Political online game and economic simulation

The American healthcare system is miserable, if you compare costs vs. benefits. Numerous politicians, leaders and economists have tried to "fix" it, but the american healthcare systems still is the worst and (per capita) the most expensive healthcare system of all developed OECD countries.

Now, three super smart and super rich guys, Warren Buffet (Berkshire Hathaway, net worth 90 bn $), Jeff Bezos (Amazon, net worth 120 bn. $) and Jamie Dimon (CEO of JP Morgan Chase, net worth 1,3 bn. $) want to fix this and pare the costs of health care in the US.

https://www.wsj.com/articles/amazon-berk...1517315659

https://www.fool.com/investing/2017/05/0...m-for.aspx

I am really looking forward to receive updates regarding this partnership. If the government can come up with a functioning system, we should give the corporations a chance.

It's simply a case of unlimited demand for a quite scarce service/good. It's extremely difficult to become a doctor, but under the current healthcare system almost anyone can afford to go to the doctor even with the exorbitant prices, which is an economic problem. The same system is in place for our Universities as well, and un-ironically the same result. Economically the solution is uncomplicated, but politically it is extremely complicated.

Well, that's part of the problem. The other - from my perspective even more pricey - part is the US litigation system. If you as a doctor have to have a very expensive litigation insurance or as a pharmaceutical company have to set aside billions of dollars for the obviously coming litigation cases, than your service will cost more.
And the US justice system with its litigation process is indeed flawed as the system produces litigation cases and crafty lawyers. Even if a pharmaceutical company has fulfilled all information duties to the FDA and updated their patient information and healthcare information always as soon as reasonable possible if a new risk has been identified for a medicinal product, there will be a lawyer seeking "victims" of the drug as soon as there is money to be made from the company or the drug. And in the system the jury will always give a punitive damage call, as it is "poor victim" vs "bad pharmaceutical company".
So, as a pharmaceutical company, you have to calculate some billions of damages into your revenue for every product. That's why US medicines cost at least double what they cost in the high revenue countries in Europe (Germany, UK, France, Denmark, Netherlands). Because otherwise no company would be stupid enough to sell drugs in the US.
And that's not only for Originators and patented drugs... even Generic companies have been sued...
And even individual doctors have been sued for millions...

What would that solution be?

The justice system cannot be changed.

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Well, even I can see a "major culprit" in the diagrams.
What the hell is "other" costs? Seeing that "administration" is missing otherwise, that's probably the biggest part in "other" - costing the US about 30% of all healthcare spendings. With drug prices and service prices all about double the cost of Germany, the administration should NOT have the same relative cost as in Germany (administration of the healthcare insurance is about 25% of all spendings of the healthcare insurance - which even is a stupididly high amount!), and certainly not three times the costs for prescription drugs. That comparision is hilarious: the (in Germany unanimously blamed for the "high insurance spending and) in the article cited No. 2 reason for high spending, "high drug prices" amount to just 10% of the healthcare spending (that's less than in Germany, where medicines amount to 13-16%, respective who you ask for data), whereas the administration eats 30% - resulting in the USA spending three times the prescription drugs spending on admin, Germany "just" two times.

I work in the wrong industry... I should have gone to the administration of healthcare "providers" in the US...

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Seeing that... I think that the solution that Buffet (a really intelligent man) and Bezoz will come up with will indeed focus on administration costs [as they are bound to cut that - and Bezoz is best at cutting that], and hospital care [no pay for service anymore, instead pay per case].
I also really like to see if they implement the "pay per effective healing" instead of "pay per case" scenario that everyone is always fantasizing about in Europe. I can imagine that major pharmaceutical companies are willing to go for that if it is properly funded and judged independently.

It's politically complicated because of the US constitution and public opinion. There are two viable solutions: full market control or partial nationalization and market control (I do not entertain the idea of a command economy being in any sense viable). The problem with the former is that it has very little support among young constituents, so if the politician who supports it fails - it may be career ending, unless he becomes a Libertarian (which you might as well declare yourself a political bystander at that point). The problem with the latter is not only does it not have half of the public's support (half of the public hates government), but such a solution is unconstitutional; the national government may only regulate commerce, and in that regulating it may only regulate, except when it comes to post offices and roads. Congress may provide for the "general welfare", but only via taxation, not nationalization. (See: section 8 of the US constitution) In my own political opinion, the solution is to suspend the various programs which subsidize demand to be far greater than supply, and in regards to FICA programs, give people their money back over the course of several years, while halting all further contributions.

While I do appreciate the notion and the arguementation, I think it's not the only solution. And the problem statement is too simplified.

That's targeting the demand question. But healthcare demand is always there. You need to target the supply question and the efficiency question. FDA is doing a great job in regulating medicinal products [really], but the greatest problem among the US healthcare system is not the medicinal products spending but indeed hospital pay for service and the litigation system with it's one-sided "every pharmaceutical company is evil and we as the jury will give the poor victims damages"-approach.

Considering how inflationary the market is right now, supply should handle itself over time. But demand must be frozen in order for it to catch up, not expanded.