurance/healthcare/reference-materials/fehb-handbook/

5. State & Local Employee Health Benefits, Insurance and Costs

$55B/7.8 million = $7,051 per enrollee

https://www.ncsl.org/research/health/state-employee-health-benefits-ncsl.aspx

6. Tricare

$49.5B/9.6 million = $5,156 per enrollee

https://www.health.mil/I-Am-A/Media/Media-Center/Patient-Population-Statistics
https://fas.org/sgp/crs/natsec/IF11206.pdf


Total Public-Sponsored Health Care Enrollees; 178.1 million
Total 2021 Public-Sponsored Health Care Spending; $1.702 Trillion
$1.702 Trillion/178.1 million = Average $9,556 per enrollee

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Private Health Care Plan Enrollees; 153 million (U.S. 331 Million Population MINUS Public 178 million Enrollees)

Private Total Spending; $2.308 Trillion ($4.01 Trillion MINUS Public $1.702 Trillion)

$2.308 Trillion/153 million = average $15,084 per enrollee

MAKES SENSE TO ME; Private $15,084 + Public-sponsored $9,556 = $2,515 Trillion Divided by 2 = Average $12,320

AND According to CMS; Total Spending $4 Trillion/331 Million = $12,114 per capita

Close enough!

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There are an awful lot of numbers listed here, but I would say that it does not make sense that private healthcare spending would exceed the cost of insurance premiums paid since the insurance companies are not in the business of losing money.

Your listed numbers said that the average annual premium for an individual with private insurance is $7188, and your "estimate" comes out to $15,084 per individual. I find it hard to trust an estimate that guesses the healthcare spending for private healthcare to be more than double the premium.

It has been reported that insurance companies earn somewhere around 5% of total billing. I think a more realistic estimate would be to take the $7188 figure and then subtract 5% but in reality, even that is likely high because that number for an individual is for an adult and logically kids would spend even less per capita. You could then take your $20,576 per family of four number, divide that by 4 and then subtract your 5%. Neither of those will get you an exact answer, but they will be far closer than a number that is twice the cost of premiums.

 

Health care is a private good. And is most efficiently provided for by the private market, not government. Nothing will change this. It’s like the laws of physics. You can call gravity racist all you want, it’s not going anywhere.

Health care benefits accrue to the benefit of the person receiving the health care far more than the positive externalities.

Economics dictates that the most efficient way to provide this service is not government.


Furthermore, calling health care a right is idiocy. You cannot have a human right that is conditional on another person providing you a service, unless you’re willing to go back to slavery.

 

One should however note that almost all government government programs substantially under pay actual cost of services which mean private health insurance providers must bear the cost of those under payments plus the number if so called free riders mostly poor people that fall through the cracks of the current disorganized mess.

 

Quote: Your listed numbers said that the average annual premium for an individual with private insurance is $7188, and your "estimate" comes out to $15,084 per individual. I find it hard to trust an estimate that guesses the healthcare spending for private healthcare to be more than double the premium.


ONCE AGAIN,

According to Investopedia.....

In 2019, annual premiums for health coverage for a family of four averaged $20,576, single worker, the average premium was $7,188. Employers picked up 71% of that cost.

https://www.investopedia.com/how-much-does-health-insurance-cost-4774184

QUESTION: Including both Family and Single Plans, what's the average cost PER PLAN?

ANSWER: Unknown!........Most sites I've googled split the cost between Single and Family, and that's the reason why
I had to calculate the cost of Public-Sponsored Per Enrollee, and then, firgure out the following equation;

CMS $4 Trillion Total Spending MINUS Public-Sponsred Total Spending = Private Total Spending

 

Did you care to respond to my point about your "estimate" coming out as twice the amount of premiums?

 

My final PRIVATE estimate equates to average $15,084 per health care plan.

AND According to Investopedia.....

In 2019, annual premiums for health coverage for a family of four averaged $20,576, single worker, the average premium was $7,188. Employers picked up 71% of that cost.

https://www.investopedia.com/how-much-does-health-insurance-cost-4774184

Thus, my final PRIVATE estimate equates to a cost BETWEEN a single plan, and a family of four plan.

Do you understand?

 

So between 5 and 7k per person? Good, that is precisely what I said. Your initial 15k number did not make any sense.

 

Your bald assertion and misquote aside... do you have any logical arguments for your tripe???

 

If I had found a site that showed ONE average cost per private health care plan, Bingo! However, no luck. You're welcome to look for it.

 

This is Australian but it might help

https://healthinsurancecomparison.c...MIxZ_qiae28QIV2QkrCh0ojQTrEAAYASAAEgLK_vD_BwE

 

One if the problems in this country is that we have the worst of all possible world half private and half public. And the public half could not work without the private sector absorbing a fair chunk of it's cost. And then of course pays taxes on top of that...

 

Ty, however, what I can't find is the following average;

For example; Apple Inc. USA

Apple directly employs 90,000 employees in all 50 states

Thus, if we were to assume that;

1. 20,000 employees are Single

2. 70,000 employees are Married, 3 dependents (Family of 4)

What we know;

According to Investopedia.....

In 2019, annual premiums for health coverage for a family of four averaged $20,576, single worker, the average premium was $7,188. Employers picked up 71% of that cost.

https://www.investopedia.com/how-much-does-health-insurance-cost-4774184

THUS,

20,000 Single employees X Average $7,188 = $143 million

70,000 Married employees (+ 3 dependents) X Average $20,576 = $1.44 Billion

Total Cost; $1.583 Billion

Average annual premiums per employee; $1,583 Billion/90,000 Employees = $17,588

AND said unknown PRIVATE health care average is the reason why I had to figure out an average PUBLIC-Sponsored

 

Apparently Private Health Care would save approx. $350 billion annually if their payments were at par with Medicare/Medicaid.

 

The prices for bills doctors and hospitals submit to Medicare and Private supplemental insurance companies bear no resemblance to reality and whet they settle for. They are usually off increased by hundreds of times what they have to accept, they make a mockery of reality. Our entire healthcare system or I should say lack of a healthcare system is a joke and needs to be brought into reality. We had a great low cost healthcare in place during the 1950's and 60's, once the 70's hit and the introduction of HMO's took place it went to hell in a handbasket and has worsened ever since​

 

Australia's health care system encourages the UPPER-CLASS/RICH to buy PRIVATE health care, and for said reason, it is a unique two-tier system.

 

How is paying someone for a service they provide slavery?

 

Well for starters for profit healthcare means the focus is on profit, not healthcare. And your second assertion is just plain wrong.

 

Fairly close I would imagine since the last I checked Medicare /Medicaid depending on whose estimate you take under pays at least 25%.

 

Question;

Per insured, Why TRICARE is significantly cheaper than Medicaid?

Medicaid

Estimated 2021 Total Fed/States Spending; $696 Billion
Number of insured (Jan 2021); 80.5M
Average Health Care Spending per insured; $8,645

https://www.kff.org/medicaid/issue-brief/medicaid-enrollment-spending-growth-fy-2020-2021/
https://www.medicaid.gov/medicaid/p...-enrollment-data/report-highlights/index.html

Tricare

2020 Appropriations; $49.5B
Number of insured; 9.6 million
Average Health Care Spending per insured; $5,156

https://www.health.mil/I-Am-A/Media/Media-Center/Patient-Population-Statistics
https://fas.org/sgp/crs/natsec/IF11206.pdf

 

Just guessing here but if Tricare is a policy for government employees not including teachers, the government holds a pretty big stick for all practical purposes being self insured, and with significant numbers of their employees being military and security and being able to access the VA system.

 

ANSWER:

Military Health System

The MHS has a $50+ billion budget and serves approximately 9.5 million beneficiaries.[4] The actual cost of having a government-run health care system for the military is higher because the wages and benefits paid for military personnel who work for the MHS and the retirees who formerly worked for it, is not included in the budget. The MHS employs more than 144,217 in 51 hospitals, 424 clinics, 248 dental clinics and 251 veterinary facilities across the nation and around the world, as well as in contingency and combat-theater operations worldwide.

https://en.wikipedia.org/wiki/Military_Health_System

 

Every country in the world that has a UHC knows that it is political suicide to try and take it down.

 

if you have a right to a service then that service provider does not have a right to deny it to you. What happens if every doctor quits? They can’t, not if I have a right to healthcare, which means they have to be forced to provide it whether that forcing is compensated or not, which is extraordinarily dangerous thinking because the logical end to that way of thinking is indeed the justification of institutions like slavery.

We have rights as identified in the constitution which is life, liberty and pursuit of happiness, and the moment you have the right to another’s labor then you are interfering with another persons right to the exact same thing. It is shocking you can’t see that.