Friday, March 22, 2013

Health care

I have been forced to reconsider my solution to rising health cost. My plan A was to get rid of the third party payer system. Recall that this is where the consumer doesn’t care about cost since the insurance company pays. This is so ingrained by the vested interest, that the country is unable to change. The only way out is using a single payer national health plan and this is because the only answer available at this time, to reduce cost, is to ration benefits. Private companies cannot do this because the free market competition will always offer more for those who are willing to pay more. If company X says they will no longer pay for heart transplants of those over 80, the people will just move to company Y and thus companies will not go this route. The government on the other hand, being the only option, can ration. Medical technology has advanced so far ahead of our ability to pay that we are forced to ration. This is what western European countries, that have national health care, are doing. No one likes the R word but it is a fact that we cannot afford to provide unlimited care for all of our citizens. Will those who are wealthy get better care by paying extra by using their own funds? The answer is yes. The only other alternative would be to tell the rich that they cannot buy extra care and that would not work since they could travel to other countries. I believe national health care is coming soon.

No comments:

Post a Comment