Aesop Responds To Denninger’s Recent Post On Med Costs

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15 responses to “Aesop Responds To Denninger’s Recent Post On Med Costs

  1. “This is also why coding is a medical thing, because if I, the doctor, can find a way to charge for every single thing in a Manhattan-phone book sized list of options…”

    same in the residential- commercial insurance restoration biz. I would routinely charge $1000s of dollars to just re-plaster a ceiling damaged from a water leak and then paint it. in reality, it would only cost ME a couple of hundred bucks to perform and the rest was ‘made-up’ to fleece the insurance companies from their ill-gotten gains. i lived pretty damn good grossing $10k a week… ah, the good ol days. 🙂

    • Johnny Paratrooper

      Correct.
      It’s a scam.

      Even Auto Insurance.

      In North Carolina I paid $75 a month of insurance.

      In Maryland I pay $170 a month just because the minorities are thieves and destroyers.

      Same cars. Same Driver. Difference scenery.

      And of course, who donates mountains of money to the democrats? Insurance companies, because they can make twice as much money, and only spend 10% more.

  2. To be fair, I was responding more to the Deninger quote excerpted on Silicon Graybeard’s site, which was full of more error in one paragraph than I could sit still for.

    On the greater issue of Medicare etc. going financially tits up in a few years, Deninger’s economic analysis is probably dead-on balls accurate.

    And Medicare and Medicaid need to crash and burn in a smoking hole. Worse=better.

    I have no great love for Ponzi schemes, and the problem isn’t the cost, it’s the entire model of government “care.” LBJ wanted hospitals to put ten pound of shit in a five-pound bag, and then sell it for half price.

    Health care, not wanting to go broke themselves just to garner vote-tards for the Democrat Party in perpetuity, have been giving Uncle a hearty “No, fuck YOU!” ever since.

    Look up a graph of medical costs from 1900-present, adjusted for inflation, and see when they spiked up. Dollars to donuts it’ll be every time the government has intervened in the system.

    If the government wants to cover seniors and the disabled at market prices, or even actual cost plus a nominal markup, we can talk.

    Bending hospitals over like Sam Walton did manufacturers, and expecting them to deliver care for 2¢ on the dollar, or lose all senior patients forever, left TPTB no choice but to jack prices 5000% percent, to get the actual $1 they originally billed.
    And everyone not covered got the same screwing, and your insurance companies and employers went along with it, until your premiums became so high that your employers stopped offering benefits. All to preserve the myth that you could take care of Granny and Grandpa for nothing.

    TANSTAAFL

    You can pay for your own grandparents (like we used to do), or you can pay for everyone’s (like you’re doing now), including the grandparents, aunts and uncles chain-migration-dragged here from Mexico, China, Vietnam, the Philippines, and every Turd World sh*thole from Bristol to Bangkok; how’s that working out for ya?
    Or else you can go back to taking care of your own kin, and watch everyone else scramble, or die.

    But trying to pretend we could do everything for everyone, for free, is why we can’t have nice things.

    Get your own health sh*t in one bag now, and keep it there, because there isn’t going to be any safety net in ten years’ time, or less; nationally, we’re so far beyond broke now, we can’t even see Fucked in the rear view mirror with binoculars, and your kids and grandkids, let alone Wang’s and Achmed’s and Consuela’s, aren’t going to pay 40% withholding to keep you in Viagra and insulin in your dotage.

    This is why every developed country with all those socialized medical plans the progtards fap and swoon over is shit-canning them as fast as they can, and cutting delivery. It’s exactly why Britistan and Canuckistan make people wait years for hip replacements that happen here in days, and why they tell people over 70, essentially, “Tough shit Nigel, you had a good run, now go on home and die, won’t you please, there’s a good chap.”

    A free market system would be rationed by what you can afford; socialized medicine is rationed by what bureaucratic whims think is reasonable, if it fits in their budget. But unless your last name is Rockefeller, Hearst, or Getty, you aren’t getting unlimited care until you die, no matter what you thought.

    And dying, based on demographics, is a 100% certainty at some point.
    How that looks at the stinky end of the stick has more to do with how you take care of yourself until that time comes than anything else.

    • Medical costs spiked when—you guessed it—.gov intervened.

      Before Medicare, most office visits were a flat fee (the typical $7 office visit of the 50’s paid for the EKG or injections, if needed).

      It was .gov that insisted doctors itemize their bills. This itemization got doctors thinking about their overhead and—voila!—the unbundling of services accelerated price increases.

      The other drive to price increases was “1st dollar coverage.” Patients have no disincentive to seek care for every little thing, even little things like “colds” and “stomach flu,” self-limited illnesses that have no cure (yet).

      At this point the system is unfixable. It must be burned to the ground, even the medical licensing and “Board Certification” industries.

  3. DWEEZIL THE WEASEL

    “Government poisons everything it touches, like a wasp with VX venom.” True that. The whole health care thing did not really kick off until WWII. The defense industry started offering it as an incentive for workers to stay with their firms. My father had it before he was drafted, as did my uncles. When mom went to work at Lockheed, she had it. What started as an incentive has mutated into a “right” thanks to the American Communist Party, who uses it to buy votes from the dreck and the “immigrants”.

    • Not an incentive as such, it was baked into the cake by D.C.:

      In 1942 and after, Frank the Cripple had frozen wages and salaries For the Duration, so the only way businesses could attract the best workers as everyone from 18-35 was subject to the draft was to offer a better benefits package, which wasn’t subject to the taxation of the XVIth Amendment. (Until Obozo Care came along.)

      Which they did.

      Then LBJ rogered that pooch hard in 1966, by forcing hospitals and doctors to treat the elderly essentially for free (2-3%), so they raised prices 5000%, and called it even, because they were still getting $1 for every dollar’s worth of care delivered.

      Unfortunately, all the still-working stiffs, and more pointedly, their boss, was now also paying that 5000% price increase, at full freight.

      Cue the end of lifetime employment at company after company, and the death of hundreds of companies’ pension and senior retirement medical plans, and those companies, because they couldn’t pay for any of them as promised in 1942, when 40 years later Rosie and all those other Riveters had finally retired.

      And first Shrillary, and then Obozo, were right there trying to step in and put everyone on the hook for care that never should have been anything but salary, after destroying the companies and plans that competed with Uncle for providing your health care needs and wants.

      The whole system was and is nothing but a mob hit,:
      first on business, then on the health care industry, and finally, on all of us.

      This is why now, every other second they start chirping about “single-payer” which is nothing but Prog-speak for full communist healthcare, to which nobody in Congress or government is nor ever will be subject.

      The Soviet Union hasn’t been dead even 30 years, and it’s already like it never happened to these Baby Ducks, and the illiterate millions too young to have ever known otherwise.

    • Johnny Paratrooper

      Amazing.

    • SemperFi, 0321

      People just don’t want to see or understand the connection between unions and communism. Long history there.

      (Growing up in the 60’s, one of my dad’s best friends in Burbank was a German tool and die maker with Lockheed, he eventually moved to Seattle, as did we, and retired with Boeing)

      • Jimmy the Saint

        “Growing up in the 60’s, one of my dad’s best friends in Burbank was a German tool and die maker with Lockheed, he eventually moved to Seattle, as did we, and retired with Boeing”

        So he switched from the guys who built the planes that strafed him to the guys who built the planes that bombed him.

        • SemperFi, 0321

          Yup, he was radar operator in the Kriegsmarine.

          He beat a traffic ticket once when he proved in court how flawed the radar guns were. Those arrogant Germans!

  4. Pingback: And Then There Were None | Dirt People

  5. Old Gray Wolf

    Funny how understanding history makes the future, however ugly, that much more clear. The entire reason we have the mess we have is the generations of fat happy ignoramuses who never paid attention to their todays, and consequently cannot tell how they got where they are. So there is no focused anger, and thus no action…

  6. Well, the amusing part of the “rebuttal” that has been spewed all over DOZENS of websites now (identical text, so can we call it spam?) is that it’s nonsense. Why do I suspect the author is likely someone who could find themselves on the wrong end of things should the government suddenly decide the law matters once again?

    First, the claim that hospitals don’t bill people for their own errors of both execution and judgement? Horsecrap. Illegal, yes, fraud sure, but why does anyone care? They’re sure as hell not afraid of being indicted. Who went to jail for all the fraud prior to the 08 blowup in housing when it all came apart? Nobody. Who has gone to jail for the DAILY violations of 15 USC Chapter 1 which, I remind you, the medscam and insurance firms TWICE went to the USSC claiming exemptions from (under McCarren-Ferguson) and lost BOTH cases? Nobody, ever, period. Those two runs at the USSC happened in the 70s and early 80s and yet here we are nearly FORTY years later and not ONE criminal prosecution under said laws have been brought that I can find a record of. Not ONE. If you think I’m talking out my butt on this or speaking from conjecture you’re wrong — I’ve seen it first-hand in my own family and it nearly killed one of them (she subsequently managed to do herself with booze, but that’s a story for another time.) Fact is they never should have gotten the scalpel out of the cabinet in the first place given the reality of said person’s condition at the time but you can’t bill the government — or the next poor sop who comes through the door on a stretcher — a half-million bucks when things go *predictably* sideways if you say “no.”

    The math IS what it is. Medicare WAS sound from an actuarial point of view with medical care at 4% of GDP. Social Security is NOT going to collapse — unless they keep raiding the OAS fund for the “D” (disability) scammers, but even then it’s reasonably matched given the tax rate charged, the progressive nature of the benefits and the designed buffering to handle the “pig-in-python” issues with periodic baby booms (and busts.) Oh, and the actual drain on the budget in terms of percentage spend by Social Security starts decreasing (since the boomers start dying) in just a few years. Again, not just by my numbers — by the CBOs as well.

    Medicare, on the other hand, last year spent MORE than Social Security but has a tax rate of less than ONE QUARTER that of FICA. If you think that’ll work out…. no it won’t, and you can’t fix it with a tax increase NOW because of the 30+ years of malfeasance. That’s the math.

    The POLITICS side is that there is utterly no reason other than fraud, felony and scam that medical care is nearly 20% of GDP. It *WAS* 4% and must go back there, NOW — or the entire med system as we know it will collapse, likely taking with it federal, state and local budgets. If you think the government can *add* $1.5 trillion a year to the *existing* deficit run rate in 2024 to keep the scam going you’re flatly out of your mind — and that’s the projected requirement. Right here and now, today, it’s $800 billion — each and every year forward.

    Exponents are a bitch when you’re on the wrong end of them.

    In the 1990s I started raising hell about this when I was running my Internet company because the trend was clear as was the exponential progression. To the person above who said I predicted the end date was before the end of Trump’s FIRST term, I challenge you to provide the quote. My original projection in the early 1990s was “30 or so years hence” and being off a couple of years on a 30 year timeline is, in my opinion, pretty damn good when you control ZERO of the variables involved. Further, the article in question isn’t citing “my” guesses on dates at this point IT IS CITING THE CMS TRUSTEES DATE OF EXHAUSTION — which just happens to be approximately in the same place (gee, they can do math too?)

    What I *did* say when Trump was elected (and have continued to) was that markets *never* let you actually hit the wall and that the point at which they throw up and force an issue that is apparent and on the horizon cannot be determined in advance. That is why it has to be fixed NOW — because the odds are quite high that indeed it WILL be before the end of Trump’s first term, not on the math but because the markets will call “BS!” on the entire charade and down it will all come on our heads.

    There ARE solutions. My original article linked to this, which provides one workable path forward. Of course nobody wants to debate that because then all the scams disappear. Fancy that. https://market-ticker.org/akcs-www?post=231949