Thursday, October 3, 2013

5 and 50

I have pointed out that private health care companies cannot ration care because competition will not allow it but a government plan with no competition can. For those willing to face reality they will quickly understand that the country cannot afford to offer all total care to every person and thus the need for rationing. There is something called 5 and 50 in our health care system and it refers to the fact that 5% of the population uses 50% of all health care resources. One half of the population spends on average $236 per year per person while 5% spends $41,000 per year per person. Going further 1% of the people spend $90,000 per year per person. Regardless of what kind of health care system we end up with some type of rationing will be necessary and people don’t like to hear this but the money is just not there. We can close our eyes to the situation and keep kicking the can down the road but death panels are on the way. The longer we postpone this, the more difficult it will be because new and costly technologies are continually being developed.

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