More proof that third-party payers mask and insulate patients from the true costs of medical care. If people paid for their own services rather than looking to group coverage and third-party providers the US wouldn't be spending $2.5 trillion a year for medical care and rates wouldn't keep growing to cover the ever-expanding "needs" people have for care.
Here's an example for you. My best friend's dad had a bad heart all of his life (he learned about it in his twenties). Despite the weak heart, he still managed to be active and provide a good living for his family. he had to take regular breaks to give himself a rest or he would be in serious cardiac trouble. This was the nature of his life until he turned sixty. At that age he was no longer able to get past his weak and dying heart and he ended up living in the cardiac unit of the hospital for about a year. He was on a heart pump and needed regular medical care while he waited out his turn on the heart transplant list. Finally when he was likely days away from dying in the hospital according to the doctors, a transplant heart became available and he was rushed into surgery to receive his new heart. He has been living for more than ten years past the transplant and has a great quality of life. I personally love this man like a father and am very grateful that he was able to survive a life-threatening condition.
The problem with that story is that his lifetime medical insurance premiums were likely around $240,000 in today's dollars ($6,000 a year * 40 years) but the costs just in his final year leading up to the transplant were far in excess of his total lifetime contributions:
Average per day in hospital - $7,000*365 = $2,555,000
Average cost of transplant - $ 145,000
Total cost of transplant not including the years before and after his time in the hospital = $2,700,000. That means financially he only contributed about 9% of the total cost of his care. Where did the other $2,457,000 for that year come from? Obviously this came from the other members of his coverage group even though they didn't know him. Mathematically more than 400 people in his group had to receive no medical benefits in return for their insurance premiums in order for my friend's life to be saved (far more when you consider the full fifty years of him having a bad heart and not just the one year where he was waiting for a transplant). On an annual basis he only contributed less than 0.2% of his own medical costs.
I know this man and the love he has for his family. If he didn't belong to a group insurance program and was rather faced with bankrupting his family with a nearly $3 million medical bill in one year, he would never have permitted the procedure. He would certainly rather have died than to see his family suffer irreparable financial harm trying to keep him alive. By his own evaluation he would never have claimed that his life, at age sixty, was worth the price that was required to save it. His lifetime earnings may not have even been as high as this one medical event and objectively there was no way to accomplish this life-saving procedure except for the generosity of others. now he and I would likely have been fine with a fund being setup in his name and if enough people were willing to donate to save his life, I'm sure he would have gone through with it. Absent the safety net of group coverage, federal tax dollars, or generous donations it would have been logistically impossible to save his life through his own earning potential. And therein lies the problem: lifetime medical care can easily exceed the total lifetime earnings of an individual person and the only way to make up the difference is to force others to pay for someone else's care. Multiply this times 311 million Americans and we have a financial crisis of epic proportions. Just because we have the medical technology to provide care doesn't mean the nation has the financial resources to pay for all of the procedures and drugs and malpractice insurance that people may want or "need".
I can assure you that if I were faced with the same scenario that I wouldn't bankrupt my family to save my own life. I would evaluate each condition and the cost of the treatment and only purchase those procedures that I felt were necessary and beneficial to my entire family. We have lost that direct relationship of cost vs. benefit under these systems and we will never be able to sustain those kinds of costs if the expectation that there is no financial limit to the cost of saving a human life or to provide medical care for every single condition that people may face. Entitlements and socialism have already bankrupted this nation, we just haven't admitted it yet.