U.S. Health Care System Wasting Billions, and Other Health Care News

by Seth Michaels, Oct 26, 2009

A new report today from Thomson Reuters shows how badly the nation’s health care system is failing working families. The report estimates that more than $500 billion, and maybe as much as $800 billion, is being wasted every year. Health costs in the United States are so high because standard practices are so wasteful. If we can recover savings from that waste, it would far exceed the cost of health care legislation being considered in Congress—legislation that can provide more people with affordable, quality coverage. 

Some “highlights” from this unsettling report: 

• The average hospital is spending a quarter of its budget on billing and paperwork.
• Tens of billions of dollars a year are wasted because of outdated, paper-based records systems that discourage information sharing.
• Conditions like uncontrolled diabetes that should be avoided through smart preventative care cost tens of billions a year.
• Medical mistakes and unnecessary care cost hundreds of billions a year. 

We need health care reform that addresses these critical issues and gives everyone access to high-quality care. And we can afford it, by fixing the factors that are driving up costs.

Here’s more news from the battle for health care: 

• Senate Majority Leader Harry Reid (D-Nev.) is fighting hard to include a public health insurance option in the Senate’s health care bill. Reports indicate Reid could announce a combined bill as soon as today. The important question is whether there are 60 votes to break a filibuster and allow a vote on the bill—so call your senator!
• Senators also must be sure to include strong employer responsibility in a heath care bill, which also could be at risk.
• The Commonwealth Fund has a comprehensive look at which bills have passed committees in the House and Senate and the differences among them.
• An affordable public health insurance option would benefit families and help small business owners, who are being hurt by health coverage costs.
• Alliance for Retired Americans members continue to hold rallies, make conference calls and organize other events in support of health care reform.
• And we can’t resist this: At last week’s meeting of America’s Health Insurance Plans (AHIP), the comedy protest group “Billionaires for Wealthcare” interrupted by breaking into song about the public option. Watch a delighted Rachel Maddow explain here how a catchy tune beat the insurance companies.

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