Healthcare Myths

The Free Market

The weirdest part of the debate about heathcare is the perception by the right that we now have a free market. We actually do, but the market does not operate to reduce costs or improve care because the competition is completely removed from the customers of the health care.

We can solve the problem by eliminating the insurance industry

First, it really does not make sense to call healthcare insurance when what we are realy doing is paying an annual fee for a needed service. A part of those payments are for insurance.

BUT, wh it is true that we can cut costs of healthcare by about 30% if we eliminate the profitts and expenses of the intermediary insurance companies, the costs of the services themselves are laways rising becasue of the unique properties of health care inflation. Health care inevitably inflates faster than inflation because there is limited possibility for increase in productivity. Doctors already spend far too little time with their patients and the expanding power of biomedicine means the scope of services is always growing.

prevention saves money

Preventitive medicine increases costs. The longer we live, the more years of poor health we will have JUST because we are living longer. Plus, living longer does not alter the steady state rate at which folks die and terminal care is a huge part of the health care bill. Cigarettes are a good assert to healthcare bills because they make people die younger.

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