A Linked Overview of the Affordable Health Care Problem in the United States.
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1. The Sovereign Power of an Informed Electorate.
Without an informed electorate, representative government in the United States cannot exist.
In the United States, representative power is the delegated
SOVEREIGN POWER of the American People. The Founders recognized this in the first words of the Constitution "WE, THE PEOPLE of the United States . . . ." They recognized this in Article I of the Constitution, which begins: "All legislative Powers herein granted shall be invested in a Congress of the United States; in Article II, which delegates executive Power; and in Article III, which delegates judicial Power. Note that in each case, the word "Power" is capitalized in the Constituion.In Article IV, the founders said "The United States shall guarantee to every state in this Union a Republican [representative] Form of Government . . . ." To perpetuate representative government in the United States, the SOVEREIGN POWER of the American is re-delegated at periodic intervals through the election or re-election of individuals to legislative and executive positions, and with certain exceptions, to judicial positions.
The "engine" of representative government in the United States is therefore the
periodic election of representatives to that government by a well-informed electorate. Consequently the fuel powering the engine of representative government is INFORMATION. This includes information on the problems and issues confronting the country, and it includes information providing an early warning of dangers or threats, both internal and external, to the Republic and to the American People.The critical role of information in the perpetuation of representative government was recognized by the Founders in the First Amendment to the Constitution. And up until the Rehnquist Court, the critical role of information needed to perpetuate representative goverment was recognized again and again in a number Supreme Court decisions.
Some of these decisions date back to the nineteenth century. But most of them appeared between 1900 and 1980, prior to the packing of the Federal courts with judges of a particular judicial temperament. In a number of Supreme Court cases on the Freedom of Speech clause to the First Amendment, the Court has held that Freedom of Speech is a COGNATE RIGHT inextricably coupled to the Freedom of the Press -- you cannot have one without the other. The Court has also held that the Freedom of Speech and the Freedom of the the Press are FUNDAMENTAL PERSONAL RIGHTS. For the Freedom of Speech is not just the freedom of American citizens to freely speak, it is also the freedom of those individual citizens to hear free speech widely-disseminated by the broadcast mechanisms of the time. For how else could the American People know of and understand the problems and issues confronting the United States at a particular time? How could the American People be forewarned of internal and external threats and dangers to their country?
2. The Destruction of the Free Press in the United States
Without an informed electorate, representative government in the United States cannot exist.
The most privileged form of information in a country with a representative government is the information provided to the people of the country on the activities of its elected representatives. In the United States, national problems and national issues are considered by our representatives to Congress in the Senate and in the House of Representatives. Therefore the news of Congressional activities in dealing with national problems and national issues is the most privileged form of information in these United States. It is the principal, but not the only reason why the American people have an absolute right to receive free speech through a free and
uncensored press. .Over the past several months, I have been been analyzing the lack of newspaper coverage on environmental and health care issues that have been before the U.S. Congress from 1995 to the year 2000. For the reasons stated above, media coverage of our legislators and important legislative matters in the U.S. House and Senate is essential to continued existence of representative government in the United States. Without this information we no longer have a representative government.
The Mainstream Media today is CENSORING the news of the activities that make us a representative government. For the period 1998 to 2000, I was able to identify 61 roll call
votes in the House and Senate on environmental matters. These votes show that about 80% of the Democrats and 13% of the Republicans in Congress support environmental measures while 87% of the Republicans and about 20% of the Democrats oppose such measures. For the six years from January 1995 to November 2000, I was able to identify 80 roll call votes or proposed laws that would have (1) provided strong anti-fraud legislation to combat fraud in our health care system, (2) provided lower-priced prescription drugs for all Americans, and (3) that would have given the American people a strong patients' bill of rights. Only about three or four Republican Senators and about 20 Republican House members supported the Democrats on these health care measures.Over the last thirty years, powerful private interests in the United States have destroyed the right of the American People to a Free Press. This is not accidental, for these private interests realized that truly reprentative government in the United States and the Sovereign Power of an informed American People representing their will through elections is dangerous to private special interests. It threatens the extent of private power in this country and if left untouched, it would erode the exercise of this power. These private special interests realized years ago -- most probably during the New Deal years of the 1930's -- that the transfer of real power from the People to private interests could only be accomplished through a long-term propaganda effort denigrating the only viable alternative to untrammeled private power -- the power of governments at all levels to protect the rights of private citizens.
The destruction of the right of the American People to a Free Press not only violates our Constitutional rights, it is also a direct violation of the Sherman Anti-Trust Act (see
the Associated Press v. United States, 326 US 1 (1945) forbidding private censorship by newspaper monopolies, and Red Lion v. FCC 395 US 367 (1969) for forbiddidng private censorship by radio and TV monopolies).When in political power, the proponents of private power misused and abused the powers of government to discredit representative government across the board. When out of political power, the proponents of private power continued their attack, with the enthusiastic cooperation of those who control our Mainstream Media.
The Most Vulnerable Aspect of Representative Government
The most vital, and at the same time the
most vulnerable aspect of representative government in the United States, is an informed electorate. By dumbing down and distracting this engine of perpetual representive government, power is transferred from the American People to the powerful and the privileged. Through their control of the Mainstream Media, these powerful private interests quietly began their long-term propaganda campaign just after the Second World War. Learning from the Big Lie and the disinformation campaigns of Fascism and Communism, these powerful private interests slowly poisoned the body politic with anti-democratic and anti-republican doctines opposed to representative government.In the past, the editorial stance of a newspaper or chain of newspapers could be expected to present the economic and political views of its ownership. On the other hand, the "news" section of that same newspaper was considered objective and free from bias
. And here is where the subversion began. Very slowly and very quietly the "news" was used to convey another message -- all government is evil, all government is incompetent, government is the problem, not the solution. The attack on representative government was just as subtle. The objective of this attack was to convince the American People there is no difference between the political parties vying for legislative and executive power through representative government. We are told all politicians are compromising phonies. We are told most politicians are dishonest. Yet all of the people's representatives in governments at all levels in this country are -- politicians. Then there is the oft-repeated claim that representative government and voting is irrelevant. If there is no difference between the parties, why vote? If we cannot effect change through an election, why vote? If we the people cannot have our grievances addressed through the vote, why vote?Together with the anti-democratic and anti-republican messages of the propaganda campaign, it was also necessary for the media to provide major distractions to politics and the problems of the country through sports and entertainment. Why bother with informing yourself and voting when you can watch a football, basketball, or baseball game? Here the winners and the losers are distinctly identified -- and someone wins and someone loses. Why bother with informing yourself and voting when there is the latest movie or TV series to see? Here, as in the case of sports, almost instant gratification is possible.
But above all, the media must not address the nation's problems and issues in a way that is understandable to the American people. Fragment the reporting of problems, issues and threats to the United States into pieces, and then obfuscate the reporting of those pieces. Better still, simply do not report on these things at all -- just CENSOR them out of the news. Who will know the difference?
If you were to ask most Americans about the legislative battles going on in the Congress since 1995 on health, safety and evironmental regulations, or that swirled around the Democratic attempts during the same time to legislate an affordable health care system, they would look at you as if you had lost your mind. What is the world are you talking about? There were no battles in Congress on these issues, for if there had been, the newspapers, radio, and TV would have reported it.
It was not reported, therefore it did not happen. For the powerful private interests running this country have gone far beyond the totalitarianism of George Orwell's 1984 -- if news of something is not disseminated, it simply doesn't exist. There is no need for someone to go through the daily newspaper correcting the news items the regime wishes to conceal -- flushing the previous news down a memory hole. By preventing in the first place the publication of news on important problems, issues and threats confronting the American people, private power can consolidate its gains, and plan its next steps to a corporatist state.
3. Censoring the News on Affordable Health Care
At the present time, the American People spend about one dollar out of every seven dollars of our Gross Domestic Product on health care. This is double the comparable per capita health care costs of all other First World countries.
Current information on the cost of the U.S. health care system is easily available through the Internet to any newspaper, radio station or TV station twenty-four hours a day, seven days a week. This information has been published for years and provides details on American and foreign health care costs.
Yet the Mainstream Media carefully conceals this vital information on America's health care costs from the American people. It is as if it were highly classified military information and the American People had no right to receive this information. Why? Because this information will show that while the United States has the most expensive health care system in the World, over 15 per cent of our population is uninsured. Because this information will also show the United States ranks far behind the other major industrialized nations of the World in various health care measurements. And finally, because this information will show that Americans are paying two, three, four, and five times the costs of identical prescription drugs than citizens of foreign countries. But thanks to the collusion between the Mainstream and the Republican Party, these fundamental facts of American life are concealed from most Americans.
Since 1995, the Democrats in the House and Senate have made repeated attempts, over eighty by the latest count, to get affordable health care legislation passed in the
Congress. Almost all of these attempts have been turned back by Republican majorities in both Houses. Since 1995, the Mainstream Media has successfully CENSORED this kind of news from the nation's newspapers and from radio and TV news reports.4. What Does U.S. Health Care Cost?
How much does U.S. health care cost, and who is actually paying for it? The answer to the first of these two questions can be easily found in Table 115 of the HHS Handbook, Health, United States, 2000.
According to Table 115, the total health care expenditures in the United States in 1998 amounted to $1.149 trillion dollars. Divided by the population of the United States, this amounts to $4,094 per citizen (our per capita health care costs). This was 13.5 ercent of our Gross Domestic Product in 1998, thus we paid slightly more than one dollar in seven of the GDP for health care costs. In 1997, the per capita cost was $3,912 -- from 1997 to 1998 our health care costs per citizen increased by $182 (see Table 114).
The apparent answer to the second question -- who is actually paying for the U.S. health care system -- is also found in Table 115 under the heading the source of funds for National Health Expenditures. Here we learn that $626.4 billion came from private funds and $522.7 billion came from public funds. However, if you look more closely at a detailed breakdown of source of the funds for National Health Expenditures in you learn that most of these funds are coming out of the pockets of each citizen of the United States, either as a health care consumer or as a
person paying local, state, and federal taxes. .In point of fact, over 95.5 percent of our National Health Care Expenditures for each year from 1960 to 1998, came from the private citizens of the United States. Out-of-pocket health costs to the consumer in 1998 were $199.5 billion, private health insurance premiums cost $375.02 billion, and public federal and state health care costs were $522.7
billion. For the American taxpayer pays for Medicare, Medicaid and the health care of the people in our Armed Forces, active and retired. The American taxpayer also pays for the treatment of the uninsured in our local and state public hospitals, and has been doing so for years.Adding the known health costs, we arrive at a sum of $1.097 trillion dollars in 1998, leaving about $51 billion dollars (4.5%) coming from private sources.
The Private U.S. citizen, both as a health care consumer and as a local, state, and federal taxpayer, pays for 95.5 percent of the U.S. health care bill, each year.
Of the federal and state tax dollars spent in 1998, $216.6 billion was in Medicare and $170.6 billion in Medicaid, for a total of $387.2 billion.
5. How Do U.S. Per Capita Health Costs Compare with those of Other First World Countries
The last year for which we have comparable per capita health care costs for foreign countries is 1997. In that year, the average per capita health costs for 21 First World nations, excluding the United States,
was $1,757 . Every one of these countries has a national health care system. This means that all of the people in each of those countries were covered by a medical care system. By any measurement of health care -- infant mortality, lifespan, etc., each of these countries meets or exceeds the comparable U.S. health care measurement. [AHC05b] Yet the 1997 per capita cost in the U.S. was $3925, 2.3 times as much. In other words, the average per capita health care costs in those 21 countries was 44.8% of U.S. per capita costs, less than one-half as much. Moreover, from 1996 to 1997, the average annual rate of cost growth in the 21 countries was 3.1%; in the United States the annual rate of cost growth was 3.67%.In 1997, the United States spent $1.088 trillion dollars on health care. If we had had the per capita cost of $1,757, our total health care bill would have been $488 billion dollars, $599.5 billion dollars less than we actually paid.
If U.S. per capita health costs in 1997 had been the same as as the average for 21 First World countries -- $1,757 -- our total health care bill would have been $488 billion dollars, $599.5 billion dollars less than we actually paid.
6. The Uninsured and the Insured
Census data reported in March 2000 shows that 42.6 million Americans, 15.5% of our population, were without health insurance in
1999. The state with the highest percentages of uninsured in its populations in 1999 was Texas with 24.1 percent of the state's population uninsured, followed by the states of Arizona, New Mexico, California, and Louisiana.In 1999, 84.5 percent of the American population -- about 231.5 million people -- had health insurance. Of these, 194.6 Americans were covered by premiums paid by families or individuals to private health insurance companies. 66.2 million Americans had government insurance -- (36.1 million - Medicare, 27.9 million Medicaid, and 8.5 million military, active and retired). About 30 million Americans with government insurance also paid premiums to private insurance companies for supplemental health insurance.
The 42.6 million uninsured in the United States are treated in local public hospitals, with all costs for this treatment paid for by the local taxpayers in the town, city or county. Essentially, the rest of the U.S. health care system is a private system. With the exception of 8.53 million active duty or retired military personnel receiving treatment from service or VA hospitals, the remaining Americans obtain their health care (drugs, medical treatment, hospitalization) from private providers. This includes the people on Medicare and Medicaid, and people in the Federal health care plans.
Health Care Cost Growth for the 195 Million Insured Americans
Let us look more closely at the largest health care market in the United States -- the 231.5 million Americans covered by private health insurance. According to the 1998 figures, these Americans paid out about $570 billion dollars for out-of-pocket health costs ($199.5 billion) and for health insurance premiums ($375.02 billion).
A November 2000 study published in the journal Health Affairs, and reported on by the New York Times on November 14th, states that the cost growth of health insurance premiums averaged about 2 percent a year from 1994 to 1998, less than the cost of inflation. In 1999, health insurance premiums rose an average of 8.3 pecent for all businesses. For larger businesses with 200 or more workers the health insurance premiums were 7.5 percent, indicating a much larger cost growth in premiums for the hundreds of thousands of smaller businesses.
Cost growth in health insurance premiums.
In 1998, private health insurance premiums cost $375.02 billion in current 1998 dollars. One percent of this is $3.75 billion, therefore an increase of about 8 percent in health insurance premiums amounts to about a $30 billion dollar increase in just one year in health insurance premiums, alone.Prescription drug costs accounted for 44 percent of the increase, doctors' services 32 percent, outpatient health care 21 percent, and inpatient hospital care 3 percent.
We have been paying the highest health care costs in the World, yet over 15 percent of our people are without health insurance. Those who do have health insurance are paying more and more for less and less. Doctors in the United States are either leaving medical practice or are joining together in unions to fight the HMOs and the private health insurance companies in an effort to provide good and affordable health care in the United States.
7. The Highest Prescription Drug Costs in the World
Prescription drug costs for the American taxpayer almost doubled from 1993 to 1998. In 1993, the cost of prescription drugs was slightly over $50 billion dollars, by 1998, the cost had increased to over $93 billion dollars. The annual percentage increase in prescription drug costs was also increasing. From 1992 to 1993, the rate of increase was 8.7%. From 1997 to 1998 the
rate of increase was 18.4%.The American taxpayer continues to pay over 50 percent of the R&D dollars spent on health care research in the United States, and close to 100 percent of the dollars spent on the development of drugs for
AIDS and cancer.. Yet the American taxpayer as a health care consumer receives no deduction in the cost of the prescription drugs developed with their tax dollars. Since 1995, several attempts have been made by the Democrats in Congress to correct this problem, but the Republican majorities in the House and Senate have turned back these efforts, which of course, were not reported in the nation's media.As is the case with so many other necessary commodities in these United States -- water, food, electricity, and petroleum products -- the supply and pricing system for prescription drugs is highly complex and highly confusing. There are at least SIX separate prices or price ranges for all prescription drugs sold in this country, including four separate prices or price ranges for the "Most Favored Customers" of the pharmaceutical industry. Layered on top of these prices are the myriad quantitites and dosage levels that are
available. This confusion is not accidental. When you wish to deny the people of a country the information they need to understand something, you create and throw in horizontal and vertical barriers to such an understanding, and proliferate these barriers until only the "insiders" know what is going on.The American People are not stupid, they are uninformed. And this is deliberate. How can you tell if you are paying too much for something? First you have the know what price you are paying, then you have to know what price other people are paying for exactly the
same thing.So it is absolutely essential to deny this kind of information to the American people. It is also critical to deny information on the prices of these same prescription drugs in foreign countries. In an effort to understand what is going on, we have prepared a price comparison spreadsheet containing a list of prescription drugs showing the different prices for these drugs in the
United States and in Canada and Mexico. Even here we have had to simplify because we simply lack the information needed to reconstruct the four separate prices and the price ranges the pharmaceutical industry has established for its "Most Favored" customers.In March 1996 and again in January 1997, Democrats in the House of Representatives introduced bills, HR.3059 and HR.183, to direct the Secretary of Health and Human Service to prepare and publish a guide to prescription drug prices in the United States study. Both bills were killed in Republican-controlled sub-committees of the House.
Why did the Democrats think a guide to prescription drug prices was necessary and why did the Republicans kill both bills? We Americans pay more, and in fact, pay much more for prescription drugs than any other country in the World. An October 1999 study by House Democrats shows that the Consumer Price Index, which measures inflation, rose 99% from 1981 to 1999. In short, by the end of those eighteen years, what cost $100 in 1981 cost $199 dollars in 1999 -- a doubling of real dollar costs. During this same period of time, prescription drug prices increased by 306 percent, rising by 18.4 percent in 1999 alone. Thus the prescription drug that cost $100 in 1981 cost over $400 dollars in 1999.
The 1999 Democratic study also showed that we Americans were paying 49% more for prescription drugs than Italy, almost twice as much. We were paying 43% more than France, 36% more than Canada, 35% more than the United Kingdom, 32% more than Sweden, and 29% more than Germany. This was before the large prescription drug price increases of 1999 mentioned above went into effect.
The
subsidized pharmaceutical drug industry of the United States and the Republican Party know that if information comparing prices in this country with those overseas received widespread circulation, the American People would demand price reductions. Hence the instructions to the Mainstream Media to CENSOR this kind of information out of newspapers, radio and TV.8. Massive Fraud Throughout the Entire U.S. Health Care Industry
We are also paying a massive hidden price in our health care system for
criminal fraud. In 1995, our total health care expenditures was $993 billion dollars (in current 1995 dollars). In a press conference in October 1995, Attorney General Reno announced that 1995 estimates of health care fraud in the U.S. health care system was about $100 billion dollars a year, slightly more than ten percent of the entire cost of the health care system.So American individuals and American families have been paying about 95.5 percent of national health care expenditures since
1960. And the Attorney General tells us in October 1995 that more than ten percent of this money is defrauded from the American People. In that same press conference, Reno said that the Republicans in Congress not only opposed the strict enforcement of laws on fraud in our medical care system, they had actually written laws that would facilitate fraud.Highly important news? Yes. Did it receive extensive coverage in the nation's news? No. In fact, if a Democratic Senator had not published the transcript of the news conference in the Congressional Record, we would not be writing about
it today. Preceding the press conference transcript in the Congressional Record was a letter from the Inspector General of the Department of Health and Human Services. The letter contained a detailed analysis of a Republican bill supposedly aimed at curbing health care fraud but which in effect actually curbed U.S. law enforcement efforts against those defrauding the American people. The Mainstream Media also failed to cover this letter in the news.The three primary targets of fraud in the U.S. health care are (1) the 195 million people with health insurance, (2) the Medicare program, and (3) the Medicaid program. Actually, the 195 million people with health insurance are targeted in two ways. First, as the payer of out-of-pocket medical costs and health insurance premiums. Second, as taxpayers paying local, state, and Federal taxes for the medical care of the uninsured in the United States and the people on Medicare and Medicaid.
Together Medicare and Medicaid cover about 64 million Americans. Estimates of the amount of fraud in Medicare alone is about 9.713 percent
each year. Assuming that fraud rate is correct, we are talking over $16 billion in 1994, $18 billion in 1995, over $19 billion in 1996, 20.5 billion dollars in 1997, and over $21 billion in 1998. Fraud is much greater in the Medicaid program. In the Federal-State Medicaid program, a number of the states do not even check the background of Medicaid providers for criminal activity, or for that matter, for a fixed and valid business address.Traveling groups of dentists in Texas target minority children covered under Medicaid and provide them with the most expensive dental procedures such a ceramic caps on teeth when much cheaper dental care would have taken care of the dental problems. The Texas taxpayer and the Federal taxpayer pick up the bill. In Medicaid the estimates of fraud are about 10.96 percent per year. Assuming this fraud rate is correct, that's almost $15 billion in 1994; $16 billion in 1995, almost $17 billion in 1996, $17.5 billion in 1997 and almost $19 billion in 1998.
But what about fraud in the largest health care market? This is the $762 billion dollars spent in 1998 on out-of-pocket health costs and for private health insurance premiums, and for all those local, state, and federal taxes being paid for the medical treatment of the uninsured. The percentage of criminal fraud in this market has not been measured, but a very low estimate would be about 9.97 percent -- so we are talking about almost $76 billion dollars of FRAUD in this one market alone in 1998.
When we add all of these numbers together for the single year of 1998 -- $21 billion in Medicare, almost $19 billion in Medicaid, and $76 billion in the private health insurance market -- there was probably almost $116 billion dollars in criminal fraud in the entire U.S. health care industry in that year.
The Cost of Medical Care Fraud in 1998 alone -- about $116 billion dollars!
9. Patients' Bill of Rights
For the last
six years, almost all of the Democrats in the U.S. Congress have been fighting for a STRONG Patients' Bill of Rights for all Americans. Beginning in August 1999, the Democrats in the House were joined by a small rump group of Republicans in trying to get a STRONG bill passed. This efforts were defeated by Republican majorities in the House and Senate.Below is a summary of the features of a STRONG Patients' Bill of Rights extracted from remarks in the Congressional Record and from the laws themselves that the Mainstream Media, for some reason, has TOTALLY IGNORED over the past five years. Some of these features are from 1995, others from 1996 and 1997, still others were incorporated during the UNREPORTED legislative battles in 1998, 1999, and the months leading up to November 2000.
A STRONG Patients' Bill of Rights
A. Decisions about medical care should be made by doctors and patients.
B. All persons in the U.S. health care system have:
1. The right to be treated by properly-trained medical personnel
2. The right to be informed of all of their medical options--not just the cheapest medical options approved by the HMOs and health plans.
3. The right to go to an emergency room and to be treated there.
4. The right to see a medical specialist when they need to.
5. The right to take their children to a pediatric specialist when they need to.
6. The right NOT to be denied medical treatment without an initial physical examination.
7. The right NOT to be denied medical treatment because of ill-defined criteria established by the HMO or health insurer.
8. The right of transportability of medical care. A patient being treated for an illness or a pregnant woman has the right to stay with their own doctor, even if an employer changes health plans.
9. The right of medical accountability. This is the right to hold HMOs and health insurers accountable for their decisions. If an HMO or insurer refuses to cover a prescription or procedure, patients have a right to immediately appeal that decision to an independent third-party.
10. The right to sue. If a patient suffers serious harm as a result of an HMO or health insurer's decision to delay or deny needed care, that patient has the right to sue their HMO or insurer.
11. The right NOT to be treated by health providers who are offered incentives to recommend cheap medical options to save the HMO or insurer money, particularly if the disallowed options are actually medically necessary.
C. All health providers in the U.S. health care system have:
1. The right NOT to be gagged by HMOs and health insurers or to be threatened with firing if they recommend medical treatments beyond those approved by the HMO or health insurer.
2. The right NOT to be threatened with punitive actions if they inform a hospital, HMO or health insurer of dangerous conditions in medical treatment programs prescribed by those organizations.
D. All HMOs, health insurers or other entities providing prescription drug benefits which are limited to drugs included in a formulary, i.e., a list of accepted drugs, are required to:
1. Insure that participating doctors and pharmacists are involved in developing that formulary.
2. Disclose to providers, and upon request, disclose to the HMO and other health plan members full information on formulary restrictions.
3. Provide for exceptions to the formulary restrictions if a non-formulary alternative is medically needed.
10. The Numbers Still Do Not Add Up
But even with the highest prescription drug costs in the Worlld, and a health care system riddled with fraud, we still cannot determine why U.S. per capita health care costs are still twice as much as the average of 21 other First World countries. In 1997, the United States spent $1.088 trillion dollars on health care. If we had had the per capita cost of $1,757, our total health care bill would have been $488 billion dollars, $599.5 billion dollars less than we actually paid.
The estimates of the total fraud in the U.S. health care system over the last few years are slightly more than $110 billion dollars. In 1998, the total cost of prescription drugs in the United States was $93.8 billion. If we cut this approximately in half to the international price, we would have savings of no more than $50 billion dollars. Even if we assume a total cost of $150 billion dollars lost through fraud and overpriced prescription drugs, this is still only 25% of the $599.5 billion dollar difference between our actual health costs and the international average.