Report: 5 Percent of People Account for Half of U.S. Health Care Spending

About 5 percent of the population is responsible for almost half of all health care spending in the United States and for rising premium rates, according to a new report from the National Institute for Health Care Management Foundation.

U.S. health care spending has sharply increased over the past few years. Between 2005 and 2009, national health care spending rose by 23 percent from $2 billion to $2.5 billion, according to the NIHCM Foundation, a nonprofit, nonpartisan organization focused on health care. A foundation report that reviewed the 2008 Medical Expenditure Panel Survey found health care spending was concentrated among a small group of high-cost patients.

The report stated about half of the U.S. population accounted for only 3.1 percent of all expenditures. But 10 percent of the population hogged 63.6 percent of all health spending, the survey found. The top 5 percent of the population accounted for 47.5 percent of all spending, and the top 1 percent accounted for 20.2 percent.

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It looks like most of this could be prevented:

Nearly half of people in the top 5 percent of health care spending had high blood pressure; a third had high cholesterol; and a quarter had diabetes.

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Real bullets were fired at Wild West show

Real bullets were fired at a Wild West shootout re-enactment in South Dakota that sent a South Connellsville optometrist, John Ellis, and two others to the hospital with gunshot-related injuries.

Investigators found live .45-caliber rounds and spent shells at the Dakota Wild Bunch Reinactors’ June 17 show in Hill City, S.D., said Pennington County Sheriff Kevin Thom.

The rounds were fired by re-enactor Paul Doering, 49, of Somerset, S.D., Sheriff Thom said.

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Drug

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Eric Cantor’s glaring conflict of interest

When Eric Cantor shut down debt ceiling negotiations last week, it did more than just rekindle fears that the U.S. government might soon default on its debt obligations — it also brought him closer to reaping a small financial windfall from his investment in a mutual fund whose performance is directly affected by debt ceiling brinkmanship.

Last year the Wall Street Journal reported that Cantor, the No. 2 Republican in the House, had between $1,000 and $15,000 invested in ProShares Trust Ultrashort 20+ Year Treasury EFT. The fund aggressively “shorts” long-term U.S. Treasury bonds, meaning that it performs well when U.S. debt is undesirable. (A short is when the trader hopes to profit from the decline in the value of an asset.)

According to his latest financial disclosure statement, which covers the year 2010 and has been publicly available since this spring, Cantor still has up to $15,000 in the same fund.

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