How U.S. Healthcare Spending Fails Patients

The murder of a high profile healthcare executive highlights issues surrounding the U.S. healthcare system, particularly its high costs and poor outcomes. Frustrated by healthcare inefficiencies, patients and doctors criticize the profit-driven insurance industry, believing significant administrative expenses hinder patient care. It has provoked a hard look at a problem that needs a solution if we want to improve health outcomes and lower costs.

Like you, I have been following the news stories of Brian Thompson and Luigi Mangione. I can’t remember another time when an alleged killer received more understanding and sympathy than the victim. (Although it has probably happened.)

Based on what is known now, the murder was connected to one man’s occupation, healthcare insurance executive, and the other man’s grievance, healthcare cost and delivery. I am sharing this post from Minnesota Reformer, slightly edited to focus on the healthcare issue, not the crime.

This story won’t be going away anytime soon, and shouldn’t. I hope this tragedy prompts a serious review and changes in how we provide and fund healthcare in the United States.

I also believe whoever is proven to be Mr. Thompson’s killer should be brought to justice. And I want Mr Mangione to receive attention to and treatment for his obviously significant medical issues.

(photos for illustration only)

The original title of this article is

A man radicalized by statistics

by Christopher Ingraham, Minnesota Reformer
December 12, 2024

In a note he was carrying when he was arrested, Luigi Mangione paints himself as a man radicalized by statistics.

“The US has the #1 most expensive health care system in the world, yet we rank roughly #42 in life expectancy,” wrote the alleged killer of Brian Thompson, the late CEO of Eden-Prairie-based UnitedHealthcare.

“United is the [indecipherable] largest company in the US by market cap, behind only Apple, Google, Walmart. It has grown and grown, but [h]as our life expectancy?”

Mangione is a scion of a rich, connected Maryland real estate family who recently withdrew from friends and family following severe medical issues. The numbers he cites are, in broad strokes, accurate.

Photo by Karolina Grabowska on Pexels.com

Healthcare by the dollars

On life expectancy, the U.S. ranks somewhere in the 60s among the world’s countries, according to data from the United Nations, falling in between Panama and Estonia. Among the wealthy subset of countries that are part of the Organization for Economic Cooperation and Development, we rate 32nd out of 38.

The U.S. also spends far more on health care than any other country in the world: around $12,000 per person each year, thousands of dollars more than the next-highest spenders. 

The discrepancy between the staggering amount of health care spending and our relatively short lives has been perennial fodder for commentary and political debate: Where is all that money going?

The answer, to a significant degree, is that it’s being skimmed off by the private health insurance industry.

“The largest component of higher U.S. medical spending is the cost of health care administration,” according to an analysis by Harvard health economist David Cutler. “About one-third of health care dollars spent in the United States pays for administration.” 

Peer countries, even those that have similar systems with multiple private insurers, pay just a fraction as much.

“Whole occupations exist in U.S. medical care that are found nowhere else in the world, from medical-record coding to claim-submission specialists,” Cutler writes.

That excess spending adds up to something like half a trillion dollars each year, according to a recent analysis of Congressional Budget Office data by Matt Bruenig of the People’s Policy Project. For every $100 spent on health care, $16 goes directly to private insurance companies and another $16 goes to hospitals to cover the cost of administering care.

Only about $68 goes toward actually paying for medical services.

Under a single-payer system, on the other hand, the CBO estimates that the public insurer would need just $1.60 of that hundred bucks to cover its costs, while the hospitals would only need $11.80 to cover administration, because they no longer have to deal with the hassle of multiple private health insurers.

Under that system, $86.60 would go toward paying for care.

Photo by Olya Kobruseva on Pexels.com

UnitedHealth Group

As the nation’s top health insurer and the fourth-largest company by revenue, UnitedHealth Group — the parent company of UnitedHealthcare — is also the chief beneficiary of all those billions in essentially wasted spending. In 2023 the company socked away $22 billion in profits on $371 billion in total revenue, adding up to a return for investors of $25 per share.

Think of it this way: A person who owned a single $500 share of UnitedHealth Group stock at the start of the year would get rewarded, at the year’s end, with $25 of America’s health care spending, despite contributing precisely nothing to American health care.

Those profits, it should be noted, don’t simply generate themselves. UnitedHealthcare has developed a reputation for being especially ruthless in its pursuit of shareholder value. The company “relentlessly fought to reduce spending on care, even as its profits rose to record levels,” ProPublica reported last year.

A U.S. Senate committee concluded UnitedHealthcare, along with other insurers, intentionally denied critical nursing care to stroke patients in order to increase profits. The company has been accused of using rigid algorithms to determine when to cut off payments, regardless of whether or not patients still needed care. 

Thompson had been accused of dumping stock before the company alerted shareholders that UnitedHealth Group was being targeted by a federal antitrust investigation.

What happens to patients?

Virtually every American has their own horror story to tell of the Kafka-esque indignities of fighting with insurers over billing codes, prior authorizations, pre-approvals, in-network providers, and the like. This likely explains the organic outpouring of condemnation launched at the health insurance industry in the wake of Thompson’s killing, which spanned the political spectrum, even as elites of both parties scolded the vigilante apologists. 

Doctors say the delays caused by those barriers between patients and their care, which are set up largely to protect insurance company profits, can make patients sicker and in some cases kill them.

Photo by Andrea Piacquadio on Pexels.com

In his manifesto, Mangione lamented that so little has been done to solve the profit-driven dysfunction of the health insurance system. “Many have illuminated the corruption and greed (e.g.: [Elisabeth] Rosenthal, [Michael] Moore), decades ago and the problems simply remain,” he wrote. “It is not an issue of awareness at this point.”

The note makes no mention of any personal struggles with the insurance system, despite evidence that Mangione suffered from chronic back pain and underwent major surgery for it.

But at some point — whether driven primarily by personal experience, systemic frustration, or the sheer force of a mental breakdown — Mangione decided to take things into his own hands.

republished under Creative Commons license from

Minnesota Reformer -part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Minnesota Reformer maintains editorial independence. Contact Editor J. Patrick Coolican for questions: info@minnesotareformer.com.

Exploring the HEART of Health

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Dr. Aletha

Dash into December

The year was marked by significant events, including a total solar eclipse, the Olympics, and record-breaking weather disasters. The U.S. re-elected its president amid global elections with unprecedented voter participation. December brought various holidays and winter solstice, affecting circadian rhythms. Tips for mitigating seasonal affective disorder were provided, along with reflections on New Year’s resolutions.

We have been dashing from one event to another all year, doesn’t it seem?

“dashing through the snow
in a one horse open sleigh”

James Pierpont, “The One Horse Open Sleigh”

In April there was a total solar eclipse across a long patch of the United States including a corner of my state. Millions of people watched it, some traveling many miles because it won’t happen here again for several years.

Then the world watched the exciting Paris Olympics and Paralympics in August, with some new events and the usual unexpected drama.

This was the hottest year on record with severe storms, floods, hurricanes, wildfires, droughts, and tornadoes causing massive damage to property and lives.

The United States elected another new president, actually reelecting the same one we elected in 2016, after four years of the president he lost to in 2020. We were not alone in holding an election. Fifty countries had elections in which 2 billion people cast votes, the most in history, according to Wikipedia.

December Holidays and Happenings

Today in much of the world December is synonymous with holidays, including

  • Hanukkah, December 25
  • Christmas, December 25
  • Boxing Day, December 26
  • Kwanza, December 26
figures in a nativity scene with a bright start in the sky
a Christmas Nativity scene from LIGHTSTOCK.COM, affiliate link

And because Thanksgiving occurred later in November, other observances are pushed into December.

photo compliments of Giving Tuesday

Giving Tuesday

GivingTuesday is a global generosity movement unleashing the power of radical generosity. GivingTuesday was created in 2012 as a simple idea: a day that encourages people to do good.

Since then, it has grown into a year-round global movement that inspires hundreds of millions of people to give, collaborate, and celebrate generosity.

It’s a simple idea: whether it’s making someone smile, helping a neighbor or stranger out, showing up for an issue or people we care about, or giving some of what we have to those who need our help, every act of generosity counts and everyone has something to contribute toward building the better world we all want to live in.

December 21-first day of Winter

Nothing says winter like snow and ice skating. photo by Dr. Aletha in Colorado

Where I live, in the northern hemisphere, winter begins on December 21, the winter solstice. We call it the “shortest” day of the year because it has the least hours of daylight of any day of the year. After that date, the amount of daily sunlight gradually increases until June, when we welcome the summer solstice, the “longest” day of the year.

I visited Paraguay and New Zealand last year, which are in the southern hemisphere. Their seasons and solstices are opposite of the above.

Seasonal Affective Disorder

Circadian rhythms are physical, mental, and behavioral changes that follow a 24-hour cycle. These natural processes respond primarily to light and dark and affect most living things, including animals, plants, and microbes. So in the winter, when we have less light exposure, our rhythms can be altered, leading to sleep disturbance, fatigue and sleepiness, and mood changes.

In seasonal affective disorder, people feel down and depressed in the winter months. Researchers believe this is due to changes in circadian rhythms as a result of seasonal changes in the length of daylight. People with seasonal affective disorder feel better using artificial morning light to realign their circadian rhythm with their sleep-wake cycle. I posted about SAD last month.

December is Seasonal Affective Disorder Awareness Month.

Understanding Seasonal Affective Disorder (SAD): Symptoms and Treatments

This new post shares information about Seasonal Affective Disorder (SAD) affecting many individuals as daylight hours decrease, causing depressive symptoms that vary between winter and summer patterns. Treatment options include light therapy, psychotherapy, antidepressants, and vitamin D supplements. It’s essential to seek help from healthcare providers if experiencing signs of SAD, which can impact mood…

Keep reading

Even if you do not have Seasonal Affective Disorder, you may want to try these tips from WebMD to minimize discomfort from the short winter days.

Try your best to get a minimum of 1 hour outdoors each day. That includes at least 15 to 30 minutes in the morning after daybreak. Another good time for a walk outside is around 1 to 3 p.m. in the afternoon when the body produces another brief spike of melatonin.

Face a window. If you spend most of your time indoors during the day, situate yourself so you face the window and open the shades whenever possible.

If your daytime room has no window, or just a small one, add more light-a table lamp on each side of your computer (1,500 lumens each) with a light-colored shade that diffuses the light. A plain white lightbulb will do, but for greater effect, go for blue light or put the light closer to your eye.

Get an extra boost. If you drive to work in the dark, travel across time zones often, or have trouble getting natural morning light, using a “dawn simulator” or “light therapy” lamp in the morning can also help. (affiliate link)

Set a curfew for screens. To minimize light at night, shut off your electronics (or at least dim the display and set it so the words are white on black) 2 hours before bedtime. Also use warm, low-level, dim lighting in your bedroom and living room at night.

December 31-New Year’s Eve

Is New Year’s Eve its own holiday, or just the “eve” of a holiday? Unlike Christmas Eve, it is in a different month and different year than its holiday. Or you could say it’s 364 days after its holiday, in the same year.

New Zealand is one of the first places on Earth to enter a new year. The island nation sits just west of the International Date Line, the boundary where one day becomes the next.

Raymond and I channeling our inner warrior at a Lord of the Rings movie filming location in New Zealand

In this map, the International Dateline is the black line along the far right margin. It runs through the Pacific Ocean. Down in the far right corner, in yellow, are the islands that comprise New Zealand.

created by Zviad Kelenjeridze, used by Creative Commons License

So by the time 2025 arrives in Oklahoma, much of the rest of the world has already been celebrating for several hours. When does 2025 arrive where you live?

New Year’s Resolutions

I don’t make “resolutions” for the new year, but it is a good point to take stock of life, set goals, and make plans to achieve them. It can be a fresh start, a time to leave behind the setbacks and disappointments of the past.

One area everyone should evaluate is their health, which is key to everything else in life. If your resolutions or plans involve health, this past post should give you ideas to pursue.

7 health habits we all need

Decluttering and simplifying our lives may reduce stress and increase satisfaction. While minimizing material possessions is vital, we should also focus on cultivating essential habits: prioritizing sleep, nutritious food, meaningful connections, generosity, physical and mental activity, and genuine communication.

Keep reading

exploring the HEART of health

I’d love for you to follow this blog. I share information and inspiration to help you transform challenges into opportunities for learning and growth.

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Dr. Aletha

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