B.R.: Please watch this. I'm really interested to hear what you think, positive or negative.
Why Are American Health Care Costs So High?
Me: He sorta gets it. But it is strange to hear him talk about negotiating power, but then dumps it on government to accomplish it. So he wants free market-type price competition, but he wants anti-free market force applied to achieve it.
Also, he tells only part of the story regarding 28% of people who receive government paid healthcare, because they represent 47% of total healthcare expenditures. This means that this small share of people are hugely expensive, yet government is the big player in negotiating power.
In other words, government already dictates half of healthcare dollars, yet despite this we have the huge problems. Why does anyone think that government controlling 100% will improve the situation?
At least he admits it's a hugely complex problem. It isn't just malpractice, big bad insurance companies, drug companies, or over utilization. But he seems to think, without presenting evidence, that government is the solution. You know I don't accept that.
He went really fast, so I am not able to fully offer a response.
B.R.: Haha yeah he's a speed talker. Good response though, I appreciate it. Seeing the major financial problems as he lays them out, do you see another solution besides the way these other countries have done it?
Me: Healthcare at its root is a commodity. It responds to market forces, if allowed to. The main, spectacular, glaring problem with healthcare is that it has been increasingly isolated from market forces. Your fellow is correct that pressure needs to be brought to bear on healthcare as a commodity, but the only way to achieve that is by people having the power to decide for themselves where, when, and how much healthcare they need.
That means things need to proceed exactly the opposite of where they are going. Unfortunately, there are entrenched special interests who know there is big money at stake. This is always the case with government meddling. I support healthcare purchasing co-ops that people could join which would negotiate with providers for services. These co-ops with their purchasing power would be able to influence pricing of healthcare by where they take their business.
But prices will only respond so much because of the complex set of factors in the current system. I will guarandamntee you that healthcare will continue its upward spiral with further government interventions.
B.R.: There's a lot in there I agree with, Rich. Thanks again for your thoughts - let's pray for a better system one way or another!
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