One man and US Healthcare
Will the fever break on this system?
Any one man’s death is a tragedy, regardless of the circumstances behind his passing. He was someone’s child, grandson, and a member of the human race. Remember that as we examine what led to the murder of Brian Thompson, CEO of UnitedHealthcare.
Throughout my life, I’ve resided in 11 cities across two countries. In every place I've called home, one constant stood out: people deeply care about their loved one's well-being. While living in Canada, a nation where healthcare is a right, I witnessed the collective peace of mind that a universal healthcare system provides. For decades, I've wished for my fellow Americans to experience the assurance of focusing solely on recovery during times of illness or injury, when you are at your most vulnerable, without the burden of financial concerns.
Intimately, I know how broken our healthcare system is, and how frustrating and consequential it can be having survived a rollover in a convertible. I was life-flighted to the hospital, suffering life-altering injuries, leaving a wake of devastation to my car, my body, and my spirit. I was terminated from my job, lost my healthcare coverage, and was in the middle of several lawsuits while trying to recover as much of who I was prior.
That experience informed me just how much one’s life can change in an instant. This is just one man’s medical story. It’s not unique in America.
Ask any patient, admin, or practitioner and they’ll share horror stories about the administrative side of our system. Opaque pricing (negotiated with each insurance provider separately), delays in approval procedures (if you’re fortunate enough to get approval), and a system getting more expensive by the day. With incentive structures focused on cutting costs (treating patients), there’s great irony in a rallying cry by insurance CEOs to keep costs down.
“If we’re the greatest and wealthiest nation in the world, why the hell are we the most expensive healthcare system in the world?” -G. Cornejo
Through this lens, it’s easy to understand apathy for one man’s murder. Let’s examine the cause and effect.
1. US Healthcare Cost Per Capita
Healthcare spending in the United States is famously high. According to the Centers for Medicare and Medicaid Services (CMS), U.S. healthcare expenditures reached approximately $4.9 trillion in 2023, which equates to $14,570 per person. This per capita spending is nearly double that of other high-income countries like Switzerland, Norway, or Germany. The U.S. healthcare system is heavily reliant on private insurance, government programs (like Medicare and Medicaid), and out-of-pocket spending.
To break this down further:
Private insurance premiums, which cover the majority of the non-elderly population, have steadily risen over the last few decades, yielding $371 Billion in profits since the Affordable Care Act (Obamacare) was passed in 2010.
Medicare spending is also significant, as the U.S. population ages. Medicare alone accounted for about $900 billion of total healthcare spending in 2022.
Out-of-pocket costs, such as co-pays, deductibles, and prescriptions, also contribute to the total financial burden on individuals.
2. The Total Cost of U.S. Healthcare
In 2023, the United States spent an estimated 17.6% of its GDP on healthcare, making it the highest spender among developed nations. The healthcare sector accounts for a vast portion of the U.S. economy, with total healthcare expenditures projected to surpass $7 trillion by 2030, according to the CMS (Centers for Medicare & Medicaid Services). This staggering cost is driven by several factors, including:
The price of healthcare services tends to be higher in the U.S. compared to other nations.
Administrative costs associated with private insurance and billing (18% private insurance vs 2% Medicare).
The significant use of advanced medical technologies and prescription drugs (For which the government doesn’t negotiate drug pricing as every other nation does).
A fragmented healthcare system that results in inefficiencies and lack of coordination.
3. Life Expectancy in the U.S.
Despite the high level of spending, the United States has struggled with relatively low life expectancy compared to other high-income countries. As of 2023, the life expectancy in the U.S. is about 77 years, which is lower than many other developed nations, including Japan (84.7), Switzerland (84), and Australia (83.2).
4. Insurance Company Profits Since ACA Passed
Insurance companies have experienced significant profits over the past decade, particularly in the wake of the Affordable Care Act (ACA), which expanded access to health insurance through the creation of health exchanges and Medicaid expansion in many states.
From 2010 to 2023, health insurance companies like United Health Group, Anthem, Cigna, and Kaiser Permanente generated $371 billion in profit. Notably, UnitedHealth Group's annual profits have risen by nearly 400% during this period.
While these profits have benefited shareholders and executives, increasing profitability reflects system inefficiencies, where high administrative costs and premium rates ultimately do not translate into better health outcomes for patients.
5. Medical Debt and Bankruptcy in the U.S.
One of the most distressing aspects of the U.S. healthcare system is the financial burden placed on individuals. Even with insurance, many Americans face significant out-of-pocket costs due to high deductibles, copays, and uncovered services. Medical debt has become a leading cause of personal bankruptcy in the U.S., with millions of people unable to pay off medical bills.
According to a 2019 American Journal for Public Health study, medical debt accounts for 66.5% of bankruptcies. This figure includes individuals with insurance who cannot cover their healthcare costs and those without insurance. This significant financial burden affects not only individuals' financial security but also their access to future credit and housing.
Conclusion
One man.
One man killed one man.
One man has ignited a nationwide discussion about navigating a flawed healthcare system in a society that often emphasizes one man must look out for themselves, rather than each other. We must shift our mentality from a one-man healthcare system to one that addresses every man's needs. The shared vitriol of the masses in response to one man slain one early morning, stems from that one man being at the top of a system that has seen complicit murder of the masses' loved ones, all for the pursuit of profit. Any one man’s death is a tragedy, regardless of the circumstances behind his passing, but let’s not forget that one man ran an operation that systematized murder itself.