This document discusses the problems with the current U.S. healthcare system and its negative impact on individuals and the economy. It notes that many people with insurance still face bankruptcy due to medical costs, and that rising healthcare spending crowds out funding for other important social services. This has led to the rise of the "functionally uninsured" - those who have insurance but cannot afford deductibles and out-of-pocket costs. The document proposes that redirecting healthcare savings to local economies through programs like Health Rosetta could help address these issues by circulating more money through communities.
6. CATASTROPHIC MISALLOCATION OF RESOURCES
HEALTHCARE
SPENDING
-50% LOCAL AID
-31% PUBLIC HEALTH
-22% MENTAL HEALTH
-14% INFRASTRUCTURE, HOUSING & ECON. DEV.
-13% LAW & PUBLIC SAFETY
-12% EDUCATION
-11% HUMAN SERVICES
HEALTHCARE SPENDING DEVASTATES SOCIAL DETERMINANTS OF HEALTH
(FY01 - FY14 - STATE OF MASSACHUSETTS)
+37%
7. Rise of the “Functionally Uninsured”
20 years of wage
stagnation/decline caused by
healthcare
60% of workforce < $20/hr;
Avg family of 4 premiums
>$20k
>50% of households have <
$1k savings
>50% of workforce has >$1k
deductible
WSJ: “Healthcare costs means
they spend more time fishing
& elk hunting to avoid buying
meat at the supermarket.”
8.
9. LARGEST GENERATION IN HISTORY (MILLENNIALS)
SLATED TO SPEND > HALF OF LIFETIME EARNINGS ON
HEALTHCARE
MEDICARE TAXES & PREMIUMS
DEDUCTIBLES & OUT-OF-POCKET EXPENSES
INSURANCE PREMIUMS
EMPLOYER PREMIUMS
EMPLOYER MEDICAID TAXES
FEDERAL & STATE TAXES
VISIBLE
PAYMENTS
HIDDEN PAYMENTS
GRAND TOTAL
$.6M
+
$1.3M
$1.9M
TOTAL LIFETIME EARNINGS $3.8M
10.
11. But, innovative employers have proven they
don’t have to be victim to the tyranny of low
expectations.
Some are spending 50% less than status quo
health plans with superior benefits.
Employers and employees have
reached their breaking point…
12.
13.
14. The Health Rosetta Dividend
Redeploying previously squandered healthcare
costs enormously & positively impacts society
- “Shop local” comes to healthcare recirculating $$ in local economies
- Hotelier pays for employees & their kids college education
- Service center’s profit-sharing increases ~$1000/employee
- School district has $2B more available for education
- Manufacturer able to 2x R&D spend during industry recession saving jobs
~$400 million saved across Health Rosetta advisors
Pre
2019
Plan to repurpose $billions into local people/economies
Post
2019
If the Health Rosetta was in a pill, it
would be the blockbuster drug of the
century.
15. “Of all the forms of inequality, injustice in health is the most
shocking and the most inhuman because it often results in
physical death.” The Rev. Martin Luther King at the Second National Convention of the Medical Committee for Human
Rights, Chicago, March 25, 1966.