In the past four days there has been a number of articles posted relating to the cost of healthcare. Most notably are the Washington Post article on the regionalism of healthcare spending and the New York Times article on the slowing inflation of healthcare costs. These articles seem to be foils of each other – one emphasizing the exorbitant costs and the other the pseudo-stability of prices.
In sum:
The Washington Post cited Tuesday’s issue of the journal, Health Affairs in saying that the health maintenance costs in the United States, particularly in the Northeast, is a costly business. They noted that annual healthcare spending per person in the Northeast totaled $6,151 per person - with the highest being the District of Columbia ($8,295) and Massachusetts ($6,683). This is compared to the national average of $5,283 per person and the lowest, Utah, which came in with healthcare spending totaling only $3,972.
On the other hand, while the Washington Post reported this seemingly atrocious state of affairs in the Northeast, the New York Times was reporting that there is hope.
Stephanie Saul wrote that, “As overall health care costs continue to rise sharply, prescription drugs have emerged as a surprising exception.” The inflation of drug costs is at the lowest rate it has been at in the past three decades.
Economists are pointing to the increase of valid generic versions on the market to explain the leveling of inflation. Others point to the so-called “Wal-Mart $4 effect” as more companies are turning towards programs that supply generic drugs for minimal costs.
This however, does not mean that the market is at all stable – there has still been an 8.3 percent increase in prices since 2006 according to IMS Health. Furthermore, this increase is unlikely to end soon due to the strain that the aging baby-boomer population presents on the market.
My opinion:
Despite the decrease in pharmaceutical inflation the healthcare industry remains stable. Stable meaning that it is highly profitable and unattainable for a vast majority of the population. Looking at the cost of healthcare and even generic prescription costs, the per capita spending is still much above the financial abilities of many Americans - a fact that both articles seemed to neglect.
To be honest, that people in the Northeast pay the most does not disturb me – perhaps I have simply gotten adjusted to paying for medical care in Washington, D.C. I just don’t think that it should be surprising that the Northeast, the area with the highest personal income, the highest concentration of physicians and the lowest rates of uninsured, should pay the most for their healthcare per year. What would have disturbed me is if the Southwest and Rocky Mountain regions had the highest prices – these areas being more rural and often with lower income brackets.
Even more disturbing, according to the 2006 United States Census, the bottom 20 percent of this country’s households makes less than $23,202 (remember this is per household not per person). Using the national average of healthcare spending ($5,283) and the 2006 Census average household size (2.57 people per household), households in this segment of society spend $13,577.31, or 58.5 percent of their income, on healthcare spending.
Furthermore, 12.7 percent of U.S. households fall below the federal poverty threshold. Even more concerning this that, according to the Economic Policy Institute, 21.9 percent of United State children fall under this poverty threshold – the highest child poverty rate in the developing world.
So who is it, again, that can’t afford healthcare?
-Erika Eckstrom, Issues of Health
Labels: Erika, Health, Healthcare