Thanks to a good friend for sending me this article. I had seen it mentioned on CNBC this morning, but did not get the chance to see the interview with Mr. Burd.
http://online.wsj.com/article/SB124536722522229323.html
Reading this fills me with hope that the brutal healthcare debate may actually find a market based solution rather than layering in additional fixed costs that cannot be covered down the road. I'm literally excited as I type this post.
The key seems to be the opening up to everyone of healthcare costs! Lack of opacity defines a market and when there is a market there is competition. If one could effectively shop for his or her healthcare needs, one could influence the pricing and drive that pricing to a market equilibrium.
If I could have shopped for ACL surgeries and if I had to pay for some of the surgery, you better believe that I would have found the best combination of price, location, and quality of doc. Instead, I just got lucky that the doc I went to was excellent and I could have given two hoots about the cost because I did not pay out of pocket. (Note: it was over $4k.)
If you want to provide healthcare for everyone across the board, then similar to a Flat or Fair Tax, I propose that people below a certain income level would receive free government subsidies in place of the support they receive now. I believe this would be cheaper and in the end provide better care than the current medicare system. There is no reason why poor people cannot make smart economic decisions as well.
The tougher issue becomes those people who don't qualify as needy but whose employers don't cover part of healthcare. That is a difficult situation. However, costs in general will be lower across medical needs (potentially higher for some treatments/procedures) and at least those people will have better information to shop their medical needs.
It appears so clear to me that we need to open up all these government, et al medical databases and make pricing available. Too many special interests win out at the cost of the average person when pricing is hidden. The current and potentially future public options keep the cloak of big government and special interests over pricing and end up taxing us all more.
Who knew the head of a grocery chain could make me feel so excited on a dreary Friday!
-2outof4
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This is too timely. CNBC just said there are 45 million Americans uninsured.
ReplyDelete5.6 million are illegal aliens.
12.0 million are elligible for medicaid.
20.1 million earn 2x the poverty level.
By CNBC's math this leaves roughly 3% of the population truly uninsured.
How frustrating is the crowing from big government? It is the same as the Education debate. The real issue in healthcare is not being addressed by all the pontificating on the Hill. The free market described by Mr. Burd addresses this issue - high cost!
-2outof4
What happens when this creeping socialism starts influencing our day to day? Will I tell 2/4 to ski less because his daredevil stunts have a direct effect on the price/quality of my healthcare? Or better yet, will the ski resort start embedding those costs in the lift ticket?
ReplyDeleteSuch an imperfect systems as it stands, but an even tougher one to reform.
Imperfect for sure, but reformable for sure as well.
ReplyDeleteAcross all areas of public concern, we would come a long way if pricing was clear and a true market existed.
I could have purchased a brace I needed on AMZN for $170. The medical supply company that came and fitted me for it billed the insurance company for over $1,000. I could have fitted myself for half of that price if the insurance company offered! Again, I had no choice in the matter because my Insurance just covers it.
This idea of price discovery applies across industries. The idea that the government can surpress prices with subsidies or some other such favoritism to a Company or person is what is wrong with the system.
Mr. Burd above has realized this! Let them compete!
-2outof4