There has been a lot written about the state of healthcare in America. And if you’ve been paying attention, you know that a lot of money gets spent. A lot by the federal government in medicare and legislation. A lot by state agencies. A lot by employeers. And even more by employees themselves.

But how much is really being spent? And where does all that “spending” go? To test your healthcare spending IQ, take the Healthcare Spending Quiz. Then you decide if all those dollars make GOOD sense.

1. How much is spent on healthcare each year in the US?

a. $1.5 billion

b. $2 Billion

c. $5 Billion

d. $2 Trillion

Answer: The answer is “d”. According to Modern Healthcare Online, overall spending on US healthcare was $2 TRILLION in 2005 and is projected to increase 20% by 2015.

2. How many personal bankruptcies are caused by illness or medical bills?

a. 10%

b. 50%

c. 33%

d. 75%

Answer: The answer is “c”. Half of all personal bankruptcies are caused by illness or medical bills, a number that increased 2200% between 1981 and 2006 (according to Health Affairs Journal, “Medical Bankruptcy: Myth v. Fact”, David Dranove and Michael L. Millenson, March/April 2006; 25(2): w74-w83).

3. How much of every dollar do private insurance companies spend on administrative overhead?

a. 10 - 20%

b. 20 – 25%

c. 25 – 30%

d. 30% or more

Answer: The answer is “d”. More than 30% of every healthcare dollar is spent on administrative overhead in private insurance and services that don’t appear to improve health or the quality of care for patients. That is approximately $650 billion per year. “More than is being spent on the war in Iraq,” says John Abramson in his column for Harvard Medical School (Los Angeles Times, Nov. 3, 2006).

4. From 2000 to 2005, how much did health benefits program fees rise?

a. 25%

b. 38%

c. 73%

d. 100%

Answer: The answer is “c”. From 2000 to 2005, health benefits fees increased 73%, compared to an aggregate increase in workers’ income of just 15%. (Chicago Tribune, Jan. 31, 2006) or 3X faster than wages and inflation combined (UC Berkeley Center for Labor research and Education, Dec. 2006).

5. By how much has the average U.S. employee’s contribution to “employer-sponsored” health benefits plans increased since 2000?

a. 33%

b. 75%

c. 100%

d. More than 100%

Answer: The answer is “d”. According to the Kaiser Commission on Medicaid and the Uninsured, between 2000 and 2004 the average cost of employer-sponsored health care plans was $3695 for an individual and $9950 for a family. The employee’s average contribution to those plans was $2261, an increase of more than a 160%! While those numbers were tracked from 2000 to 2004, employee contributions have continued to rise, so it is safe to say that employees have seen well above 160% increase in their own pay outs for their “employer-sponsored” health packages in just seven years.

That is the “Healthcare Spending Quiz”. Unlike other quizzes, a higher score, doesn’t make you feel like a winner. It simply makes you better informed about the downward spiral traditional U.S. healthcare is in. The only thing that can make you or me or Joe down the street a winner is working together to make a positive change in healthcare choices.

Pass this quiz along and give a friend the power of knowledge.

About the author

Jim Martinez is a National Sales Director with Ameriplan USA ®. Offering discount dental and health plans for individuals or households. Any age or preexisting conditions are accepted and plans start at only $19.95 per month. Be sure to visit the section on health articles for more quality information. You are free to reproduce this article as long as you reprint the entire article including this resource box and all links.



Thanks to Redrose for contributing this article to our Healthcare blog:

Home Health Aide