What drives health care costs up?
Third party payments remove personal responsibility from the equation. Since we don’t pay for health care we are unconcerned about the cost and don’t shop for the low cost solution.
Cosmetic surgery is an example where third party payments are not applied. (It is virtually impossible to buy insurance for cosmetic surgery) The result is that the cost has not escalated!
The following video from the Heritage Foundation explains the third party issue. I wasn’t aware that the government, state and federal, actually pays almost 50% of all medical expenses. Knowing how careful our government is at controlling costs, it is not surprising that medical costs are skyrocketing!
The next video documents the potential (real life) for cost savings, if we can simply get the government and its mandates out of the health care business.
Obviously the first and major problem is the Affordable Care Act with its mandates for coverage that has no business being included in most of our insurance.
The second action needed is to eliminate the tax advantage to individuals and business for employer provided insurance. This seems wrong, but the fact is that this advantage encourages companies to provide coverage that is wasteful. There is little incentive to find lower costs since much of the cost is simply passed on to the tax payer.
If we want to see health care costs come down we must minimize the mandates and get the individual to take responsibility for their costs.
We must get the ‘free market’ back into health care.