Wednesday, January 06, 2010


Keith Hennessey, one of my favorite economic policy bloggers, gives sweeping healthcare legislation a 90% chance of passing. This is unlucky for an abundance of reasons that will not be addressed now.

My main concern with heathcare is its roughly 8% annual growth rate, which as my mother could tell you, means that medical expenditures will double just about every nine years. To me, this is much more of a problem than people not having insurance because 1) eventually, even government/insurance will run out of money and 2) an overabundance of insurance is one of the roots of the problem.

How can people be conservative with their medical expenditures with this trend:

The article continues,

Because so many Americans rely on an insurance policy or a government program to
pay their health care bills, the internal governors that temper the rest of
their purchases are turned off. When a visit to the doctor's office or a
diagnostic test costs them a mere $10 or $20 co-payment out of pocket — or there
is no charge at all — cost has little impact on their decision to see a doctor.

A rising tide may raise all boats, but a dropping tide lowers just as many, and rising costs will lower the quality and abundance of healthcare. Even if the government is paying for it.


Mom said...

Sweetie, I agree with you. I think high deductible policies like we have would be a good solution. Plus more moms and wives who say, "Get over it. We don't want to spend money taking you to the doctor!" Also the always useful phrase, "We never get sick"!

Sarah said...

Scary stuff.

Mrs. Haid said...

I agree, too.

I went to the doctor more regularly for maintenance and without caution when I and a low copay. Now we have the high deductable plan, I haven't been. I hate to hesitate about my wellness, but, I know I think abou the money in a different way now that I have to pay for it more directly. And while I think I am "skimping" on health care, I know what I do get is far superior to what most humans get world wide.