Thursday, December 5, 2013

Health care cost

In 1973 I sat in a classroom for three full days listening to an expert tell me about health care insurance. The morning of the second day my classmates and I discussed what we had learned and we all agreed there were two major problems. The first was that with low deductible and low co-payments the patients did not pay out of pocket enough for services rendered and this would cause a rapid increase in cost. The second was the realization that no country could afford to provide total care for all of its citizens. Fast forward 40 years and much to my surprise Obamacare has stumbled and bumbled its way into solving both of these problems. The up-front cost problem is solved with high deductibles and the total care is solved by rationing. The rationing will be primarily directed toward patients near the end of life and the deductibles will hit the middle and upper middle class. These two aspects of Obamacare will reduce the long term cost and bring that in line with the regular cost of living. The saving will be large enough to provide free or almost free care for the poor and Obamacare will do all that was promised. It will reduce long term cost and insure everyone. Since money was taken from Medicare by reducing payments to physicians and hospitals there will be some reduction in service to us folks who are on Medicare and of course we will face the prospect of rationing but remember there is no free lunch.

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