Healthcare Credit Card
rePLACE Urban Studio
$15.8 trillion Total U.S. mortgage debt
$790 billion Total amount of annual interest
U.S. mortgage debt • Total U.S. mortgage debt = $15.8 trillion
• Annual interest paid = $790 billion
• Federal expenditure on mortgage interest deduction = $60 billion
U.S. credit card debt • Total U.S. credit card debt = $1 trillion
• $6,900 per individual card holder
• $1,240 annual interest
• Total US healthcare spending = $3.6 trillion
• $10,800 per person
U.S. credit card debt • Total U.S. credit card debt = $1 trillion
• $6,900 per individual card holder
• Annual interest paid = $180 billion
• Potential federal expenditure on interest deduction = $13.7 billion
U.S. consumer healthcare spending • Total household spending = $1 trillion
• Includes out-of-pocket expenses + monthly insurance premiums
• Total US healthcare spending = $3.6 trillion • Includes private business contributions + government spending
• $10,800 per person
Cost of an credit card interest deduction • Assume you paid all of that 3.6 million with a credit card…
• Hypothetical annual interest paid, at 18% APR = $648 billion
• Added to existing credit card interest paid = $828 billion
• Potential federal expenditure on interest deduction = $63 billion
Federal government spending on healthcare • Federal government spending = $1.35 trillion
• $583 billion Medicaid
• $399 billion Medicare and CHIP
• $70 billion Veterans
• $225 billion on tax-related expenditures
• $146 billion = the exclusion from taxable income of employers’
contributions for medical insurance premiums and medical care.
Annual profit of credit card companies 2.2%
• Visa has 61.2% of credit card marketshare
• Visa’s annual profit = $12.08 billion
• $19.7 billion total credit card company profits
• Net revenue = $37.5 billion
11.2%
25.4%
61.2%
• ($17.8 billion in operational expenses) Visa AmEx
Mastercard Discover
Annual profit of health insurance companies • United Health has 14.4% of insurance marketshare
• United Health Group annual profit = $13.8 billion
•
14.1%
$95.8 billion total health insurance company profits
9.2%
59%
7.8% 5.3% 4.9%
UnitedHealth Humana Centene
Mastercard HC Services All others