The Graph Says It All…

physicians_v_administrators

Who has caused the explosion in health care costs since 1970? Physicians or runaway bureaucracy? This graph doesn’t leave much to the imagination. Hat tip Isaac Morehouse by way of Instapundit.

— JAB

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12 responses to “The Graph Says It All…

  1. what happened in the 1990’s?

  2. Ok you got me there

  3. Does this look like the graph of higher ed?

    • This Graph says it all about so many things, most particularly us. And most everything that we touch.

    • “… the U.S. economy is simply overrun by an out of control and increasingly politicized regulatory state. If it takes years to get the permits to start projects and mountains of paper to hire people, if every step risks a new criminal investigation, people don’t invest, hire or innovate.”

      See “Ending America’s Slow-Growth Tailspin” in today’s WSJ opinion section.

    • Why, yes, Salz, it certainly does.

  4. ” Ten Ways HMOs Have Changed During The 1990s
    HMOs and managed care organizations did not merely grow
    during the 1990s—they changed substantially too.”

    http://content.healthaffairs.org/content/16/3/134.full.pdf

  5. ” Medical Loss Ratio
    Many insurance companies spend a substantial portion of consumers’ premium dollars on administrative costs and profits, including executive salaries, overhead, and marketing.

    The Affordable Care Act requires health insurance issuers to submit data on the proportion of premium revenues spent on clinical services and quality improvement, also known as the Medical Loss Ratio (MLR). It also requires them to issue rebates to enrollees if this percentage does not meet minimum standards. The Affordable Care Act requires insurance companies to spend at least 80% or 85% of premium dollars on medical care, with the rate review provisions imposing tighter limits on health insurance rate increases. If an issuer fails to meet the applicable MLR standard in any given year, as of 2012, the issuer is required to provide a rebate to its customers.”

    https://www.cms.gov/CCIIO/Programs-and-Initiatives/Health-Insurance-Market-Reforms/Medical-Loss-Ratio.html

  6. can’t have it both ways Crazy. if you wanna complain about administrative costs then don’t complain about ways to reduce it.

    it looks like the problem was with the private sector – cuz Medicare has LOW administrative costs – in part because it has one system for 60 million people!

    In fact, people complain that Medicare pays less than the private sector pays for procedures and then of course you have the death panel thing also, eh?

    then of course you can look at all the other industrialized countries who all have lower administrative costs… cuz those folks pay about 1/2 what we do for health care – and all of them are govt-run health care to boot!

  7. It would be useful to see the data in raw numbers. How many administrators? How many doctors? I also wonder about the growth rate in, and numbers of, non-doctor clinicians, e.g., nurses, nurse practitioners, physician assistants, technicians and the like. I think we need more information before we can draw too many conclusions.

  8. not only numbers – but salaries….

    “… The Affordable Care Act requires insurance companies to spend at least 80% or 85% of premium dollars on medical care,”

    that leaves 15% for administrators ….. which according to the charts far outnumber the number of doctors.

    so yes – I agree you TMT – if you’d add to that chart – these others – that are also providing medical care – that chart might look different.

    but then if you did that -you’d totally screw up the propaganda value of the chart…

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