Administrative costs but I imagine insurance and health care costs for those employees. Lack of affordable/open medical care costs are passed on to the customers.
This is why the Republicans were so against the goverment-payer option for Obamacare. Not “because socialism,” but because about 30 percent of the cost of healthcare in the US is actually the result of the middlemen, i.e. the private insurance companies in control of the entire system and their bureaucratic clusterfucks specifically designed to extract as much money as possible from both the patient and provider. A single payer or government option would reduce or eliminate that.
30 percent.
The entire private insurance industry at this point is just a make-work operation to increase the cost and complexity of health care for the sole purpose of benefiting… the private insurance industry.
There was a time when paperwork and such was defensible.
Now, if carriers had a lick of sense, they’d realize that forms are dirt cheap online; and that it’s drastically less expensive just to pay the claim vs fighting it.
They don’t, of course, because mergers and sole-source pharmacies for “scary” meds, but that’s neither here nor there.
Whole idea of PBMs is wrong, offensive, and has set back my care. Know who should manage my pharmacy benefits, my fucking doctor. Full stop.
It turns out childcare is just a very labor intensive sector due to the amount of adults needed to watch the kids. This means that most of the costs for daycare are already labor:
In fast food, labor is 25% of the total costs. Estimates for day care - it’s, like, more than 70% of total costs.
Given that labor is already a disproportionate amount of the costs, raising salaries a little has a large effect on the increased cost that parents would have to pay.
For some real world numbers, daycare is around 1.3k/month for me. The school does 3 kids to 1 teacher, so that’s a max of 3.9k/month of income per 1 teachers salary. So already, in an ideal world where 100% of what parents pay go directly to the teacher, the max they’d make is 48k/year.
Factor in things like renting the facilities, utility costs, administrative and security staff, taxes, etc. and you quickly start to see why even though it seems like parents are paying a lot, there’s just not that much money to go around.
Yes!!! So many industrialized western nations subsidize child care. I really don’t understand why the US has to be behind the curve with fucking everything, especially with this since we need more kids so badly.
All of the money is going to the CEOs and Investors. Every single time. Every single
Industry. Stagnant wages is what everyone else experiences because every year the ruling class gets a billion (+) dollar bonus.
Probably also rent for the space in most places, whether they are a home-based business with high mortgage costs, renting space from a corporate landlord, or otherwise exposed to market-rate real estate/rents. If the cost of real estate is high, it impacts the entire economy.
And yet the staff are paid as close to minimum wage as possible.
Seriously, where is the money going?
Administrative costs but I imagine insurance and health care costs for those employees. Lack of affordable/open medical care costs are passed on to the customers.
Removed by mod
This is why the Republicans were so against the goverment-payer option for Obamacare. Not “because socialism,” but because about 30 percent of the cost of healthcare in the US is actually the result of the middlemen, i.e. the private insurance companies in control of the entire system and their bureaucratic clusterfucks specifically designed to extract as much money as possible from both the patient and provider. A single payer or government option would reduce or eliminate that.
30 percent.
The entire private insurance industry at this point is just a make-work operation to increase the cost and complexity of health care for the sole purpose of benefiting… the private insurance industry.
There was a time when paperwork and such was defensible.
Now, if carriers had a lick of sense, they’d realize that forms are dirt cheap online; and that it’s drastically less expensive just to pay the claim vs fighting it.
They don’t, of course, because mergers and sole-source pharmacies for “scary” meds, but that’s neither here nor there.
Whole idea of PBMs is wrong, offensive, and has set back my care. Know who should manage my pharmacy benefits, my fucking doctor. Full stop.
You are assuming they get healthcare. Dangerous assumption these days, as the ACA has been carved down.
there’s a great planet money podcast that covers this
It turns out childcare is just a very labor intensive sector due to the amount of adults needed to watch the kids. This means that most of the costs for daycare are already labor:
Given that labor is already a disproportionate amount of the costs, raising salaries a little has a large effect on the increased cost that parents would have to pay.
For some real world numbers, daycare is around 1.3k/month for me. The school does 3 kids to 1 teacher, so that’s a max of 3.9k/month of income per 1 teachers salary. So already, in an ideal world where 100% of what parents pay go directly to the teacher, the max they’d make is 48k/year.
Factor in things like renting the facilities, utility costs, administrative and security staff, taxes, etc. and you quickly start to see why even though it seems like parents are paying a lot, there’s just not that much money to go around.
Yes!!! So many industrialized western nations subsidize child care. I really don’t understand why the US has to be behind the curve with fucking everything, especially with this since we need more kids so badly.
All of the money is going to the CEOs and Investors. Every single time. Every single Industry. Stagnant wages is what everyone else experiences because every year the ruling class gets a billion (+) dollar bonus.
Probably also rent for the space in most places, whether they are a home-based business with high mortgage costs, renting space from a corporate landlord, or otherwise exposed to market-rate real estate/rents. If the cost of real estate is high, it impacts the entire economy.