Sunday, July 12, 2009

Cost, Price, Value

RealClearPolitics - Alice in Medical Care

Sowell does a good job of reminding us of the obvious we seem to have forgotten relative to health care.
It is short, easy, and instructive to read -- worth following the link, but here is the take away at the end:

Politicians may talk about "bringing down the cost of medical care," but they seldom even attempt to bring down the costs. What they bring down is the price-- which is to say, they refuse to pay the costs.

Anybody can refuse to pay any cost. But don't be surprised if you get less when you pay less. None of this is rocket science. But it does require us to stop and think before jumping on a bandwagon.

The great haste with which the latest government expansion into medical care is being rushed through Congress suggests that the politicians don't want us to stop and think. That makes sense, from their point of view, but not from ours.

One point that Sowell doesn't go into is what I call the issue of "Learjet health". Why do we fly my 70 something aunt from N Wisconsin to Mayo TWICE on a helicopter? I can't afford it, she can't afford it -- why do we nationally think we can afford it? Is it "nice" that we ALL are getting the absolute "top flight healthcare"? I guess -- but then complaining about cost doesn't really seem to be very rational.

What would we say if everyone that wanted "the best" had to have "$50K in an account" (lor $100 or whatever) that would be used for "care beyond that normall avaiable"? If I wanted to be sure that my family could "get the chopper", then I'd be required to come up with those assets and have them sitting in an account -- otherwise, it's the ambulence.

Cruel? Heartless? Well, we KNOW that Teddy Kennedy, famous athletes, corporate CEOs, etc **WILL** be taking the chopper -- no matter what BO and company decide. If we can't afford "all" (and I think it is pretty clear that we can't), then we are going to ration. If we don't find a way to have something approaching a rational discussion on cost, price, value, then we are going to do what all the other countries do, which is have a MUCH worse system for 98% of the population and the upper 2% have the best there is.