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December 5, 2017

How The President’s Executive Order Can Lower the Cost of Medical Care

by Mike Dendy, AMPS CEO

 

It is amazing how many supposedly smart people, especially within the Washington establishment, don’t understand healthcare. Or maybe they understand more than I think they do and it’s just their greedy motivations that alter their thinking. We all need to appreciate the depth of the lobbying effort on Capitol Hill to keep America’s grossly overpaid healthcare system in place. Last I researched, there are five lobbyists for every representative on Capitol Hill representing a poorly managed industry that accounts for about 18 percent of GNP.

Republicans have espoused and then candidate Trump supported “more competition” to help lower healthcare costs. Conceptually, they are both correct. However, getting the correct competition in place is a different story than they seem to understand. Healthcare costs for the government, an employer, or even a family boil down to a simple equation: the number of medical interventions multiplied by the cost of those interventions equals the cost of medical claims. To get the full cost of the healthcare services, we must add administrative costs — i.e. claim management and adviser fees (commissions). So, to reduce the cost of healthcare, we have three targets.

 

Click here to download the full whitepaper.