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Which firms profit most from America’s health-care system (2018)

economist.com

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Re: Which firms profit most from America’s health-care system (2018)

#21

Post by chewz »

SQL2219 wrote: post #2

from Wikipedia: The classic example of rent-seeking, according to Robert Shiller, is that of a feudal lord who installs a chain across a river that flows through his land and then hires a collector to charge passing boats a fee to lower the chain. There is nothing productive about the chain or the collector. The lord has made no improvements to the river and is not adding value in any way, directly or indirectly, exc…

This feudal lord probably have invested in an upkeep of few knights who enforce that chains stays in place. And then lobbied at the court against complaints from merchants and peasants. He might have also have to bribe few judges.

Also historically feudal lords had been constantly in debt spending more on representation then they have earned. Some moneylenders might have taken all this rent from river chain. Or the feudal lord have spent that income on luxury items stimulating demand for art or trade with far away corners of the globe.

This is an example of how economist have no idea how making money works..

Re: Which firms profit most from America’s health-care system (2018)

#22

Post by tluyben2 »

saddlerustle wrote: post #11
ntsplnkv2 wrote: post #6

> Everyone hates pharmaceutical firms, but their share of health-care rent-seeking is relatively trivial, especially once you include the many midsized and small firms that are investing heavily. This article misses the point. People hate pharmaceuticals because of ridiculously high drug costs, and that's about it. If they can't produce drugs at profit without gouging potential end users then it should be nationalize…

Why do you think that'll make drugs significantly cheaper? Drug companies are only about as profitable as other science-heavy industries.

It wouldn't if they were subsidized? I think a lot more auditing should take place. We are told drug corps spend a lot on R&D and that's factored into the price. That doesn't 'rhyme' with Gilead CEO's open letter[0] which says they base drug prices on the 'value it provides', not on the costs absorbed. My feeling is that drugs would be far cheaper if they would actually base them on the costs absorbed.

[0] https://www.gilead.com/news-and-press/press-room/press-relea...

Re: Which firms profit most from America’s health-care system (2018)

#23

Post by evanpw »

dan-robertson wrote: post #9
knubie wrote: post #5

> Every year America spends about $5,000 more per person on health care than other rich countries do. Yet its people are not any healthier. I think part of the reason Americans spend more on healthcare is precisely because they're unhealthy. According to the American CDC the obesity rate has reached a staggering 42.4% of adults[0], which brings with it a slew of health problems. This accounts for an additional $147 b…

A counter argument I see sometimes is that the reason Americans spend more on healthcare compared to other rich countries is that American consumers spend more on just about everything than most other rich countries (and also earn more money). I don’t really know how much merit the argument has.

Here's a long data analysis making that argument: https://randomcriticalanalysis.com/why-conventional-wisdom-o....

Re: Which firms profit most from America’s health-care system (2018)

#24

Post by guerrilla »

ntsplnkv2 wrote: post #6

> Everyone hates pharmaceutical firms, but their share of health-care rent-seeking is relatively trivial, especially once you include the many midsized and small firms that are investing heavily. This article misses the point. People hate pharmaceuticals because of ridiculously high drug costs, and that's about it. If they can't produce drugs at profit without gouging potential end users then it should be nationalize…

Subsidizing doesn't stop the price gouging though, it only distributes the cost and in fact may increase the incentive for price gouging since payment would be nearly guaranteed.

Why not free the intellectual property here instead?

Re: Which firms profit most from America’s health-care system (2018)

#25

Post by sushshshsh »

francisofascii wrote: post #8

Just got the bill yesterday for my "free" Covid test. $250, insurance pays $105, you owe $145. (The test was free, the office visit was not.)

Who is to blame?

The government for not collecting taxes from you and using that money to pay the doctor?

The doctor for billing too high for the visit?

The insurance company for not covering more of the price?

Personally I would seek to understand why the doctor is billing so much and how that can become more fair for everyone involved.

Re: Which firms profit most from America’s health-care system (2018)

#28

Post by sriku »

> The excess profits of the health-care firms are equivalent to $200 per American per year, compared with $69 for the telecoms and cable TV industry and $25 captured by the airline oligopoly. Only the five big tech “platform” firms, with a figure of $250, are more brazen gougers.

wow!

Re: Which firms profit most from America’s health-care system (2018)

#29

Post by enaaem »

ntsplnkv2 wrote: post #6

> Everyone hates pharmaceutical firms, but their share of health-care rent-seeking is relatively trivial, especially once you include the many midsized and small firms that are investing heavily. This article misses the point. People hate pharmaceuticals because of ridiculously high drug costs, and that's about it. If they can't produce drugs at profit without gouging potential end users then it should be nationalize…

Developing new drugs takes over a decade and costs billions. European countries are free loading of US drug research.

https://www.wsj.com/amp/articles/how-other-countries-freeloa...

Re: Which firms profit most from America’s health-care system (2018)

#30

Post by vertbhrtn »

bluedino wrote: post #12
knubie wrote: post #5

> Every year America spends about $5,000 more per person on health care than other rich countries do. Yet its people are not any healthier. I think part of the reason Americans spend more on healthcare is precisely because they're unhealthy. According to the American CDC the obesity rate has reached a staggering 42.4% of adults[0], which brings with it a slew of health problems. This accounts for an additional $147 b…

If we fixed our diet problems, I’m not sure if we’d either have e or healthcare costs, or if the industry would find other ways to fill in the gap

I'd argue it's unfixable for low income workers. Excessive sugar in all the cheap food is a trap they can't avoid. They don't have money to buy better food and don't have time to shop and cook for themselves. That's assuming they recognize this problem at all.
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