tag:blogger.com,1999:blog-8153371977147923076.post1325319532240813217..comments2024-02-19T03:16:52.196-05:00Comments on Business and policy through an Economist's Lens: How High Can Health Care Costs Go?Kevin Frickhttp://www.blogger.com/profile/14397912695107883192noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8153371977147923076.post-79299807823705989492010-01-11T15:21:57.086-05:002010-01-11T15:21:57.086-05:00I believe average annual cost per person of health...I believe average annual cost per person of health care could go to 50,000 dollars. Currently if health care cost go up some revenue is lost as people who cannot afford the new price drop out. However the number of people who just pay the increased price is so much larger than the number that dropout that total revenue to the health insurance industry goes up. Eventually if you set the price high enough any further increase will not add to total revenue because the loss from people dropping out will equal the gain from the increased price. That price is $50,000 per year. I am assuming an income level of $70,000 and allowing the first $20,000 would go to living expenses. Using U.S. census statistics at this point 34% of people in the U.S would be able to pay this amount. At this point the health care industry would see total revenue of about 1.7 trillion dollars. Let’s hope health care reform prevents this from happening. My point is if you let maximum profit drive the price of health care only the top 34% will be able to afford it.Unknownhttps://www.blogger.com/profile/04103466077685176618noreply@blogger.com