Saturday, July 24, 2010

The high cost of healthcare should be addressed

Whether it began with employer required health insurance or when Medicare was signed into law, Government run healthcare created a “wedge” between patient and doctor. Doctors no longer deal directly with their patients for the cost of care. Patients are no longer encouraged to make their own choices of physicians but must choose from limited networks of employer chosen health systems. One major effect of this has been to drive up the cost of care. Why?

For one, doctors don’t know what procedures cost, either do patients, so there is no incentive by doctors or patients to keep costs low in spite of the endless reams of paper sent to us by our health insurance plans after the fact. Second, people feel that someone else is paying for it, but studies and markets show that when patients control their own healthcare dollars, they make thrifty choices. Those are our dollars anyway, right? This is the money we pay through our employer plans to buy health insurance or what we purchased independently in the market.

If people ‘did the math’ and reasonably considered the future, they would know that adding more people to a plan (who are not paying anything into the plan) is not going to bring the cost down. It will only increase demand (people always want more of what is ‘free’), increase costs and force limits on care. During a time of economic hardship, Government should turn to the private sector for solutions rather than take more control.

Voters would be wise to read up on our medical system before November and to tell their elected officials to make wise, reasoned choices. Your health and the lives of those you care about will all be affected.