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

I’d love for you to follow this blog. I share information and inspiration to help you turn health challenges into health opportunities.

Add your name to the subscribe box to be notified of new posts by email. Click the link to read the post and browse other content. It’s that simple. No spam.

I enjoy seeing who is new to Watercress Words. When you subscribe, I will visit your blog or website. Thanks and see you next time.

Dr. Aletha

What to Remember in November

Daylight Saving Time ends on November 3, causing sunsets to arrive earlier. In November, individuals can adjust health insurance plans during open enrollment periods, including Medicare and the Health Insurance Marketplace. Additionally, November 5 is Election Day, where voters select electors for the Electoral College, culminating in Inauguration Day on January 20, 2025. Please vote, it matters.

Daylight Saving Time ends November 3

Some of us will be in new time zones. Maybe not completely new, but our time will change by one hour as Daylight Saving Time ends and we resume standard time on November 3.

That means sunsets will come even earlier than they have been, and there will be fewer daylight hours until the first day of winter, December 21. If you live south of the equator, you welcome more sunshine instead.

For most people, “falling back” is less disruptive to sleep than “springing forward.” To make the adjustment a little easier, you can adjust your sleep/wake schedule gradually in the mornings and/or evenings a week before the change.

Otherwise, when the time changes you can enjoy sleeping an extra hour (if you can) or waking up earlier than usual until your body adjusts

Photo by Ketut Subiyanto on Pexels.com

Health Insurance Enrollment for 2025

Many people have a chance to change their health insurance in November.

For Medicare recipients, October 15 through December 7 is open enrollment where we can change from regular Medicare to an Advantage Plan. Or, if you are already in an Advantage Plan, you can switch to a different one.

Medicare is available to anyone at age 65 and certain other people.

Medicare health plans provide 

Part A (Hospital Insurance) and Part B (Medical Insurance) benefits to people with Medicare. These plans are generally offered by private companies that contract with Medicare. They include 

Medicare Advantage Plans (Part C)Medicare CostPlans,Demonstrations/Pilots, and Program of All-inclusive Care for the Elderly (PACE).

Medicare Part D covers prescription drugs.

a Medicare Advantage plan offered by UnitedHealthcare

If you aren’t eligible for Medicare or an employer-sponsored insurance plan, you may get coverage through the Health Insurance Marketplace, with open enrollment starting November 1. This program was established by the Affordable Care Act, also known as ObamaCare.

If you are covered by an employer-sponsored health plan, you may be required to sign up for next year’s coverage, especially if you want to change coverage options. Otherwise, you may automatically be enrolled into the same plan.

Whatever plan you choose, you should carefully evaluate your options, especially out-of-pocket costs. In a previous post, I reported on the problem of medical debt which often occurs due to unexpected expenses not covered by insurance.

A less expensive insurance plan could cost more if it requires higher deductibles and co-pays than you would with a plan with higher premiums. You should consider the cost of anticipated health care as you choose coverage while planning for unexpected medical expenses.

Photo by Edmond Dantu00e8s on Pexels.com

November 5-United States Election

The official day to vote is Tuesday, November 5, but millions of people have already voted. My husband and I voted on Halloween, a first for us.

But technically, we do not elect the President and Vice-President that day. Here is how it works.

Timeline of key presidential election dates
  • Nov. 5, 2024—Election Day
    The voters in each state choose electors to serve in the Electoral College.
  • By Dec. 11, 2024—Electors appointed
    The executive of each state signs the Certificate of Ascertainment to appoint the electors chosen in the general election.
  • Dec. 17, 2024—Electors vote
    The electors in each state meet to select the president and vice president of the United States.
  • Jan. 6, 2025—Congress counts the vote
    Congress meets in joint session to count the electoral votes.
  • Jan. 20, 2025—Inauguration Day
    The president-elect is sworn in as president of the United States.

Source: The National Archives and Records Administration

Let’s all do our part to ensure a fair, safe, secure, and trustworthy election. Be careful what you share on social media; don’t believe everything others share.

Remember that elections involve people, and people make mistakes. A mistake is not cheating. Recognized mistakes should be acknowledged and corrected. Unsubstantiated accusations, threats, and violence are unacceptable. Cheating should be proven and guilty people held accountable.

Remember the people running elections in your community are your neighbors, and treat them as such. Consider volunteering yourself.

January 6, 2021 happened once, it doesn’t have to happen again.

Photo by cottonbro on Pexels.com

Exploring the HEART of Health

I’d love for you to follow this blog. I share information and inspiration to help you turn health challenges into health opportunities.

Add your name to the subscribe box to be notified of new posts by email. Click the link to read the post and browse other content. It’s that simple. No spam.

I enjoy seeing who is new to Watercress Words. When you subscribe, I will visit your blog or website. Thanks and see you next time.

Dr. Aletha