Why an MRI costs $1,080 in America and $280 in France

[marmar]

from the WaPo:




There is a simple reason health care in the United States costs more than it does anywhere else: The prices are higher.

That may sound obvious. But it is, in fact, key to understanding one of the most pressing problems facing our economy. In 2009, Americans spent $7,960 per person on health care. Our neighbors in Canada spent $4,808. The Germans spent $4,218. The French, $3,978. If we had the per-person costs of any of those countries, America’s deficits would vanish. Workers would have much more money in their pockets. Our economy would grow more quickly, as our exports would be more competitive.

There are many possible explanations for why Americans pay so much more. It could be that we’re sicker. Or that we go to the doctor more frequently. But health researchers have largely discarded these theories. As Gerard Anderson, Uwe Reinhardt, Peter Hussey and Varduhi Petrosyan put it in the title of their influential 2003 study on international health-care costs, “it’s the prices, stupid.”

As it’s difficult to get good data on prices, that paper blamed prices largely by eliminating the other possible culprits. They authors considered, for instance, the idea that Americans were simply using more health-care services, but on close inspection, found that Americans don’t see the doctor more often or stay longer in the hospital than residents of other countries. Quite the opposite, actually. We spend less time in the hospital than Germans and see the doctor less often than the Canadians. .............(more)

The complete piece is at: http://www.washingtonpost.com/blogs/ezra-klein/post/why-an-mri-costs-1080-in-america-and-280-in-france/2011/08/25/gIQAVHztoR_blog.html

[shcrane71]

1. Japan has set prices for services. It seems reasonable to me, but won't

economist say that price controls are bad? What I don't understand is since healthcare demand is inelastic, don't we need price controls?

[abelenkpe]

2. We need single payer

because insurance companies openly engage in price gouging hurting those least able to pay.

From article:

"Providers largely charge what they can get away with, often offering different prices to different insurers, and an even higher price to the uninsured."

[kestrel91316]

3. MRI's cost $2000+ in Los Angeles, my sources tell me. And that's if you have insurance.

I assume uninsured get quoted a far higher price. Apparently the MRI providers want us to believe that they take a bath financially when insurers only pay them a paltry $2k, so they have to make up for it by vastly overcharging the uninsured.

[Vincardog]

4. Actually they overcharge the uninsured so they have a larger bill to WRITE OFF when

they force people into bankruptcy. The better to hide their obscene profits.

[kestrel91316]

5. Excellent observation.

[ProgressiveProfessor]

6. Multiple prior posts from the same source

http://www.democraticunderground.com/1002386835

http://www.democraticunderground.com/1002380141