As the Senate ponders its version of the health care bill, we look for provisions that might actually make health care less expensive.
Unfortunately, the current set of politicians, while more free enterprise friendly than the Obama set, still do not quite understand how it works.
The principle is very simple: Prices go down when consumers can buy goods and services based on price and quality in a competitive market.
But with the current combination of government “help” and the insurance companies’ desire to be your one-stop-shop for all of your health needs, consumers are nowhere close to making actual decisions about their health care. If you are philosophically savvy, you’ll see Obamacare, including both the government and private insurance strategies, have a ‘socialist’ quality that forces prices up (see below). Ever tried to find the price for even a standard checkup with different doctors? Good luck getting an answer. And how do you know is a doctor is good or bad? Ask your friends, your colleagues, your mom??
I just found out my last checkup cost over $500 to my insurance. I think my actual time spent with the doctor was about 13 minutes. I understand the average cost is about half of this. But since insurance is paying for everything, why would I care? If I had to write a check for this directly, you can bet your rosy red butt, that I would have shopped around!
This is not rocket science. If you want to know how to make prices go down, spend about 10 minutes perusing these articles published earlier this year. Then call your Senator.
Some other details.
– average insurance markups are 40%. So my $500 checkup was returned to the insurane company as $725 in my premiums. And of course if I have fewer checkups than average, I’m still charged for them in my premiums. The term “insurance” implies preparation for unlikely events. Why pay a 40% markup on checkups when it’s a guarantee that they will occur?
– The mathematics and philosophy of socialism are simply debunked with a straightforward equation. First a strict law of economics” “What you subsidize you get more of, what you tax you get less of.” Think about it a sec, any arguments? Now apply this to the common description of socialism: “From each according to his ability, to each according to his needs.” Insert a government hand and you will see that socialism taxes “people with abiity” and subsidizes “people with needs.”
– The further you separate the consumer from the actual services, the less likely you are to have a truly competitive market. Insurance companies make more money when they cover more services. The price we pay for the “convenience” of a one-stop-shop, is an ever increasing spiral of price increases.
Want the Whole Story?
This book was written by Joe Gilbertson of the Punching Bag Post Staff. This is the solution to the Obamacare fiasco: