Healthcare Explained



hey why is health care so expensive and how does Obamacare plans on fixing that to understand health care in America you have to think about bananas how so when you buy bananas do you ask how much they cost yes how about when you get a prescription filled do you ask how much that costs no or when you visit a doctor or get surgery do you ask how much they charge No so you spend more time figuring out how much to pay for a $2.00 fruit than for a $2,000 medical procedure Wow that's completely bananas most of us behave that way so banana prices remain reasonable while healthcare costs explode because nobody is shopping around for health care yes so the insurance companies make the pricing decisions yes but that means the patient and doctor aren't why doesn't this problem happen to other kinds of insurance medical insurances to regular insurance what a politician is – an honest man fake and totally twisted how so traditional insurance is protecting against rare and catastrophic events and charging a premium based on the likelihood of those events but my health insurance pays for everything that's the problem well imagine if car insurance paid for oil changes would you shop around for an oil change no I would go to the most convenient place go often and ask for the expensive synthetic stuff do you even know what that does not a clue but so long as somebody else is paying then why not in that scenario your car insurance company would have too many customers getting too many pricey oil changes so they would have to raise premiums to stay in business if they make me pay more then I'm going to get even more oil changes to get my money's worth congratulations why now you understand the death cycle of health insurance so since we don't pay for most medical services we use too much that keeps driving up the cost to the insurance company and they have to raise our premiums but the more they charge the more health care we use to get our money's worth and since Obamacare will increase coverage by forcing everyone to buy health insurance this problem would get worse the more you force people to buy insurance that they don't want the more medical services they would consume to get their money's worth what other problems are there with health care in America health insurance premiums are not based on by risky someone is why does that matter are you a safe driver yes do you think your car insurance should be cheaper than a teenage boy trying to impress his girlfriend of course I am less likely to get into an accident but what if car insurance companies were forced to charge everyone the same premium then I guess they would charge me more to make up for the bad drivers exactly what does this have to do with health insurance many states limit how much health insurance companies can charge people with pre-existing conditions an Obamacare will make it illegal to base insurance premiums on someone's medical riskiness wait a minute that's not a fair comparison why not pre-existing conditions are not the person's fault it's not fair to make someone pay more for a disease they couldn't help getting what's fairness got to do got to do with it this is not a Tina Turner song it's real life saying fairness has nothing to do with it is cold-hearted it is cold-hearted but it's also reality economics is based on price and incentive not fairness economies based on fairness eventually go bankrupt like Greece are you saying there is no room for discussing fairness in health insurance there are ways to help the disadvantaged but that kind of fairness doesn't belong in health insurance it belongs with charities I would donate money to a charity for people with pre-existing conditions but I wouldn't force insurance companies to charge them the same rate I see there is another risk to insurance companies ignoring pre-existing conditions what people would no longer want to buy health insurance I don't understand imagine you could buy homeowners insurance the day after your house burned down would you buy insurance every year of course not if I could wait until after a disaster why waste the money the same would apply to health insurance why pay thousands today when you can just wait until after you get SiC but that would mean the only people buying health insurance are the ones about to cross the health insurance company a ton of money so health insurance companies would have to charge their healthy customers more and more but that would drive even more healthy people to not buy health insurance that's why many young healthy Americans don't buy health insurance they realize they are being overcharged to make up for the second elderly this is also why Obamacare has to force everyone to buy insurance if they didn't the lack of healthy people kicking money into the insurance pool would collapse the system making a product less desirable for consumers than forcing them to buy it is not an elegant solution it's like pouring gasoline on a fire then buying a bigger fire extinguisher so what's going to happen when Obamacare is fully implemented a lot more people will have health insurance so a lot more people will now want to visit the doctor yes especially since the new law makes cheaper high deductible policies illegal forcing people to pay for premium insurance will drive them to seek more doctors visits to get their money's worth so demand for doctors will go up but the supply will stay the same supply you can't invent doctors out of thin air so the same number of doctors will have to handle many more patients there will be longer wait times and lower quality service but the president said the new law will not impact the quality of medical services sure and my mother said it was the tooth fairy that left a quarter under my pillow just because someone says something doesn't make it true you have to follow the chain of cousin effect Obamacare is going to increase the demand for medical services without increasing the supply that means prices go up and quality goes down what other effects are there going to be there are going to be tons of companies in America that hire 49 employees but not a single person more why 49 because the new law says any company with 50 or more employees is to provide health insurance for all of them so the cost of the 50th employee is astronomical Wow what other crazy side effects will this law have tons but I can't list all of them why not the for law is 2,000 700 pages long and I don't have the time to read it doesn't that disqualify you from having such strong opinions by that measure you could also disqualify the president the Congress and the Supreme Court justices I am sure none of them have read the entire bill either but this is one of the most sweeping legislations in American history and it's going to impact so much of our lives and you are telling me it's packed with dangerous provisions that a lot of people aren't aware of you really shouldn't dwell on it too much why not cause it's going to drive you completely bananas we hope you found this cartoon helpful if you are one of the brave souls who has actually read the entire Affordable Care Act then please share your thoughts in the comments below check out this website for more explanatory cartoons thanks for watching bye bye

26 comments

  1. What about all the dirtbags who just don't care and take the ambulance to the ER once a week for their non emergent issues BECAUSE the state (you and I) are paying for their healthcare?

  2. Thank you for making this (even though it's been years). The 'Pre-existing conditions' part was a bit confusing, but everything else, I mostly agree with.

  3. Actually this video does not make any sense. The cost per capita per patient is higher in the US than most other western countries with Obama type care. But in those countries health care is a right and non profit. Take the middle man out the insurance companies and the cost goes down.

  4. There is place for fairness in health insurance and it comes down to eliminating certain rating factors and pairing selections of insureds into communities of sharing the risk in their group. This is clearly profitable and adequate rates can still be set…of course healthies will need to subsidize less healthies, but doing so is in everybody's best interest because poor healthcare can breed outbreaks and pandemics or delay discoveries or new deformities untreated in one person that would have shed light on another.

  5. Support charities for pre existing conditions? That is pathetic really. Those charities don't have enough money to cover it, unless they actually FORCE people to donate to them. Which is why the only solution to solve the UNFAIR problem is either by using taxes, or making people pay more for their insurance. 
    Also, if they have problems with people NOT buying the right insurance until they get the illnesses/injuries, they can just use waiting periods (where they still pay the premiums but can't access the services until a certain time), like most companies already do for pregnancies.

  6. Mr Scott,

         You repeatedly take the republicans to task for not coming up with health care solutions for twenty-two years.  We had had best health care in the world despite democrat insistance on including government involvement in paying for everything from gender reassignment to drug abuse.  Are you even aware no republican voted for Obamacare regardless of bribes, lies, and arm-twisting?  Are you aware that since 1982, no one care be turned down for healthcare treatment, which is why emergency rooms in southern California collapsed?

         Your criticism appears very selective omitting very guilty parties.  If you want government or single-payer, Raoul Castro’s island paradise may provide your best choice when a family members suffers an emergency.

  7. You've made a good point. I am going to get one of those sexy colostomy bags 'cuz someone else is footing the bill.

  8. I haven't read the entire healthcare bill, but I find it interesting that the republicans that have been trying to get rid of Obamacare never said anything to the American people or even to the democrats in the senate and congress about high deductibles and the additional 20 taxes on he middle-class under Obamacare.  The also don't speak of the death panels and how the hippo laws our privacy will be violated under Obamacare.

  9. Hmmm … rhetorically it's quite interesting.  Of course, there is always a terrific degree of insulation, and thus isolation of the faux dialectic – or to latch on to Dr. David Healy's favored term –  'Framing the issues.'  Particularly memorable was a statement that with the problems facing health care today – 'The thing that Universities used to be awfully good at, which was RHETORIC, these days it's often called 'MEDIA STUDIES,' that's the thing we need.  We need people who can get a grip of the issues and see how to frame them." So, with just that much in place, what followed was (two years ago), that a lot of people have recognized that we have a crisis [in health care] these days [2012] … As things get framed … you often hear the problem being framed in terms of 'CONFLICT OF INTEREST.'  Now the big political blow-ups over insurance were still at least a year away, so it  was nothing to do with framing health care for humans in terms of markets, industry, economics and car automotive services Beyond the 5 year 50,000 mile warranty, coverage and free scheduled service  that came with my mini back in 2003, it was assembled in the UK, shipped and sold in the U.S. and though it may out-live me, the hope of the automotive industry is not that it will.  And the hope of the health care industry is not that I will out-live it.  In either case, consumer or vehicle, industry has created a market, and as with cars, consumers are really the PRODUCT, and he CURRENCY.  And this market already long preceded the so-called ObamaCare, the amount spent annually on "health care" already exceeded 2 Trillion Dollars, Health outcomes had already been declining, and the market manufactured consistently for itself an annual 100,000 dead patients, and 2 million (expensive) hospitalizations, of consumer/products in the course of just doing business (so no stats from malpractice, error, negligence, drug OD, or unsuccessful attempts to treat life-threatening conditions are included in THAT number, although it was drawn from statistics which only counted people who had insurance or state/federal health coverage).  So, that's before another 23 – 40-something million were finally pulled in.  And if it weren't profitable, industry would not have maintained the market as it has, so really, the extra  people now getting "coverage," adds a boosted supply of fresh products and currency to the market.  So now there's a surplus coming in, and a market that knows how to derive liquidity from capital. Because we aren't talking about life insurance here (which is of course in event of death payment – one shot deal), Live or die, longer or shorter, every consumer/product rakes it in.  No mention of any of that in the "new law," (although I haven't read every page … I did skim, and noticed nothing mentioned.)

  10. Wow!  Wrong, wrong!!!  I am ‘so’ tired of hearing so called experts say the main reason for the high cost of health care is because patients don’t know the true costs. "They are insulated from the true cost, insurance companies negotiate the prices down, so patient over use healthcare." REALLY??? Wow! Wrong, wrong, wrong! Well, with that stupid thinking, we should care for example the true cost of a flat screen TV from China before a business like Costco, with their HUGE buying power negotiates the price down to $599. But it would have been $6000 before… I do not and shouldn't care; I go to Costco because they have buying power to get products cheaper for individuals, i.e. me.

  11. No one gets more screwed over than the Americans,the wealthiest country on Earth,and no doubt the average American citizen is taxed to the hilt,yet the government provides hardly anything in the way of welfare,

  12. "pure BS and propaganda" ?
    Sounds pretty much like this video says it the way it is and will be, to me.
    7 million lost their outlawed insurance coverage and 7 million got new coverage under ObamaCare on March 31.. What an achievement!

  13. Propaganda. There are a lot of half-truths and inaccuracies here. Prices in the U.S. medical industry are not consumer driven and haven't been for a very long time. The AMA and others see to that. If the Republicans really gave a damn about the people in this country, they would have pitched in and sincerely tried to improve upon what was originally their idea in the first place, instead of trying to sabotage the ACA at every opportunity because they hate Obama.

  14. It's a good analysis on the demand perspective but a little thin on the supply side.  Healthcare is an extremely regulated field that is inefficiently organized.  Doctors are responsible for a lot of functions that a nurse or a lesser trained individual could provide through medical licenses.  Doctors have an incredibly long period of training with huge upfront costs for a medical profession which is rapidly changing.  

    Since medical licenses are issued by the states there are a lot of barriers to moving practices between states.  Healthcare companies mark up prices because they are negotiated downward by the insurance companies (there are relatively few integrated healthcare companies).  There is huge differences between medical procedures in local hospitals.  The big savings from Electronic Medical Records was disproven through the Harvard study in 2009  (http://media.wbur.org/wordpress/1/files/2009/12/1120_erecords.pdf) and the Rand corporation has backed away from their initial claim.

    A lot of medical costs come from a very small percentage of people and most towards the last few months of their life.  Adjusting for violence, the United States has a pretty good general health stats even against countries like Japan.  Another part of the reason US medical costs are so expensive is that the US is largely subsidizing the world when it comes to medical R&D.   

  15. the point that should scare people is the fact that it is 20,000+ pages. who has read this whole thing and if they had whom could digest so much information? Also, an aspect the video didn't touch on is that the IRS is running it…

  16. The real problem that I have with this cartoon is that it doesn't explain at all why health care is so much cheaper (in total spenings INCLUDING the government spendings) in all the coutries that have universal health care.

  17. This video is full of wrong information. Healthcare cost is rising because no one ask how much a surgery cost! wow, the publisher needs to do some research to understand why cost is rising; it includes, use of fee for service not value for service, technological cost which are not necessarily cost effective, false claims to get money from CMS etc. The ACA will help to mitigate a lot of these problems. Yes, there are challenges but please just by watching this flawed video, dont render your opinion..

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