Did you know that 66.5 percent of all personal bankruptcies in America are caused by medical bills?
Additionally, at least 72 percent of those people had health insurance, according to a study done by Harvard University. Patrick Bet-David discusses why American healthcare is so expensive — unveiling the corruption behind excessive costs and charges.
Everybody knows medical bills are expensive to a frightening degree. According to a study done by National Nurses United, 78 percent of adults have avoided hospital visits and 44 percent skipped medical care due to the cost.
As of 2018, the average Cost to Charge Ratio in U.S. hospitals was over 400 percent. Meaning, for every $100 dollars it costs a hospital to perform a procedure, they charge the patient $400. At the 100 most expensive U.S. hospitals, the cost to charge ratio can be as high as 1800 percent.
One of the leading problems facilitating the high costs is a lack of price transparency — hospitals do not disclose the price of their services, leaving patients unable to compare prices between hospitals. In an attempt to combat this problem, in September 2020, former President Donald Trump signed an executive order aimed at ensuring hospital price transparency and limiting surprise billing. The bill required hospitals to make prices available publicly.
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Unfortunately, one year later, research published by the nonprofit group Patient Rights Advocate determined that 471 of 500 hospitals examined were not in compliance with the new rule. In 2021, the Biden administration threatened to fine hospitals that did not comply. Despite the threats, in May 2023, Ways and Means Committee Chairman Jason Smith cited that fewer than one in four hospitals are estimated to be in compliance with the price transparency rules and only four hospitals out of 6,000 nationwide have ever been fined for noncompliance.
Why is the government being so passive in regard to letting the hospitals blatantly defy the law? Perhaps it’s because government programs such as Medicare and Medicaid encourage the problem.
Hospitals in the U.S. generate more revenue than any other industry in America ($1.4 Trillion). However, they operate at negative profit margins … How is that possible? Medicare and Medicaid programs typically underpay hospitals by over $100 billion dollars annually. The hospitals offset those losses by passing it to privately insured patients.
To get a more in-depth breakdown, make sure to watch PBD’s video about this issue!
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