The traditional “cost containment” approach is a poor idea:
A bad idea for dealing with cost is “cost containment.” What that means is cracking down on the prices and incomes of doctors, hospitals, and drug companies. Government attempts to do this run afoul of organized political opposition. Moreover, it is very difficult to implement heavy-handed negotiations on price without at some point stifling innovation and hurting quality. When it is allowed to operate, the market generally does a better job of cost containment. The example of laser eye surgery is frequently cited to support this in health care.
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Unfortunately, if there’s one thing politicians hate, it’s letting things that work well be what they are without interference. The appearance of activity is the most important thing in any ongoing politician’s hope for being re-elected. Any politician, particularly one that was elected by espousing populist or big government positions (as many unfortunately are), would far rather act first, and then read the legislation and worry about the consequences later.
“The example of laser eye surgery is frequently cited to support this in health care.”
The reason why the market has worked for laser eye surgery is because there are no third party payers involved. Once third party payers enter the arena, the “market” is gone. Now what you have is an industry market that leaves the consumer powerless and a healthcare industry with no incentive to reduce costs.
This is why universal coverage will never work; unless massive price controls are implemented.
As long as you talk about “health care costs” in the aggregate, the problem will continue to be a governmental one. When you start talking about the cost to the individual, and what the individual can afford or the family can afford, then it will become an individual rather than a societal issue.
Physicians, you can’t bitch incessantly about healthcare, and ask politicians to help you in one area, and then complain when politicians go sticking their nose in healthcare issues.
Particularly when you offer no realistic solutions of your own. Even Kevin’s favorite solution, the Mass. plan, is a government run fix.
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