Generally regulations raise the cost of insurance, but not the cost of healthcare.
Ultimately, our healthcare is expensive because people get very sick, and it costs a lot of money to try to save their lives. No matter how you choose to pay for it, that is a truism.
I don't understand why people ascribe rules for health care that are different than for everything else. If your house burns down, it costs the same to build it again, regardless of how much premium you paid to insure it, or even if it was not insured at all.
That's not to say that in individual cases, the cost of healthcare is different depending on who's paying; but it macro, on a nationwide level; there are going to be X number of claims, and those claims are going to cost Y number of dollars. The majority of those claims dollars are going to be spent on very sick people either dying, or coming damn close to it; cancer/heart disease/dialysis/premature births.
Anecdote: My company's health plan spends about $12,000 per month - coerage for 25 employees; several spouses, and some children. $144,000 per year, for ALL of their healthcare. An employee in 2004 got Pancreatic cancer; was sick for 6 weeks, and died. Cost for that single episode? $620,000. Nearly six years of coverage for 25 families spent in 6 weeks on a single individual. The case is not unique.
Now, unless we limit what doctors are paid, or hospitals can charge OR don't pay for some of those "heroic" treatments; the costs are there - they are going to be incurred. The question is: What is the most effective, efficient way to pay for it? Obviously, we can eliminate paper work and inefficiencies in the system; and save dollars. But, remember, paperwork and inefficincies = clerical jobs for many Americans. Reducing those $$$$ reduces jobs.
How about this; We put Uncle Sam in a position to do the most good; while not being able to do the most damage (day to day operation and control of people's healthcare). Make the fed the ultimate stop-loss; they pay claims on individuals over $100,000 - to $250,000 (and index it to healthcare inflation biannually); private en ies cover everything up to that point - with subsidies for people who cannot afford that lower coverage. The payor's file claims with the govt. for claims over the stop/loss - the govt. reimburses the claim; but doesn't have to get involved directly with the processing - although, obviously, they must have an ability to audit. Pass a regulation, not controlling prices; but making pricing by providers transparent (doctors/hospitals/labs); they must post their charges publicly; and must charge everyone the same price - whatever that might be (I cringe at this suggestion; but for reasons that are more complex than I want to explain - there are a lot of shenanigans that go on in contractual pricing that should be stopped).
Reply With Quote
