Cost control is hard

Discussion in 'Healthcare/Insurance/Govt Healthcare' started by Greenbeard, Jan 14, 2011.

  1. Greenbeard
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    Greenbeard Gold Member

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    David Leonhardt has a nice mini quote round-up today making the obvious (but important) point that long-term health care cost control is not going to be a cakewalk. Worth noting.

    Wishful Thinking on Health Costs:

     
  2. Revere
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    Any third party payer system, be it government or private, is doomed to have no downward pressure on prices, since they're negotiated by non-market participants.

    It needs to be scrapped. Every one of those quotes admits its flawed.

    Entitlements don't get better with age.
     
  3. Oddball
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    Oddball BANNED Supporting Member

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    With the federal gubmint in charge, cost control is a pipe dream.
     
  4. Revere
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    It has to be repealed. Any premise that Congress will make it better is a joke. Democrats had a chance to strip out a horrible provision that would have mandated 1099s for small business where there are no such requirements now. Has nothing to do with health care, but they didn't strip that out.

    Agencies are already writing rules to add provisions pols swore were not in the bill that was voted on.

    It just has to go away.
     
  5. PoliticalChic
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    PoliticalChic Diamond Member

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    The following is an easy to understand explanation of he healthcare problem vis-à-vis costs, from “Broke,” by Beck and Balfe, found on page 313.

    “If you substitute something we all buy every day, like food, for health care, it becomes easier to understand why costs are rising so rapidly.
    Imagine your employer were to take $12,000 per year out of your paycheck and then sign you up for a “food plan.” Your options are limited: a few assorted restaurants and one large grocery store that you are covered at. Any time you go to those places, you pay only a small co-pay, something around $10 or $20, no matter what you actually buy.

    A few things would happen under a system like this:

    a. You would be robbed of choice. Heard great things about the new Mexican place down the street? Sorry, you’re not covered there. Want vegetarian-only options and you’re willing to pay more? Sorry, we have only one plan choice.

    b. You would buy more food than you need, since the vast majority of what you’ll pay is set at the beginning of the year and the food co-pays are tiny. Not sure if you really want the apples? Just grab them anyway and throw them out if they go bad. Who cares, they’re free.

    c. Most of the restaurants you eat in and the stores you shop at won’t even display prices. The cost is irrelevant to you. It’s like being on a cruise ship- all the food is included, so eat up.

    d. Since you don’t care about individual prices, stores and restaurants jack them up. A bag of lettuce for $34? Sure, why not! The people who run the food plan might argue, but how can they ever figure out what the “market price” should be if the market itself lacks any competitive pricing?

    In summary, fixed-price, noncompetitive plans result in lack of choice, higher prices, and overconsumption. That’s exactly how our health system works with third-party payers, and it’s exactly why it’s collapsing.”
     
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  6. Gadawg73
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    Gadawg73 Gold Member

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    Damn, that is what I also have been stating for 30 years.
    As long as government and/or insurance companies are paying the bills prices will never go down.
    Medicare alone will bankrupt the country.
    Blank check health care be it benefit group health or senior Medicare has ruined American health care. Gramps and Granny averaging 200K the last 30 months of their lives has to go.
    Good post.
     
  7. Gadawg73
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    Gadawg73 Gold Member

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    First of all, you have to convince BOTH Republican and Democrat employees that they DO have 12K deducted from their check this year and 24K will be deducted 7 years from now and 48K will be deducted 14 years from now. The overwhelming majority of them believe "My health care is free. I pay nothing for it. My employer pays it all"
    The problem is most Americans are ignorant of how a business is run.
    So how do my 3 businesses compete when it costs me 24K per employee in 7 years for health care?
    They won't. This system is unsustainable. We have to have change NOW.
     
  8. Quantum Windbag
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    Quantum Windbag Gold Member

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    This guy has obviously never dealt with the federal government, otherwise he would no the last thing that happens when something does not work is that it gets changes. The entire Department of Education is nothing but a massive failure, and nothing it has ever tried has worked, yet it not only is still doing the same thing, it gets bigger, more expensive, and less effective every year. Why on Earth would any sane person believe health care will work any better?
     

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