The Problem with Health Care
The problem with health care is that prices are not really based on free market capitalism. Free market capitalism is based on consumers making their own purchasing decisions based on price and perceived quality. This is why McDonalds can't charge $20 for a Big Mac & fries. People would quickly decide go to Burger King or Wendy's instead.
But many restaurants do charge $20 a plate for entrees. This is because the quality of the food and atmosphere is deemed to be worth $20 by the people who dine at such establishments.
But wide-spread health insurance has distorted the health care market. Patients don't pay attention to price because insurance companies do the paying, and people's employers usually pay the insurance. This is why health care costs increase at many times the rate of inflation. Insurance companies pass the costs in the form of higher premiums. The companies that employ the patients then pass the costs in the form of higher prices, smaller raises for employees, or making employees pay part of the costs.
The real losers in this game are people who don't work for large companies that can provide health insurance. In America, not everyone drives a Mercedes or a Porsche as we have no notion that everyone is entitled to a Mercedes or a Porsche. But we do feel that people are entitled to the best health care available.
Because of that, I do support biting the bullet and implementing a national health insurance plan to cover catastrophic events. I would make this a high deductible plan ($1000-2000). This would then put routine, low cost procedures back into the free market where they would have to be lower cost, but people in traffic accidents and cancer patients would be covered without bringing financial ruin to their families. Optional insurance could then be purchased to cover costs below the deductible.
But many restaurants do charge $20 a plate for entrees. This is because the quality of the food and atmosphere is deemed to be worth $20 by the people who dine at such establishments.
But wide-spread health insurance has distorted the health care market. Patients don't pay attention to price because insurance companies do the paying, and people's employers usually pay the insurance. This is why health care costs increase at many times the rate of inflation. Insurance companies pass the costs in the form of higher premiums. The companies that employ the patients then pass the costs in the form of higher prices, smaller raises for employees, or making employees pay part of the costs.
The real losers in this game are people who don't work for large companies that can provide health insurance. In America, not everyone drives a Mercedes or a Porsche as we have no notion that everyone is entitled to a Mercedes or a Porsche. But we do feel that people are entitled to the best health care available.
Because of that, I do support biting the bullet and implementing a national health insurance plan to cover catastrophic events. I would make this a high deductible plan ($1000-2000). This would then put routine, low cost procedures back into the free market where they would have to be lower cost, but people in traffic accidents and cancer patients would be covered without bringing financial ruin to their families. Optional insurance could then be purchased to cover costs below the deductible.
posted by Dancar | 8:21 AM
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