Pareto is alive and well … and haunting the U.S. healthcare system.

Here are some numbers that put healthcare spending in perspective …

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According to a National Health Care Management Association analysis of healthcare spending:

  • The top 1 percent of the population is responsible for 20.2 percent of spending.
  • The top 5 percent of the population accounts for almost half (47.5 percent) of all health care spending.
  • ABout 60% of the top 5 percent (and top 1 percent) are 55 and older; about 40% are 65 and over
  • The top 10 percent of the population accounts for 63.6 percent of all spending.
  • 15.6 percent of the civilian, non-institutionalized population account for no health care spending at all.
  • The half of the population with the lowest spending accounted for only 3.1 percent of all expenditures.

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One Response to “Pareto is alive and well … and haunting the U.S. healthcare system.”

  1. Dan Says:

    Not surprising, I wonder what lifetime “investment” would look like if one would view the stream of heath insurance payments and employer contributions versus the payout for healthcare costs towards the end of life?

    To make this apples to apples analysis this would need to be applied to those who actually worked during their productive years. Maybe need to recognize the Medicare component as well.

    A contrasting analysis for those in the “Obamacare” category so that we get a more realistic picture of the real issues since the largest segment of these recipients are Medicade based individuals

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