Health Care Costs

Updated: Saturday, August 3 2013, 12:38 AM EDT
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KALAMAZOO, Mich. (NEWSCHANNEL 3) - It's not often that people in the news business find themselves extolling the work of some other journalist.

In this week's Tom's Corner, however, Tom Van Howe is doing exactly that.

Tonight, Tom is talking about the 38-page Time magazine article on the high cost of health care that we ignore at our peril.

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There are lots of things in the world today that make me a little angry.

But every once in a while something fills me with a sense of rage.

And reading this giant, 7-months-in-the-making, dissection of our health system by Steven Brill, is one of them. 38 pages documenting the "outrageous pricing and egregious profits that are destroying our health care.

In painstaking detail, it spells our how hospitals and their CEO's have made a mockery of their 'non-profit' designations by reaping enormous sums of money off the backs of sickness, death and misery.

I'm the first to admit that the whys and wherefores of the high cost of staying healthy in this country have eluded me. For years its had been annually outstripping inflation by double digits. And when anyone has the temerity to ask why, we get this "well, for the best health care in the world. That's just the way it is.

Well, look: we spend more on health care in this country than the next 10 biggest-spending countries—combined.

We spent nearly three trillion last year, on an industry that spent nearly two billion dollars last year alone on lobbying our congress. For the record—that's more than all defense contractors combined.

And what do we get for our money?  In terms of life expectancy, we rank behind—among others—Denmark, Australia, Spain, Japan, and the UK.

Infant morality?  We rank 50th... 50th! Nine spots below Cuba.

Ours is a system in which virtually everyone who uses it—and actually sees a bill for services rendered—goes into sticker shock.

Hospitals charges ungodly amounts for absolutely everything, including tens of dollars for a laundry list of things you'd buy for pennies at the drug store.

It's a world in which the CEO of your local hospital, along with his or her assistants, is likely to be among the highest paid people in town.

A world in which 62 percent of all the bankruptcies in this country are related to illness or medical bills.

There are lots of discussions in Washington, Lansing, family tables, and coffee shops about how to pay for all this.

But rarely does anyone make the case that it simply costs too much, and what to do about it.

Our system needs to be changed.  Steven Brill's article in the March 4th issue of Time magazine opens the door. Its the perfect peg on which to start.

In this corner... I'm Tom Van Howe.
Health Care Costs
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Last Update on April 17, 2014 17:08 GMT

UNEMPLOYMENT BENEFITS

WASHINGTON (AP) -- The number of people applying for U.S. unemployment benefits last week rose 2,000 to a seasonally adjusted 304,000. Jobless claims continue to be near pre-recession levels despite the slight increase.

The Labor Department says that the four-week average of applications, a less volatile measure, fell 4,750 to 312,000. That is the lowest four-week average since October 2007, just two months before the Great Recession started. The average has fallen by 53,500 applications over the past 12 months.

Applications are a proxy for layoffs. The current level of claims suggests that employers are holding on their workers with the expectation of stronger economic growth ahead.

Employers added 192,000 jobs in March and 197,000 in February, the Labor Department reported. Hiring has picked up after a slowdown caused by severe winter weather.

MORTGAGE RATES

WASHINGTON (AP) -- Average U.S. rates on fixed mortgages fell this week for the second straight week as the spring home-buying season begins.

Mortgage buyer Freddie Mac says the average rate for the 30-year loan fell to 4.27 percent from 4.34 percent last week. The average for the 15-year mortgage eased to 3.33 percent from 3.38 percent.

Mortgage rates have risen about a full percentage point since hitting record lows about a year ago.

Many analysts have been expecting an improving economy to lift the housing market, which has been recovering over the past two years. But housing has struggled to maintain momentum. Rising home prices and higher mortgage rates have held back some potential home buyers. Others have had trouble qualifying for mortgages.

EARNS-GOLDMAN SACHS

NEW YORK (AP) -- Investment bank Goldman Sachs says its first-quarter earnings fell as fixed income trading slumped.

The bank earned $1.9 billion in the quarter, down 11 percent from the same period a year earlier when it made $2.2 billion.

The earnings were equivalent to $4.02 a share. Analysts polled by FactSet had predicted earnings of $3.49 a share.

Revenue totaled $9.3 billion, down 8 percent from a year earlier, when the bank generated revenue of $10.1 billion. The latest quarterly revenue beat analysts' expectations of $8.7 billion.

Goldman's stock rose $2.78, or 1.8 percent, to $160 in pre-market trading.

EARNS-PEPSICO

NEW YORK (AP) -- PepsiCo reports a stronger-than-expected first-quarter profit as the company slashed costs and sold more snacks around the world.

The company, which makes Frito-Lay, Gatorade, Mountain Dew and Tropicana, says global snack volume rose 2 percent while beverages were even from a year ago.

In its closely watched North American beverage unit, PepsiCo Inc. says volume was even. Growth in other drinks offset a 1 percent decline in sodas.

For the quarter, the company earned $1.22 billion, or 79 cents per share. Not including one-time items, it earned 83 cents per share, above the 75 cents per share Wall Street expected.

A year ago, it earned $1.08 billion, or 69 cents per share.

Revenue edged up to $12.62 billion, higher than the $12.39 billion analysts expected.

EARNS-MATTEL

EL SEGUNDO, Calif. (AP) -- Toy maker Mattel says weak sales of Barbie and markdowns to clear out excess inventory left over from a sluggish holiday season led to an unexpected first-quarter loss.

Toy makers are facing a weak environment globally due to the uncertain economy and popularity of electronic gadgets.

The largest U.S. toy maker says its net loss for the three months ended March 31 totaled $11.2 million, or 3 cents per share. That compares with net income of $38.5 million, or 11 cents per share last year. Analysts expected earnings of 7 cents per share.

The company which makes Disney Princess dolls and Hot Wheels cars says revenue fell 5 percent to $946.2 million. Analysts expected $947.6 million. Barbie revenue dropped 14 percent.

TARGET-SUBSCRIPTION SERVICE

NEW YORK (AP) -- Target is vastly expanding the goods that are available to order by subscription as it fends off its biggest non-traditional retail rival, Amazon.com.

The nation's second-largest discounter first dabbled with subscriptions last September, trying to win over haggard parents with 150 baby care products.

That program has been expanded more than tenfold this week to nearly 1,600 items across a much wider array of consumer goods. Everything from beauty products and pet supplies, to home office supplies like printer ink, are now available through subscription.

Target, based in Minneapolis, is playing catch up in the subscription arena, which has exploded as companies test consumer appetites for almost every niche, from socks to razors, to clothing and entertainment.

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