buffalo wrote:
Not true EL. The government is the ONE payer that CAN control costs. Health CARE works nothing like other market transactions, there is no free market of supply and demand in health CARE. Economics 101 teaches that as supply goes up, costs should come down. But this tenant doesn't hold true in medical CARE â not when the supplier also controls demand. In health CARE, doctors can stimulate demand because (a) health INSURNCE blinds most patients to the costs of services and (b) patients often donât know whether a complex procedure is as necessary as a non-invasive one. As a consumer, you are a bystander to the real action, which takes place between providersâhospitals, doctors, labs, drug companies, and device manufacturersâand the private and governmental entities that pay them. Those same providers are also pushing Americans into newer and more expensive treatments, even when thereâs no evidence theyâre any better.
When Medicare is paying the bills, prices tend to be lower. Medicare is by far the largest single source of revenue for most health CARE providers, which gives it more leverage to set prices. Private insurance companies and providers, on the other hand, bargain head-to-head over prices, often savagely.
Private, for profit health INSURANCE wants the cost of health CARE to be high. As compared to Medicare, the amount of administrative complexity associated with private, for profit health INSURANCE billing is huge and requires the providers to employ large numbers of people. Hospitals and physicians spend a huge amount of time generating information to convince private, for profit health INSURANCE companies to pay them. Patients arenât usually aware that more than half of the time doctors or nurses spend at work is used to document what they do, for billing, and of course, to cover their asses. These days it is primarily on a computer. The majority of it is to prove to private, for profit health INSURANCE companies that they did what they were supposed to do. There are also many employees hospitals or a clinic who are employed primarily to communicate with private, for profit health INSURANCE companies in order to be paid. Iâve heard it estimated that 50 percent of human hours in a hospital is devoted to billing. For proof of this look how full a hospital's employee parking lot is during the week and how empty it is on weekends.
Canada and France, both of whom have systems that provide health care for every citizen at a cost that is far lower than that in the US, use single payers. This makes billing incredibly simple and actually possible for a doctor to do him or herself quickly and without help. A single payer system could negotiate with providers of health CARE services, setting prices and examining new technology based on its costs and benefits. Transitioning to a Medicare for All sytem is the only answer to controlling skyrocketing health CARE costs and providing every US citizen with quality health CARE at an affordable cost.
Not true EL. The government is the ONE payer that ... (
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Buffalo,
Let me comment on one of your points:
The government is the ONE payer that CAN control costs. Health CARE works nothing like other market transactions, there is no free market of supply and demand in health CARE.
Why should Health Care work any differently than any other aspect of the free market. You say there is no free market of supply and demand. While that may be true to a large degree by the way our current health care system works, it doesn't mean that we can't reform the system to allow the free market to work the way it should.
For example, I will refer you to the reforms that both Rand Paul and Karl Denninger have proposed. (
https://market-ticker.org/akcs-www?post=231949 and
https://www.paul.senate.gov/imo/media/doc/ObamacareReplacementActSections.pdf )
While a point by point explanation would be too lengthly in this post, I will try to summarize their general thinking. Paul want to greatly expand the use of HSA's in the amount of $5,000 each year which would treated as a refundable tax credit. Unused HSA funds can be accumulated over time to cover larger expenses. You can also use the HSA account to pay your insurance premium which would greatly assist young people who would choose to purchase catastrophic policies which would be very inexpensive. Denninger has a number of proposals which would require all health care providers to post prices for their services. The whole idea is to get consumers the information they need to make intelligent pricing decisions.
The basic concept of both proposals is to lessen the strangle hold that insurance companies how have on the consumer, and their negotiated deals with the health care providers. It is unconscionable that a doctor may charge someone without insurance 10 times the amount that he has negotiated to accept from an insurance company. If a doctor discloses his fee for cataract surgery, the consumer can choose which doctor they want to use based upon price and doctor reputation. If the doctor knows he will be paid in cash immediately by the consumer, he will not have to employ a staff of people filling out insurance forms and government regulations, and will not have to wait months for insurance company reimbursement. Do you not see how that cost savings, plus marketplace competition will result in reduced costs to the consumer?
Also, consider how the government allows pharmaceutical companies to charge US citizens higher prices than the same drugs are sold to other countries at much lower costs. The most recent attempt to allow US Citizens to purchase their drugs from Canada was voted down by Congress (Thank you Senator Corey Booker for your concern that the same drugs purchased from Canada are too risky because the Canadian equivalent of our FDA is not up to the task of making good decisions -
http://www.rollcall.com/news/politics/pharma-booker-canada)
I'm not saying that these few ideas are the entire answer to all our healthcare problems. But they are a good starting point. The problem is that the entrenched bureaucracy has too much invested in the current paradigm. Doctors, Hospitals, Medical Equipment providers, Insurance Companies, Pharmaceutical companies, and most importantly, our corrupt government officials who rely on campaign contributions don't want you to consider these alternatives.
Wake up people. There are better options out there than to a fricking government option. We all know that EVERYTHING government touches is more costly, and less efficient than a rational market based approach. Hold their damn feet to the fire and make them responsive to your needs.