WHY IS HEALTHCARE SO EXPENSIVE IN AMERICA? Free Market Explanation Leftist Explanation Healthcare in America is somewhat of a mess Nowadays as average citizens find acquiring decent treatment more and more of a struggle they call upon their politicians to fix the system The system some say is too permissive of the insurance companies the hospitals the pharmaceutical companies etc They say that there needs to be some sort of demand side counter-balance to the supply side of the medicine economy The problem with this political position is that it asks for a government solution to a government-caused problem It asks that we continue to tinker with the medico-economic machine Healthcare and get the knobs and gauges just right Before we begin to do that we ought to take a look at where the gauges and knobs are standing right now how politics has already distorted medicine There are two categories which we can use to describe the problematic ways the government interferes with medicine today restrictions and subsidies What we have today is a virtual ratking of lobby-law bureaucracy and demagoguery The author suggests that before we write yet more legislation on what should go where we aught to repeal laws which already do so and observe whether medicine becomes more affordably and sensically distributed Illegality of Cross-State Insurance Purchases- Consumers are prohibited from reaching across state ines to purchase their health insurance This narows the selection of insurance plans available to consumers encourages graft in each state and makes insurance pricing less competitive Licensure of Medicine Doctors clinics hospitals and insurance providers must become licensed by local state or federal govenment depending on the scenario in order to provide care Doctors are icensed by the American Medical Association which monopolizes the licensure of all physicians in America and granted scope-of-practice privileges by states Hospitals and clinics are licensed by municipalities and insurance providers are licensed by state governments The essential function of licensure in this case is to exchde would-be providers Licensure has capital and credential requirements which then erect barriers to lower-cost solutions For example a would-be doctor who may not have attended a prestigious medical academy but could diagnosis common diseases is prohibited from providing care Hospitals require certificates-of-need in order to start construction which are handed out by municipal or state planning boards Hospitals can create local monopolies by influencing planning boards not to award certificates-of-need Such restrictionary measures may sound good at first but become blaring bulls-eyes for medicine monopolists Thus there are a restricted supply of medical faclities and professionals Health Exchange Boards In many states insurance policies are determined in governmental organizations called health exchange boards wherein state representatives and insurance representatives negotiate a fixed mumber of policies available to the citizenry This is supposed to cut down on complications between private industry and medicaremedicaid What is also means is that a certain mumber of insurance policies are never made available to the public and these health exchange boards can also be used to exclude lesser-capitalized insurance groups These boards limit your coverage options for the sake of bureaucratic convenience and tend to exclude policies which cover less and cost less Insurance Alternatives Regulated At the turn of the century people belonging to fraternal societies were able to afford basic medical care for the entire year for just a day's wages Fraternal societies were created as an alternative to insurance companies where members could buy into the communal pool and then collectively hire a doctor to work on wages Elitist doctor's were humiliated by this lodge-practice and demanded the AMA be created which then only granted licenses to those who did not do lodge-practice' Mutual aid societies withered away in response to both the licensure and the capital and reserve requirements which were imposed on all 'insurance companies which were too burdensome for the comparatively small mutual aid societies to comply with Competition in insurance stagnated as alternatives were prohibited Unionism in Medicine Medicine is a unionized industry Nurses and other random hospital personnel through their unions demand that certain processes be made impossible unless under the supervision of a unionized worker This means that jobs which require only the labor of one person become jobs that require the labor of six people The hospital and ultimately the taxpayer then has to pay for said extra labor This also raises the barrier to entry for possible competing clinics if they can't provide certain services without hiring unnecessary workers Patents Patenting is when a government gives an inventor a monopoly over an idea Said inventor may then punish others should they try to use the same idea using only their own private property This limits the amount of providers-per-innovative-idea to one Some might say that patents are a necessary carrot to the proverbial horse for spurring innovation Patent lawyer Stefan Kinsella disagrees saying that empirical evidence suggests that patenting actually has a depressing effect on innovation Patenting in the medical industry leads to needlessly expensive medical goods namely machinery and pharmaceuticals Food and Drug Administration The FDA is an organization which screens prochucts for safety and quality before giving them the 'green light for sale and consumption It has also been captured by agribusiness corporations since its very inception It slows the release of new medicines prohibits people from tryng alternatives and occasionally seizes property and privilege only to confer it to a state-blessed enterprise This discretionary authority especially when seized by monopolistic interest leads to slowed innovation fewer products available and product markups as large as 37 times R GREEDY Medicare Medicaid Price Fixing The Medicaid and Medicare programs set the minimum reimbursement rates which companies then use as a baseline This system encourages you to go onto an insurance plan Physicians offer lower prices to clients with insurance to try to attract business and then charge higher prices to make up for said insurance discount This means then that those without insurance and can probably least afford care end up paying the most for it Without price-fixing for procedures and treatments there would be no general minimum charge and physicians wouldn't have to discount insurance companies to attract clients Paperwork-Paperwork in general is a restriction on business It raises the costs of a business as entrepreneurs are forced to comply with regulations they must also employ lawyers and pencil pushers to sort through red tape This disadvantages small businesses as they aren't politically connected enough to avoid regulation and also are more sensitive to high costs of businesses than are large businesses Paperwork slants markets in favor of well-established businesses Institutional Tilt Towards Insurance-When everyone is encouraged to go on health insurance everything is encouraged and even employers are encouraged to provide health insurance the consumer's function as a discriminator and cost-cutter is qualitatively altered Instead of economizing and considering every purchase of medicine the care-seeker will simply ask for help and sign the bill Care-givers acknowledging this wil sell high-cost options primarily and not suffer for it seeing as the care-seeker's treatment is being covered by his insurance company What happens over time when consumers do not seek the best bang for their buck is that both treatments and insurance rates will go up Mandatory Coverage of Specific Conditions Insurance companies are compelled by law to offer coverage to certain treatments in all of their policies This benefits the person with said medical condition to the disadvantage of all without said medical condition All are forced to pay for the now higher rate due to the increment of risk added by mandatory extra coverage whether they want to be covered for said condition or not If a person A has a certain condition it is not the responsibiity of the next person to subsidize the treatment of person A Insurance plans become homogenized and unnecessarily expensive This encourages people not to avoid certain conditions such as obesity or heart disease Aid to Hospitals Equipment-Hospitals receive aid for having the latest and greatest hi-tech equipment This encourages hospitals to spend too much money on expensive equipment party paid for by taxpayers And since the hospitals aren't buying the equipment because of a legitimate need but because of a political incentive they are not discriminating buyers Thus we can expect that suppliers of expensive medical equipment will raise prices comfortably without fearing that hospitals will stop buying PROPHITS BAD!! Aid to Hospitals Patients The govemment will pay for a share of a patient's hospital bill if it is sufficiently huge Since hospitals are non-competitive they will respond by ratcheting up the hospital bill to get federal money Citizens in the aggregate of their tax forms and ER bills end up paying twice as much Aid to Employers The federal tax code encourages employers to provide their employees with health insurance Some might say this is great but it is not Employers offer that health insurance out of your wages Though the wage compensation you would get if employers were not encouraged to off you health insurance would probably not at this moment be as big as the total value of the health insurance he does provide you at this moment it causes some big problems Firstly it programs you to chutch your job ike a life-line whereas if you acquired insurance independently you could go where you liked If you value independence and self respect that's problematic This also disables the consumer choice mechanism no one will leave their job just to get a different healthcare plan Secondly it puts everyone on bloated insurance plans which leads to the problems described above insurance for things you don't need to be insured for can pay for yoursef dont need to pay for etc Inflation Since much of the deficit is financed out of Open Market Operations and Medicaid and Medicare are about half of the deficit a sizable chunk of all printed money goes into government spending in healthcare This means that the govermment's buying activity in healthcare drives the prices up and those not on the government healthcare teat will have to pay higher prices not having had the privilege of paying yesterday's low prices with tomorrow's new money they will have the pain of paying tomorrow's high prices with yesterday's old money As the deficit gets worse more debt will have to be monetized and there will be more inflation in healthcare Meaning healthcare isn't getting any cheaper America does have a healthcare problem It's a problem of graft lopsidedness short-sightedness bureaucracy lobbyism pharmaceutical and insurance company influence I's a problem that competitive enterprise and free association could fix easily but they are prohibited Before you seek to bring down the hanmmer of legislation on America's demented healthcare-industry's head try releasing it from bondage Try letting people for their own organizations inmovate independently provide their own services and products live outside of the intuence of insurance companies and govemments and make their own decisions If the price of healthcare doesn't come down after that then start talking about legislation 1 httponlinewsjcomarticle SB10001424052 2 httpfenwikipedia org wikiAmerican Medical_Association 3 httpwwwcatoorgsitescatoorg files pubspdf pa-621pdf 4 httpen wikipediaorgwiki Certificate of need 5 httpwww freenationorg a 6 httpcapitaresearchorg201208hospital-unionization-harms-the-sick 7 http 50604574360923109310680 html 8 httpsurgerycenterofoklahomatumblrcompost33608272505 food-and-drug-gangsters 9 httpwwwamericanthinkercom201106 medicare _reform its_the_price fixing_stupid html 0 httpwwwyoutubecomwatch?v-3WnS96NVMI Why is Healthcare so Expensive in America? Free Market vs Leftist Explanation Meme

found ON 2019-07-16 10:03:23 BY ME.ME

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