Health care is an industry just like any other. Doctors, hospitals, pharmaceutical drug makers, medical device manufacturers, and all the associated software and equipment companies are in business to make money. You are the consumer. When you need a plumber or some house repairs you probably do some research, shop around for a good price, and maybe see if there is part of the job you can do yourself. If you’re particularly discerning, you’ll get a second opinion on what the problem is and how it could best be addressed. Shouldn’t we be doing that with our health?
Profits Come 1st
Health care spending in the United States was $4.5 trillion in 2022, which equates to more than $13,493 per person, according to the Centers for Medicare and Medicaid Services. Nearly 30 percent of this spending comes from private health insurers, and 11 percent ($471 billion) is out-of-pocket costs paid by you, the consumer. While we can be lulled into thinking that our doctors and the products they recommend are altruistic in nature—focused on making us well—health care is one of the most profitable industries in the world.
Emma Tekstra
Author
Emma Tekstra is a Fellow of the Institute of Actuaries, an independent health researcher, and author of “How to Be a Healthy Human.” With a 30-year background in employee benefits and corporate health and well-being, she consults with employers looking for real solutions to runaway health care costs, and to startup companies bringing health solutions to market. Learn more at EmmaTekstra.com.
