What’s Driving Health Care Costs?

1. What’s Driving Health Care Costs? Universal, Affordable Care for Massachusetts http://masscare.org

2. U.S. Spends Almost Double Next Highest Spending Country

3. Common Explanations forHigh Health Care Costs • Inadequate Prevention • Behavioral factors • High obesity rate • High smoking rate • High levels of drinking • Racial and Ethnic Makeup of the U.S. • Aging population • End of life care • Chronic Illnesses • High cancer rates • High diabetes rates • High heart disease rates • Overuse of technology (e.g. MRIs, CT scans, etc) • Use more prescription drugs • Fee-for-service: overuse of tests and procedures • Lower cost transparency • More third party insurance payers • More physician visits • More ER and hospitals visits • More Medical Malpractice lawsuits • Worse electronic health records • Higher Cost of drugs • Higher cost of medical devices • Too much hospital bargaining power • More profits • More administration/paperwork • Higher physician/nurse pay

4. Common Explanations forHigh Health Care Costs • Inadequate Prevention • Behavioral factors • High obesity rate • High smoking rate • High levels of drinking • Racial and Ethnic Makeup of the U.S. • Aging population • End of life care • Chronic Illnesses • High cancer rates • High diabetes rates • High heart disease rates • Overuse of technology (e.g. MRIs, CT scans, etc) • Use more prescription drugs • Fee-for-service: overuse of tests and procedures • Lower cost transparency • More third party insurance payers • More physician visits • More ER and hospitals visits • More Medical Malpractice lawsuits • Worse electronic health records • Higher Cost of drugs • Higher cost of medical devices • Too much hospital bargaining power • More profits • More administration/paperwork • Higher physician/nurse pay

5. Common Explanations forHigh Health Care Costs • Inadequate Prevention • Behavioral factors • High obesity rate • High smoking rate • High levels of drinking • Racial and Ethnic Makeup of the U.S. • Aging population • End of life care • Chronic Illnesses • High cancer rates • High diabetes rates • High heart disease rates • Overuse of technology (e.g. MRIs, CT scans, etc) • Use more prescription drugs • Fee-for-service: overuse of tests and procedures • Lower cost transparency • More third party insurance payers • More physician visits • More ER and hospitals visits • More Medical Malpractice lawsuits • Worse electronic health records • Higher Cost of drugs • Higher cost of medical devices • Too much hospital bargaining power • More profits • More administration/paperwork • Higher physician/nurse pay

6. Common Explanations forHigh Health Care Costs • Inadequate Prevention • Behavioral factors • High obesity rate • High smoking rate • High levels of drinking • Racial and Ethnic Makeup of the U.S. • Aging population • End of life care • Chronic Illnesses • High cancer rates • High diabetes rates • High heart disease rates • Overuse of technology (e.g. MRIs, CT scans, etc) • Use more prescription drugs • Fee-for-service: overuse of tests and procedures • Lower cost transparency • More third party insurance payers • More physician visits • More ER and hospitals visits • More Medical Malpractice lawsuits • Worse electronic health records • Higher cost of drugs • Higher cost of medical devices • Too much hospital bargaining power • More profits • More administration/paperwork • Higher physician/nurse pay

7. Disease Prevalence:U.S. vs. Peer Countries

8. Disease Prevalence:U.S. vs. Peer Countries Disease prevalence = $57 to $70 billion savings

13. Nations With UniversalHealth Care Coverage

14. How Universal Health Care Is Paid For You Government Fund Health Care Providers Fixed Payroll Tax Negotiated Budget

15. How U.S. Health CareIs Paid For Medicaid Taxes Medicare Separate contracts Blue Cross Tufts Medical Insurance Premiums You Out-of-Pocket Costs Health Care Providers

16. Insurance Administration Costs OECD Data, 2010

17. Hospital Administration Costs OECD, 2010

18. Aortic Aneurysm Repair Costs Brox. et. al. Arch Internal Medicine, 2003

19. U.S. Pays Higher Prices forthe Same Drugs mt.gov.com, 2010