The FBI defines terrorism as “Acts dangerous to human life…intended to intimidate or coerce a civilian population.” Much of the behavior of our current health care system meets that definition. The facts show intention on the part of corporations to intimidate the population by using market strategies to charge whatever they like for their medical products and services, and an effort to coerce the public into accepting the current system as the only option.
The Average American Family Pays $4,000 for Medical Fraud and Subsidies
Medical billing fraud is estimated at 10 percent of all health care, or about $270 billion, while patent monopolies raise the price of prescription drugs by another $270 billion a year. Combined, this represents an astonishing annual cost of over $4,000 to an average American household. As The Atlantic puts it, “The people most likely to bilk the system are doctors and medical providers, not ‘welfare queens.'”
Intimidation by Outrageous Markups
In a recent analysis of 50 hospitals (49 for-profit) with the highest charge-to-cost ratios in 2012, the average markup was 1,000 percent, which means that a procedure costing a hospital $100 is marked up to $1,000 for us.
Some of the markups test the limits of sanity: an 80-cent needle for $143.25 (a 17,000 percent markup). A 25-cent IUD device for $1,000. A blood test that costs $10 in one hospital and $10,000 in another.
A Johns Hopkins professor explained, “They are marking up the prices because no one is telling them they can’t.”