Brain357
Platinum Member
- Mar 30, 2013
- 37,068
- 4,189
You are just plain starting out wrong here, I'm giving it as one example of healthcare inflation. By no means am I claiming it's the only reason. It's simply one of several reasons why markets don't work. You are also wrong in your claim that it's not a problem. Nobody is going bankrupt from routine services. So yes emergency services are a big problem. You have not offered a real counter, you have really tried to downplay emergency service. If you attempt to cut routine services by cutting out health insurance the cost of catastrophic care will quickly increase. You have no real answer.Sure, I'll "counter" it.Markets don't work in healthcare for obvious reasons. Counter my emergency room example if you can.Because of state policies that interfere with market pressure. Revoke them, and prices normalize.The price of healthcare rises and rises because there is no market pressure for it to decrease.>>> In fact, totally free markets are abysmally bad at delivering health care. That's why every advanced economy, to one degree or another, has given government a large role in providing health care to its citizens.>>> We've tried the market approach to health care and the result has always been the same: Poor health and poor people.>>> Poverty and disease go together, and the causation goes both ways. Show me a country that keeps the government out of health care and I'll show you a country that spends too much on death and not enough on life.>>> I'm not arguing that everything government does is good, or that everything the private sector does is bad. It's clear that government actions can have their own failures that make health care more expensive or less effective. All I'm arguing here is that relying on markets exclusively leaves us poorer and sicker.Straight from the spokesman of a Communist Party politburo.
If it's some kind of pill or medication, free markets are amazingly efficient at delivering it. If it's something to be forced on patients against their will, then of course there’s always a market for extortion, forced drugging, and involuntary hospitalization under the explicit blessing and protection of government.
The real healthcare market is precisely in the government intervention to enforce routine mayhem, involuntary vaccination, mass murder, and abortion-on-demand at the pleasure of street hookers for every patron of prostitutes and dead-beat dad on the block.
If healthcare is a “good” for individuals making their own decisions, then there is no reason why a free market cannot deliver it. It is when prostitutes have to be involuntarily committed for healthcare against their will and extorted and beaten for the payment of it that government must intervene.
Your emergency room example fails to adequately account for healthcare inflation for several reasons. First, you're talking about emergencies - by definition, exceptional situations. The vast bulk of our health care spending decisions are not made in an emergency. Second, people can and do make cost-based decisions during an emergency, if they are responsible for the costs. I know, I've been there and done that. Third, your "emergency room example" only affects prices for emergency services, and that's not the real problem when it comes to healthcare costs. The real problem is that the prices for basic, routine healthcare services cost more than the average person can afford.
Here's a better example of what drives healthcare inflation: Recently my doctor prescribed a skin cream for my psoriasis. It was new, so I figured it would be expensive. When I picked up my prescription, the price was $40 - for, maybe, two months worth. When I balked at the price, the pharmacist laughed. The forty dollars was my copay. The actual cost for the cream was $325 a tube. I was furious at the stupidity of such a scam, but my doctor said it was good stuff so I paid the forty dollars. My doctor was right, the cream works pretty well. But there's no way in hell I'd pay $325 dollars for a tube of it. No person in their right mind would. The only reason the drug company gets away with charging that much is because their customers have insurance that covers prescription medication.
This kind of cost/benefit decision occurs much, much more often than your "emergency room example". Every single time a healthcare consumer is faced with a cost based decision, that doesn't actually cost them any money, they have an inverted incentive - they have every reason to prefer the more expensive option rather than the less expensive. That's where the market incentives break down.