American doctors hate the health care system almost as much as you do

“Physicians elsewhere do not bear the same financial burden. I traveled in 2019 to the Netherlands, Australia, and Taiwan, which have three distinct health care systems that still manage to cover all of their citizens: universal private insurance, a public-private hybrid, and single payer, respectively.
In the Netherlands, physicians take three years of undergraduate studies, three years of master’s studies, and complete a one- to two-year internship before being licensed; certain specialties then require further training. Dutch university students typically graduate with much less debt (less than 25,000 euros on average, or about $26,200) than their American counterparts. In Australia, the training requirements would look familiar to US doctors — a decade or so of education and then on-the-job training — but the tuition would not, with annual medical school costs capped at less than $10,000 per year. Taiwanese doctors likewise spend significantly less money on their education, even relative to differences in cost of living, than US doctors.

What all of those countries have in common is more robust public support for higher education and generous loan repayment programs. The high cost of college is a longstanding issue in the US, and that contributes to the prohibitive cost of a medical education for reasons that have little to do with health care itself.”

“There is another way in which the US health system places an unusual burden on doctors: the headaches of health insurance paperwork. As left-leaning policy analyst Matt Bruenig wrote on the recent brouhaha over insurers and doctors after the killing of Brian Thompson, at least some of the excess pricing of US medical services can be attributed to the administrative costs that providers incur while dealing with private insurers.

The demands of insurance claims on doctors’ time and attention not only make for a less pleasant working experience, they also take them away from patients, which can contribute to worse health outcomes.

Here is perhaps the most telling statistic, from the Commonwealth Fund’s 2024 international survey of doctors: 20 percent of US doctors said they spend “a lot” of time on paperwork or disputes over medical bills. That was nearly double the rate in the country with the next highest share; 12 percent of Swiss doctors said the same working in their country’s system, which also relies on private insurers to oversee benefits.

Only 5 percent of Dutch doctors and 9 percent of Australian doctors said paperwork and billing took up a large chunk of their time.

This wasteful activity affects both the cost and quality of our health system. Among wealthy countries, US patients have the fewest number of consultations with a doctor in a given year, with the exception of Sweden, and spend the least time with their physicians. Time and money spent on administrative work, for both insurers and providers, account for about 30 percent of the excess medical spending in the United States.”

“The average physician salary in the US ranges from about $260,000 (for endocrinologists and pediatricians) to $550,000 (for certain surgeons). The most elite providers earn more than $1 million annually.

Dutch general practitioners, by contrast, make about 120,000 euros ($126,000). Even senior hospital surgeons typically earn about 250,000 euros. Australia, with a more robust private market, can be more generous: While primary care doctors earn between AUD$100,000 and $150,000 ($60,000 to $93,000) on average, senior practitioners make more and specialized surgeons can rake in as much as AUD$750,000 ($460,000) — much closer to the American norms.

Doctors in Taiwan — where, it should be noted, nationwide average incomes are about half of what you find in the United States — can make between $60,000 and $100,000 per year. The policy experts I spoke to there agreed that doctors are underpaid relative to the high number of patients they see, substantially more than a typical American physician will see in a day.

Whatever complaints American physicians may have, doctors in those countries feel undercompensated.”

“The blame game between insurers and doctors is ultimately a distraction. Other countries have private health plans and private providers and yet don’t experience nearly the same waste and out-of-control price increases as the US has. The whole system — the prices and how they’re paid — will need to be addressed in the long run. As one landmark health economics paper put it 20 years ago: “It’s the prices, stupid.””

https://www.vox.com/future-perfect/391483/us-health-care-doctors-salary-medical-school

The Netherlands’ Rent Control Disaster

“In July, the Dutch government expanded nationwide rent controls—which had already covered about 80 percent of rental units—to almost all remaining rental properties. Fully 96 percent of Dutch rental housing is now subject to rent caps.
A report from Bloomberg published last week details the results: Owners of rental properties are selling their buildings and getting out of the rental housing market.

The tenants of those units are being forced to try and find one of the few remaining market-rate units or purchase a home in the Netherlands’ hot housing market. In either case, home hunters face spiking prices and limited availability.

These results are what one would expect from rent control. The economic literature is unambiguous that when rent control effectively holds rents below market levels, the result is a shortage of available rental housing.

More honest boosters of rent control will argue that while the policy limits housing supply, it increases stability for tenants. Protected from sudden, unaffordable rent increases, renters are able to stay in their homes for longer.

But in the Netherlands, at least, rent control is having a pro-displacement effect. Tenants who had an affordable rental unit are now being forced to move.

Proponents of rent control like to wave away the problems created by the policy as something that can be fixed with better and/or more sweeping controls of rental housing.

In fact, different rent control designs just produce different problems.

Apply rent control to new construction, and developers build less rental housing. Apply rent control to existing rental housing and landlords sell out to owner-occupiers. Prevent landlords from taking their units off the market, and housing quality deteriorates. (In the long run, this also reduces supply by preventing the redevelopment of existing rental housing.)”

https://reason.com/2024/09/05/the-netherlands-rent-control-disaster/

Healthcare.gov glitches almost ruined the end of open enrollment. Is there a better way?

“In the Netherlands, people who don’t sign up for their universal private coverage during the annual enrollment period are automatically enrolled in a plan and have to pay a premium 20 percent higher than what they would have paid if they signed up voluntarily. The Dutch have achieved 99 percent coverage under such a system, which shares other features with Obamacare (like subsidies and the ban on preexisting conditions).”