Health care Profiteering and Suffering Patients
According to the article “The Sick Business of Health-Care Profiteering” published in Vanity Fair , the CEOs of the health care companies receive median annual copmpensation of more than $12.4 million, or almost 2/3rd more than their counterpart CEOs in any other industry. The total annual profits of the healthcare industry has grown to an estimated $200 billion and this industry spends more than any other industry lobbying the government. However, the outcome of this hige expenditure remains miserable with WHO ranking the U.S healthcare 37th in overall quality and fairness and 41st in infant mortality rates. This is starkly in contrast to the fact that the U.S spends 17 percent of its GDP on healthcare amd more than $7500 per person per year which is 50 percent more than any other industrialized nation. In other other words, this is a huge rip off.
Health insurance companies are raking in profits while the patient care has been falling down. Over the last eight years they have tripled their profit, yet they complain of lacklustre profits they have no right to when their CEOs and executives are paid so extravagently.
In the past decade, the health-insurance premiums have more than doubled, yet according to a study, six biggest insurers denied an average of 21 percent of all claims in California in the first half of 2009. PacificCare had the astonishing 39.6 percent decline rate. Hospital Corporation of America saw a 23 percent revenue jump to $28 billion in 2008 with a neat profit of $673 million. The company did better in 2009, while the same company in 2002 paid $1.7 billion in fines against Medicare and Medicaid fraud..
The Pharmaceutical industry’s GDP share has more than tripled since 1980 with more than $300 billion in annual revenue and $50 billion in profit. The top level CEOs in this segment like Howard Solomon, Miles White, Richard Clarke have received anywhere between $17 million to $33 million a year.
Therefore, the healthcare reforms make sense to the average American. An average American has noticed his hard earned money drain down the healthcare system with no commensurate outcome. The greed and the lust for profit among the big healthcare companies has gone on to only worsen over time at the expense of an average American that suffers.