@balajis Democracy is a utopia at the world’s scale. Power dynamics exist. But those with power have to wield it somewhat benevolently to keep the peace.
@balajis The League of Nations that preceded WW2 failed because powerful countries did not dominate.
The UN reflects this reality by giving WW2 winners extra power to reflect their economic and military influence.
That means that providers have no incentive to operate in a lean way since every service will be reimbursed by a private payer that ends up diverting its costs to companies.
Patients in US healthcare have a low price sensitivity once they have insurance. And it is companies rather than the patients themselves that pay for it. 🧵
You can divide administrative expenses in health care into categories including but not limited to the following: 1) financial transactions ecosystem, 2) administrative clinical support functions.
Given its multi-payer system, the U.S. would be expected to spend more than it actually spends on non-medical, health-care costs. So basically all those related to administration and insurance.
(1/2)
U.S. health care has:
- a diverse and competitive multi-payer system
- multiple, different state regulations
From an administrative level of analysis, this makes it too complex.
No wonder administrative costs take up 25% of U.S. health care spending (vs. 17% in Canada).
That's exactly right. Private and public insurance work the same way.
The only difference is that the money that ends up going to executive pay in a private solution could go elsewhere.
For example, to cover the 31 million Americans uninsured if it were public.
If we get universal health care and my taxes end up going for other people's health care ...
I won't care at all because my premiums already pay even more for other people's health care plus a insurance executive's yacht.