Forum Post: THE HEALTHCARE CRISIS: A Crisis of Artificial Scarcity
Posted 12 years ago on Nov. 9, 2011, 10:26 a.m. EST by darrenlobo
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“Grocery insurance” is a popular analogy among free market advocates, for explaining why third party payments eliminate price competition and contribute to medical inflation: when your insurer only requires a small deductible for each trip to the supermarket, you'll probably buy a lot more T-bones.
Unfortunately, what we have now is a system where the government, Big Pharma, the license cartels, and bureaucratic high-overhead hospitals act in collusion to criminalize hamburger and make sure that only T-bones are available, and the uninsured wind up bankrupting themselves to eat. A lot of uninsured people would probably like access to less than premium service that they could actually afford.
And despite rising deductibles and copays—exactly the kind of incentives the libertarian “grocery insurance” critics would regard as ideal for encouraging frugality—low-cost alternatives are simply unavailable in many cases.
A central problem of all the healthcare reform proposals circulating in Congress is that they focus almost entirely on finance—giving the uninsured the wherewithal to buy insurance and otherwise increasing insurance coverage to pay for healthcare—without addressing the cost of healthcare itself. But if healthcare itself were cheap, much of the debate on finance and insurance would be moot.
Yes it is a vicious cycle. There is fee/cost abuse by Insurance providers, Pharma and care providers. They feed each-other in cycling up the cost each in their own area. One thing that should be done is to charge the executives in each area with depraved indifference leading to death when services and drugs that are available are not provided. In Pharma's case there are drugs which provide cures to terminal illnesses that are not provided/made anymore because they are not profitable enough or there are currently not enough people dying to make it worth there while. Insurance executives could be charged the same for denying life saving treatments because they are to expensive. Hospital executives could be charged the same because they denied treatment due to lack of insurance money.
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Contact the Supreme Court: http://www.supremecourt.gov/
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