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View Full Version : How to fix healthcare costs



War Machine
06-28-2012, 03:58 PM
The problem: healthcare cost

The solution: get rid of insurance

Health insurance was originally offered as a means to pay for extra high cost medical needs (surgery) that happened suddenly where a person had no time to prepare. Insurance became something demanded from employers, and it was given. Over time people demanded more and more to be covered and the companies that offered it added more coverage.

The issue became that providers would submit a bill to the companies and they would pay it. That created a false paradigm.

The free market dictates things are only worth what people are willing to pay for it. I am only willing to pay $.50 for an aspirin, but the insurance company is will to pay the hospital $5 for the same aspirin. In the hospital setting the aspirin is worth $5 therefore that is what is paid for it. The problem is the minority of people who have no insurance have to pay the $5 as well....therefore insurance actually raises medical costs.

Also, people with insurance pay out of the paycheck...lets say $50 a week. When they go to the doctor they have a co-pay and deductible (usually I hear $1000 or so). Lets say Mr.X goes to the doctor. Mr.X was insurance as I described. He pays $2600 a year. He goes to the doctor for a stomach issue and pays a $20 co-pay. The doctor wants tests and it cost $2000. Mr.X has a $100 deductible so he pays $1000 himself. So far he is out of pocket $1020 for this visit plus the 2600 insurance so total $3620. If he payed out of pocket altogether it would have costs about $2100, so actually insurance costs an extra 1520.

Now, some would argue that lack of insurance would make prices too high for people to afford. I disagree. For one, without insurance being taken out of checks, people have more disposable income. Second, as I stated, markets for a good or service can only exist in an environment where they are afforded...ie prices would have to come down. Again, as I said, the $5 aspirin can't be $5 if people refuse to buy it for that price. It would have to drop to a reasonable level. So would other medical services.

Plus, add in tort reform and doctors not needing expensive medical insurance, those costs won't be passed on to us.

All in all. I think I can make an argument that the solution to healthcare costs is LESS (preferably no) insurance, not more or nationalized insurance.

Too bad the SCOTUS and "progressives" failed us.

ZenBowman
06-28-2012, 04:04 PM
How do you propose to "get rid" of insurance?

Good luck in convincing people to voluntarily give up their health insurance.

metroins
06-28-2012, 04:04 PM
What if you're in an accident with $500 to your name. The hospitals charge $10,000; you now need physical therapy, and extra surgeries to fix your right leg. The majority of Americans can afford the surgery/cost so the total cost of the bill is $15,000 upfront + $1,500 per month. The prices haven't gone down because only 10% of people (including you) cannot afford it and the companies are making money without you.

You cannot afford it and they will not treat you because you cannot afford it. What do you do? You cannot make more money because you cannot walk and the accident was completely unforeseeable, unfortunately you didn't have much money in savings because you work as an auto mechanic.

How do you get your leg fixed? Let's say it wasn't an accident, let's just say it was Cancer treatments you cannot afford; you're in the lower 10% of income. Should we just let all lower 10% die?

Insurance's primary purpose is to cover unforeseen occurrences of accidents or diseases. We're not talking about asprin.

PaulG
06-28-2012, 04:09 PM
I've been saying this for years, but it won't happen. The Healthcare Industry is a Giant and have to much power.

Healthcare is a sponge like middle man, that takes money away from doctors. But, this is basically what Obama wants to really do, but cannot fight big interests.Whilst, in the process subsidies the medical field.

Healthcare industry wants less doctors and less supply of medical care so the demand goes up, and so does their profits. It's counter productive to the interests of societal needs.

B.O.L.A.
06-28-2012, 04:16 PM
There is an artificially inflated demand (giving people sh*t for free, mandating certain things) and a coercive restriction of supply (legally granting doctors, hospitals, and big pharm a monopoly on providing healthcare, ie anyone else who does it goes to jail or gets shot). Patents, unfunded mandates, various regulations that bar entry to the field, license, etc, are some of the things at play. The common outcome is higher prices.