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Culture War Roundup for the week of December 2, 2024

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Culture war going hot: https://www.cnn.com/2024/12/04/us/brian-thompson-united-healthcare-death/index.html

A gunman has killed the CEO of United Healthcare this morning, and has disappeared into the city. I’m somewhat surprised this isn’t more common, especially given the nature of healthcare company’s profit motives. I could imagine “we denied your wife’s medical claim and are sorry for her death. Also your bill is past due and we are sending you to collections. Thank you understanding.” might be a story that exists in a lot of people.

Expect to see more private security, more private flights, more underground parking and armored cars and so forth for a while.

This was clearly an assassination.

Your anger at health insurance companies is misplaced. If the profit motive is the problem, a public option is a solution, but American voters (especially right-leaning ones) have been pretty emphatic about refusing it.

Companies have to deny some claims or else premiums would have to rise for everyone. UHC's profit margins are actually far lower than e.g. Apple's.

Your anger at health insurance companies is misplaced.

The insurance companies, the AMA, and the feds are locked together in a perverse cycle that produces a system that somehow spends even more on healthcare than socialized medicine countries...but the lion's share of the extra money goes to doctor's salaries (artificial scarcity driven by the AMA, med schools, and residency limitations) and ever-increasing administrative costs (additional regulations and insurance bureaucracy).

but the lion's share of the extra money goes to doctor's salaries

Doctor's salaries are not a significant percentage of healthcare spending. What percent of spending would be required for you to consider "lion's share" to be an accurate description?

I said the lion's share goes to higher salaries and higher admin costs. The abstract of the study I linked in my comment:

The United States far outspends Canada on health care, but the sources of additional spending are unclear. We evaluated the importance of incomes, administration, and medical interventions in this difference. Pooling various sources, we calculated medical personnel incomes, administrative expenses, and procedure volume and intensity for the United States and Canada. We found that Canada spent $1,589 per capita less on physicians and hospitals in 2002. Administration accounted for the largest share of this difference (39%), followed by incomes (31%), and more intensive provision of medical services (14%). Whether this additional spending is wasteful or warranted is unknown.

31% + 39% = 70% - over two thirds of the U.S.'s increased per capita physician and hospital spend over Canada's is down to those two things. That's "the lion's share" by any measure.

Current physician salaries are 8.6% of healthcare costs per Stanford. Looking closer at your data, it seems to be very old - it's missing 15+ years of physician salary pay cuts (which have been going on yearly for decades) and 15+ years of increased administrative bloat and other factors (such as increased excess services).

If you cut physician salaries in half across the board (which simply isn't possible, if you did that some specialties would be making less than nurses, and specialties like OB with an immense malpractice burden would be financially impossible), then you would barely make a dent in total expenditures and introduce significant new problems - who is going to work weekends and holidays and nights after such a massive pay cut?

Increased administrative costs are unnecessary, expensive, and much easier to reduce.