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America's "Healthcare" System Is Now a Structured Financial Skim/Scam

July 2, 2025

"Healthcare" grift, graft, fraud and financialized skims / scams will bankrupt the nation.


I've been writing about America's healthcare system for 18 years, emphasizing two enduring themes: 1) our lifestyle is unhealthy, with predictable consequences and 2) healthcare as it is currently configured will bankrupt the nation all by itself.

This recent article on how having a baby without complications now costs over $44,000 adds a third theme: the tragi-comic insanity and absurdity of the "healthcare" system that has been normalized, as if this is the only possible way to organize healthcare:

"And They Wonder Why The Birth Rate Is Declining": A Mother Went Viral For Revealing The Costs Of Being Pregnant In America:

Lastly, Kayla reveals that her baby received a bill, too, which added up to $12,761.30 without insurance. For their family of five now, the cost of insurance per month is $2,500 -- a nearly $400 increase from when they were just a family of four. "We're still waiting for him to process on our insurance," she explains, "so, for now, this is the cost without it."

One user said, "America's healthcare system is a joke... how does the newborn have a $12k bill?"


It's more than a joke--it's travesty of a mockery of a sham of a system that actually improves health. There's an even darker side of the picture--the takeover of the system by financiers and fraudsters--which truth be told is a redundancy.

We can now add a fourth theme: stripped of purposeful opacity, America's "healthcare" system is nothing more than a structured financial skim/scam. Before we dig into that, here are a few of the dozens of posts I've written on "healthcare" since 2008:

U.S. Lifestyle + "Healthcare" = Bankruptcy (June 19, 2008)

The "Impossible" Healthcare Solution: Go Back to Cash (July 29, 2009)

Why "Healthcare Reform" Is Not Reform, Part II (December 29, 2009)

Sickcare Will Bankrupt the Nation--And Soon (March 21, 2011)

How Healthcare Became Sickcare (March 18, 2022)

Let's start with what childbirth cost back when healthcare was paid in cash. Here are the costs of childbirth in 1952 at one of the finest hospitals on the West Coast, The Santa Monica Hospital: $30:



According to the BLS Inflation Calculator, $1 in 1952 is $12.13 today, so adjusted for inflation, the $30 fee to deliver a baby would be $363 today. Here are maternity rates from 1952:



A private room was $19, or $230 in today's currency. OK, so we have fancier equipment now, more staff, etc., but really--does that explain what once cost less than $1,000 in today's money--paid in cash, no insurance--now costs $44,000? No. Here's why: structured financial skims/scams.

Dutch Rojas (@DutchRojas) is a go-to source for explaining the opaque way "healthcare" skims / scams siphon off hundreds of billions of taxpayer dollars. Consider these X posts:

Why is healthcare expensive?
You go to your doctor.
Same building, same service.
But now it's 3x the price, because they sold to a health system.

The secret?
A "facility fee" was added.
Medicare and commercial payers just hand it over.

It's not for better care.
It's for ownership.

Every consolidation deal is a bet against the patient and you're footing the bill.

And the politicians love every bit of it...


Provider Taxes: The Most Elegant Grift in American Healthcare
It's not a tax.

It's a laundering operation.

Here's how it works:


North Carolina's 'nonprofit' health systems are running a $40+ billion hedge fund operation disguised as healthcare.
They're extracting hundreds of millions in tax exemptions while paying CEOs tens of millions.

This is the largest wealth transfer scheme in the American healthcare system.


This doesn't even include outright Medicare/Medicaid fraud, overbilling, unnecessary tests, medications and procedures, and a nearly endless menu of other enrichment schemes passed off as "care." These billions go to the "owners," not the frontline healthcare providers / workers.

Lastly, let's consider a few charts. Here is my 2008 diagram of the building blocks of an unhealthy lifestyle:



The cost of insurance continues rising, becoming ever more burdensome and ever more unaffordable:



Yes, the number of retirees is expanding, but this parabolic rise in Medicare costs far exceeds the rise in the number of retirees.



The same can be said of Medicaid.



"Healthcare" grift, graft, fraud and financialized skims / scams will bankrupt the nation. Thanks to the purposeful opacity of the complex funding streams, we can't even figure out what is actually "care" and what's just another skim / scam.

Our starting point should always be: this is not the only way we could organize "healthcare." We could have a rational, transparent, competitive and affordable system. But to get that, we first have to completely dismantle the current system, and everyone skimming billions will fight with all their billions in campaign contributions to stop that from ever happening. As a result, the nation will be bankrupted by greed.

Check out my new book Ultra-Processed Life and my new fiction/novels page.


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My recent books:

Disclosure: As an Amazon Associate I earn from qualifying purchases originated via links to Amazon products on this site.

Ultra-Processed Life
print $16, (Kindle $7.95, Hardcover $20 (129 pages, 2025) Read the Introduction and first chapter for free (PDF)

The Mythology of Progress, Anti-Progress and a Mythology for the 21st Century
print $16, (Kindle $6.95, Hardcover $24 (215 pages, 2024) Read the Introduction and first chapter for free (PDF)

Self-Reliance in the 21st Century print $15, (Kindle $6.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF)

When You Can't Go On: Burnout, Reckoning and Renewal $15 print, $6.95 Kindle ebook; audiobook Read the first section for free (PDF)

Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $6.95, print $16, audiobook) Read Chapter One for free (PDF).

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $6.95, print $15, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $3.95, print $12, audiobook) Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake (Novel) $3.95 Kindle, $12 print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 Kindle, $15 print)
Read the first section for free


Become a $3/month patron of my work via patreon.com.

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Ultra-Processed Life print $16, (Kindle $7.95, Hardcover $20 (129 pages, 2025)


Ultra-Processed Life is my term for everything that is analogous to ultra-processed snacks: attractively marketed, instantly alluring, easy to consume, addictive by design, tasty in the moment but harmful over time, its origins a black box of unknown processes, the brightly colored product bearing no resemblance to the real-world ingredients, an idealized form of what is inherently imperfect, untethered from the natural world or the future, disconnected not just from the consequences of our consuming the snack but disconnected from the consequences unleashed by those consequences.

This book recounts my journey of discovery of how our everyday realm has drifted away from the foundations of human life and happiness without our noticing: the everyday realm is the river and we're the fish oblivious of the water. This book charts my exploration of what's so normal we don't even see it for what it is.

As with many others, the catalyst for my exploration was a life-threatening medical crisis that did not have a specific cause.

This led me to wonder if our entire way of life is like an ultra-processed snack: tasty but not healthy, edible but stripped of the nutrients we need to be healthy, addictive by design.

Read the Introduction and first chapter



The Mythology of Progress, Anti-Progress and a Mythology for the 21st Century print $20, (Kindle $9.95, Hardcover $24 (215 pages, 2024) audiobook, Read the Introduction and first chapter for free (PDF)

What if growth--and policies to accelerate growth--are no longer working because our fix for every problem--growth at any cost--is failing? We're told Progress is inevitable as a result of technology, but everyday life is getting harder, not easier--the opposite of Progress, what I call Anti-Progress.

What if the real source of the unraveling is far deeper than economics or politics? What if the problem is what we see as the inevitable destiny of humanity--Progress--is actually a modern mythology, disconnected from the real-world consequences of growth for growth's sake?

We indignantly reject that Progress is a mythology, but our need for mythology hasn't gone away because we've mastered technology; we've created a modern mythology of technology that is heedless of its own consequences.

To truly progress, we need a new mythology aligned to 21st century realities. That's the goal of this book.

Read the Introduction and first chapter for free



Recent entries:

America's "HealthCare" System Is Now a Structured Financial Skim/Scam July 2, 2025

The No-Win Bubble "Wealth Effect": Either Way We Lose June 30, 2025

The Economy--and its Future--in Four Charts June 27, 2025

Hollowed Out June 25, 2025

Is Life Now a Snack? June 24, 2025

Meta-Thoughts on the War June 23, 2025

How Housing Bubble #2 Bursts June 18, 2025

Good News! AI Can Do More BS Work June 16, 2025

And So It Begins June 13, 2025

Now That the Parasites Have Consumed the Host.... June 11, 2025

The Miracles of Moderate Exercise June 9, 2025

The Ratchet Effect: Easy to Spend More, Spending Less Triggers Collapse June 3, 2025

What AI Can't Do Faster, Better, or Cheaper Than Humans June 2, 2025


January 2025 posts         February 2025 posts         March 2025 posts         April 2025 posts         May 2025 posts         June 2025 posts

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Extra-Special Bonus Aphorisms:

"There is no security on this earth; there is only opportunity."
(Douglas MacArthur)

"We are what we repeatedly do." (Aristotle)

"Do the thing and you shall have the power." (Ralph Waldo Emerson)

"Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction." (E.F. Schumacher, via Tom R.)

"He who will not risk cannot win." (John Paul Jones)

"When we drink coffee, ideas march in like the army." (Honore de Balzac)

"Progress is not possible without deviation." (Frank Zappa, via Richard Metzger)

"Victory favors those who take pains." (amat victoria curam)

"The man who has a garden and a library has everything." (Cicero, via Lee Bentley)

"A healthy homecooked family meal and a home garden are revolutionary acts." (CHS)

"Do you know what amazes me more than anything else? The impotence of force to organize anything." (Napoleon Bonaparte)

"The way of the Tao is reversal" Or "Reversal is the movement of Tao." (Lao Tzu)

"Chance favours the prepared mind." (Louis Pasteur)

"Success consists of going from failure to failure without loss of enthusiasm." (Winston Churchill)

"Where there is ruin, there is hope for treasures." (Rumi)

"The realm of gratitude is boundless." (CHS, 11/25/15)

"History doesn't have a reverse gear." (CHS, 12/22/15)

Smith's Law of Conservation of Risk: Every sustained action has more than one consequence. Some consequences will appear positive for a time before revealing their destructive nature. Some consequences will be intended, some will not. Some will be foreseeable, some will not. Some will be controllable, some will not. Those that are unforeseen and uncontrollable will trigger waves of other unforeseen and uncontrollable consequences. (July 8, 2014)(thanks to Lew G. for retitling the idea.)

Smith's Neofeudalism Principle #1: If the citizenry cannot replace a kleptocratic authoritarian government and/or limit the power of the financial Aristocracy at the ballot box, the nation is a democracy in name only.

The Smith Corollary to Metcalfe's Law (The Network Effect): the value of the network is created not just by the number of connected devices/users but by the value of the information and knowledge shared by users in sub-networks and in the entire network. (CHS, 4/6/16)

My Credo of Liberation: I no longer care if the power centers of our society--the distant, fortified castles of our financial feudal system--are changed by my actions, for I am liberated by the act of resistance. I am no longer complicit in perpetuating fraudulent feudalism and the pathology of concentrated power. I no longer covet signifiers of membership in the Upper Caste that serves the plutocracy. I am liberated from self-destructive consumerist-State financialization and the delusion that debt servitude and obedience to sociopathological Elites serve my self-interests. (Thank you, Klaus-Peter L., for reminding me)

"We've become a culture of excuses rather than solutions: solutions always require sustained effort and discipline." (CHS 4/9/16)

"Fraud as a way of life caters an extravagant banquet of consequences." (CHS 4/14/16)

"Creativity = problem solving = value creation." (CHS 6/4/16)

"Truth is powerful because it is the core dynamic of solving problems." (CHS 7/21/17)

"We live in a system of human emotions that masquerades as a science (economics)." (CHS 1/1/18)

"Always remember, your focus determines your reality." (George Lucas)

"Diversity is for poor people. Sameness is for the successful." (GFB)

"When power dissipates suddenly, it dissipates completely." (CHS 7/14/19)

"Disobedience is the true foundation of liberty. The obedient must be slaves." (Henry David Thoreau)

"Markets cannot price in the value of non-monetized natural assets such as diverse ecosystems." (CHS 7/14/19)

"Magical thinking isn't optimism, it is folly." CHS 1/3/22)

"Tune in (to self-reliance), drop out (of hyper-consumerism and debt-serfdom) and turn on (to relocalizing capital and agency)." (CHS 1/5/22)

"The path to everything you desire starts here: like yourself as you are right now." (CHS 11/20/22)

"There are only two signals: how many essentials you produce and share and if you're consuming less with better results. Everything else is noise." (CHS 12/17/22)

"Liberation is no longer needing any confirmation or feedback from others or the world for one's sense of self. Wealth, fame, recognition, admiration, praise, prestige, approval, sainthood, martyrdom, success: none are needed, none are desired." (CHS 12/26/22)

"When fame, wealth, prestige, status and glory are out of reach, you're free to pursue other more valuable things." (CHS 2/6/22)

"It is the sacred duty of every activist who seeks to better their community to grow and share as much life-giving food as is humanly possible." (CHS 6/15/23)

"Being anonymous, gray and unknown is the ideal state of freedom." (CHS 3/15/24)

"We seem to have entered a world of anti-leisure and anti-productivity in which the unpaid shadow work demanded to keep all the complicated digital bits in motion obliterate our leisure and productivity." CHS (5/22/24)

"It is axiomatic that failing systems work the best just before they fail catastrophically." Ray W.

"Looking younger is mere technique; thinking younger demands creativity." CHS (10/16/24)

"Tell me what's taboo and I'll tell you the truths that threaten the status quo." CHS (12/15/24)

"This is the core of the Attention Economy: the ultimate addiction is the addiction to ourselves." CHS (1/28/25)

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