Here are a few numbers regarding Medicare and the totality of health care costs. We use 2008 as a base year and round up all costs to $2.5 trillion.
Metric (2008)
Total Pop (000) ......304,000
Medicare PoP (000) ......45,221
Total Costs $000,000.000 ...... $2,500
Medicare Costs $000,000,000 ...... $454
Percent Medicare PoP ......14.9%
Percent Medicare Costs ......18.2%
$ per Medicare ......$10,046
$ per Others ...... $7,905
Lifetime Non Medicare ...... $513,838
Lifetime Medicare ......$120,555
Now some observations:
1. The Medicare patient costs on average $10,046 per year and since they live on average at most 12 years their total burden with 2008 care levels is $120,555.
2. In contrast the non medicare patient costs $7,905 per year and has a total burden till Medicare kicks in of $513, 838. This is five times the Medicare burden.
3. 15% of the population are on Medicare and 18% of the health care costs go to Medicare. Considering that Medicare patients are much older, by definition, this is not an unreasonable spread.
4. 40 million of the people who should have insurance do not, so as a back of the envelope calculation they cost about $320 billion per year, whereas Medicare costs $454 billion. However the Medicare patient has for the most part contributed to Medicare but the uninsured has made no contribution. In fact it is reasonable to assume that this pool of uninsured, due to desire or inability, may very well be more costly than Medicare. They are the ones with morbid obesity and they are the ones driving up the health care costs per GDP and they are the one hanging around in a chronic state of health. If choices should and must be made let us look there as well if not first perhaps. We truly need the wisdom of a Jonathan Swift to make things clear.
On the basic principle of fairness and equity, the person who contributed should receive before the person who has not. It is not at all clear if Congress and the Press have the slightest insight into the facts.
1. The Medicare patient costs on average $10,046 per year and since they live on average at most 12 years their total burden with 2008 care levels is $120,555.
2. In contrast the non medicare patient costs $7,905 per year and has a total burden till Medicare kicks in of $513, 838. This is five times the Medicare burden.
3. 15% of the population are on Medicare and 18% of the health care costs go to Medicare. Considering that Medicare patients are much older, by definition, this is not an unreasonable spread.
4. 40 million of the people who should have insurance do not, so as a back of the envelope calculation they cost about $320 billion per year, whereas Medicare costs $454 billion. However the Medicare patient has for the most part contributed to Medicare but the uninsured has made no contribution. In fact it is reasonable to assume that this pool of uninsured, due to desire or inability, may very well be more costly than Medicare. They are the ones with morbid obesity and they are the ones driving up the health care costs per GDP and they are the one hanging around in a chronic state of health. If choices should and must be made let us look there as well if not first perhaps. We truly need the wisdom of a Jonathan Swift to make things clear.
On the basic principle of fairness and equity, the person who contributed should receive before the person who has not. It is not at all clear if Congress and the Press have the slightest insight into the facts.
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