Admission: You're Getting Hosed
The Market Ticker - Commentary on The Capital Markets
Logging in or registering will improve your experience here
Main Navigation
Full-Text Search & Archives

Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.

The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Considering sending spam? Read this first.

2019-11-21 09:10 by Karl Denninger
in Corruption , 109 references Ignore this thread
Admission: You're Getting Hosed
[Comments enabled]

Choose peaceful revolt now or something really ugly not long from now is likely to become inevitable.

Robert Pollin of UMass' Political Economy Research Institute told Kaiser Health News earlier this year that most of the roughly 2 million estimated job losses would hit administrative positions -- about half among insurers and half in hospitals and doctors' offices.

...

"Although do recognize on this what we're talking about, and that is in effect, how much of our health care dollars have not gone to health care?" she (Warren) added.

2,000,000 people
X$50,000 (salary and maybe benefits per-job)
=======

$ 100,000,000,000 per year.

That's one hundred billion dollars a year you are getting screwed out of and by the way, that's just salaries; we haven't done a thing about monopolist pricing, which Warren's proposal will not address.  (With no competition there will be no halt to monopolist pricing.)

Incidentally that figure is ridiculously low; the health industry has added roughly 400,000 person per year for the last 10 years to the employment rolls (that's 4 million people) and of them 90%, approximately, never provide a single second of care to a single person.  They are all administrators.  Nor did this start after the crash; it was going on for a couple of decades beforehand.

So 2 million people is a fancifully low estimate short of more bribery in the health care sector aimed at Congressthe real number should all that overhead go away is more than double that and the cost per is likely low too as most of these are middle-class jobs and thus it's farcical that their total per-employee cost on a fully-counted basis, including their health care and other benefits, is that low.

In other words it's probably closer to a quarter of a trillion dollars a year you're getting raped out of by this aspect of the current system alone.

There's one answer to this and it's something that is functionally what I've proposed.  But neither side of the political aisle will do it, given the amount of money thrown around by insurance companies, pharma and other medical lobbyists and firms, never mind the stock market implications, unless the politicians have literally no choice, and that means the entire nation must decide that this is not an option, it's a demand with an "or else" that is worse than some political person losing their job.

View with responses (opens new window)