Tuesday, June 10, 2014
On the Idiotic Assertion that Competition Won't Bring Down the Cost of Healthcare Because Healthcare is a Necessity
This is an easy one to refute, folks. All that you have to do is compare
healthcare spending as percentage of GDP prior to Medicare and Medicaid
with that of what it's been since these programs. And here's the
evidence. For the first 180 years or so of the republic, healthcare
spending as a percentage of GDP was consistently in the low to middle
single-digits, and it wasn't until government got massively involved (in
the 1960s) that the numbers started skyrocketing. And the reasons for
this are obvious. Whenever government gets into the business of
subsiding something, the cost of that something invariably escalates.
That, and the third-party payment system acts as a disincentive for
folks to shop around and be better consumers, take better care of
themselves, etc.. I mean, I know that the phrase, "getting rid of the
middle man", has gotten a little clicheish over the years but in this
instance I gotta go along with it.
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4 comments:
I'm wondering if their is something missing here.
I recall seeing an actual bill for childbirth back in the day. Total cost just over 300 dollars.
Ever shopped for health insurance on the private market? It's interesting that prices for comparable plans Don't vary much and prices never seem to come down.
My view? Either way the public will continue to get screwed. It's just the way it is.
But you gotta realize, Les, in my system I largely get rid of the insurance companies, too (I use them only for catastrophic plans) and have most of the day to day care paid for through health savings accounts. See what I'm saying? No middle man.
We need many little players. Many more than we have now. Not "Ein Volk, ein Reich" (single payer)
I apologize, Jerry. While deleting wd I may have accidentally yours, too. Yeah, I agree that there are other variables at work here, too, but just common sense when somebody else is paying for something you're not as likely to shop around or be as prudent. Like if you had food insurance you'd probably get the fillet mignon and the lobster bisque and not the brown rice and beans (which is cheaper and actually healthier). And, also, think of the difference between buying retail and wholesale. By getting ride of the middle-man in healthcare (insurance companies and the government), you're basically buying wholesale. And I'm totally with you and Obama on the individual mandate. I just have the money going to health savings accounts and catastrophic policies, that's all.
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