"...patients have an incentive to utilize everything modern medicine offers until the value to them is only 12 cents out of the last dollar spent. "
It wasn't all that long ago that our family went to the local medical clinic and on the way out, I'd write a check to cover the cost of the visit. We had health insurance but it was for hospitalization and the deductible was significant. Doctor visits were affordable.
Things have changed a lot in the last 10 years or so. According to this article, it's because third parties (employers, insurance companies, Uncle Sam) pay most of the bills.
"Most people pay for only a small portion of their medical care:
Things have changed a lot in the last 10 years or so. According to this article, it's because third parties (employers, insurance companies, Uncle Sam) pay most of the bills.
"Most people pay for only a small portion of their medical care:
- For every $1 worth of hospital care consumed, the patient pays only about three cents out of pocket, on the average; 97 cents is paid by a third party.
- For every $1 worth of physician services consumed, the patient pays less than 10 cents out of pocket, on the average.
- For the health care system as a whole, every time patients consume $1 in services, they pay only 12 cents out of pocket."