Friday, March 24, 2017

Will President Trump Reign In the Medical Industrial Complex?

Entitlement
Explosion
Image result for total health care costs to gdp chart pictures

Most of Budget Goes Toward Defense, Social Security, and Major Health Programs
DYI:  The underlining cost of health care is completely different from health insurance.  Health insurance premiums are only a reflection of the underling cost.  The medical industrial complex is moving up on average at a blistering pace of 9% per year which is the true reason for the premium explosion for health insurance.  This industry regularly colludes with competitors in order to price fix and has created monopolies in many local areas.  All of these business behaviors are outlawed over 100 years ago by the Robinson-Patman, Clayton and the granddaddy Sherman Anti-Trust acts.  President Trump only needs to do is enforce these laws which will drive down the underling health care by 75%.  That is not a typo.  However he will need to go to Congress to repeal the law criminalizing the reimportation of pharmaceutical drugs.  This repeal will drop drug prices by 50% for new drugs to 90% for many generics.  So far I’ve seen zero effort.  Fixing health insurance will do nothing to reign in the marauding Medical Industrial Complex’s runaway costs.

At the current rate of growth within five years the health care industry will stifle the economy at 30% of GDP.  I don’t see how Trump will be reelected under those conditions.

DYI

No comments:

Post a Comment