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Future of healthcare financial ecosystem belongs to consumer

Current healthcare financial ecosystem is extremely wasteful and it is not designed to help consumer take care of their health. We pay insurance, co-pay, deductible, co-insurance to give financial benefit to insurance company, third party, pharmacy, Dr. For every dollar of healthcare spending we spend 75 cents in managing the expenses and only 25 cents go to Dr, and pharmaceutical Comapny. We need to empower consumer to control healthcare spending.

  • Nov 18 2013: I agree with your statement, and want to add that the future of the Healthcare ecosystem not just belongs to the consumer, but depends on the consumer. The fastest growing portion of bad debt comes from the insured consumers who fail to pay their portion after the insurer has paid their share. Studies show that this portion of revenue for health care providers is growing the fastest. A recent McKinsey study suggests that consumer payments "balance after insurance" is increasing 30% every year. So unless new payment systems are introduced this bad debt related to the consumer is going to cripple the healthcare ecosystem even more.
    Link to McKinsey Study.
  • Nov 18 2013: Insurance company charge 700 dollar a month for a family of two with 6000 dollar deductible. On an average family will two will spend about 3000 dollar per year. This means money paid to insurance company is adding almost no value to consumer (with some exception). Consumers should be allowed to pool together as a group and buy insurance same as self funded group. Their cost will be down by 50 to 80%.