The Gordian Knot

Anyone concerned with the American Health Care problem need read Arnold Kling, his latest article can be found here. My only complaint with Arnold’s ideas would be the simple incomprehensibility of the methodology for Those who are covered by it. The ideation is good, but the implementation remains too complicated for the average User. High Health Insurance premiums do not inhibit overuse Today, or would maximum limits on lifetime coverage. Most people are concerned with only the Present, and a debilitating Injury in a Year’s time is Mist on the Wind to themselves; they totally incapable of determination what and how much health treatment they will need in the future. People must be presented with a list of Options which they can use.

Dean Baker also provides some insight into the Health Care problem. He states We would be paying only One-Fifth as much for Proscription Drugs with elimination of the Patent monopolies extended to Drug companies. I personally do not understand his belief that foreign doctors are restricted from practice in this Country, considering the number of foreign-born Doctors currently working in this Country. Lowering of American medical standards seems of no benefit, and changing Immigration rules belongs to a more expanded Public arena. It might be of greater advantage to turn his attention to the organization of Clinics and Hospitals.

Tyler Cowen provides this Link on Purchasing Power Parity; by the way, my Choice is Number 8, but I could not explain that one here. The discussion, though, can be related to the Health Care Costs problem. National Political process afflicts almost all of the Economy, and Health Care pricing more than almost any other factor. Institutional Health Care (think AMA and Hospitals) are allowed practical carte blanche to Self-Price Settings. Doctors determine what they think they should be paid, Hospitals and Clinics get to set their own monopoly Pricing without interdiction by governmental regulation. All Health Care Providers follow the lead of the Institutional Price-setters. We will achieve no betterment in Health Care provision Cost, until We break this monopoly. lgl