Health Insurance is What Makes Health Care Expensive & Inaccessible
We received a $1,200 bill from a well check for our infant yesterday.
If I didn’t have insurance, how much would it have actually cost me?
In almost every situation, you can receive entirely different pricing if you don’t have insurance. That’s right, if you were to start the conversation with a health care provider with “What options do you have when people don’t have health insurance?” they could come up with a set of services at a much higher value.
Using health insurance for anything except catastrophes is the primary reason health care becomes inaccessible to people.
There are two sets of pricing in health care: Insured Billing and Non-Insured billing.
Think about that for a moment…. same care, but entirely different pricing depending on who’s paying for it, how can that be?
How much should health care cost? Only as much as the buyer is willing to pay.
We have a major problem in America, we are all being manipulated by special interests in education, government, health care, insurance, and a host of other crony organizations to keep us fighting around faux “solutions” to problems which ultimately benefit the special interests. Government bureacrats, insurance companies, and health care providers are the primary benefactors of eliminating the consumer from the decision making process in purchasing health care services.
Why is the discussion all about the “affordability of insurance?” rather than the affordability of care? THat’s because it’s purposefully being omitted because government and crony segments of business are benefiting. How do they benefit? More power, more influence, larger workforces, more subsidy, and bigger budgets.
Health care and higher education are experiencing catastrophic price inflation
When the consumer doesn’t get to look a vendor in the face, and make a decision with their own hard-earned dollars, the competition for the consumer’s dollar is gone.
When you compare the increase of college tuition and health care costs to the CPI index, or the average wage increase, they disproportionally higher.
Again – while the cost of care is increasing, all our mainstream media and political talking heads are yammering about is insurance – not health care costs. Insurance is what drives the cost of care up.
The same is true in higher education. Rather than talking about the horrific monopoly government has created with accreditation and government monopolized student lending, we talk about “free education.”
Subsidized health insurance such as medicare, the Affordable Care act, and medicaid, is what causes prices to skyrocket because it takes the consumer out of the equation to hold the provider accountable.
When the consumer is taken out of its powerful, decision making position, and replaced by an insurance company, prices increase.
If the consumer doesn’t use their own dollars, they don’t care about pricing. Also, when competition is hindered in any manner, the prices will start to creep up.
Before the affordable care act, we had a horrific system because our insurance companies had regional protections from competition. Because of regional bureaucracy and laws, insurance companies experienced monopolies due to the lack of national competition. If you sold insurance in one state, you often couldn’t sell insurance in others because of the requirements.
Is a health care provider ever standing in front of a customer and trying to convey the value they will provide in competition for business? NO
The basic problem with the health care system is that insurance pays the bills, not people.
When people stand in front of a vendor such as a clinic, and they are presented with an opportunity to purchase immunizations, they should have all the data they need in front of them to make that decision – such as pricing.
If we used our own dollars, we would IMMEDIATELY demand pricing sheets, and we’d shop around for the BEST VALUE in health care administration.
Insurance payment means we no longer care about the overall value we’re receiving.
Pricing and benefits determine value.
IN fact, value is tied directly to the supply and demand curves in economics.
As supply increases, pricing should go down. As supply shrinks, pricing should go up.
Some people may say that the burgeoning population is causing health care pricing to skyrocket – but this simply isn’t the case. As the baby boomer generation starts requiring lots of services in health care, and as the massive millennial generation is also requiring more health care services as they have kids and families, the capitalist system would simply grow an overall economic pie, where the demand for services would directly feed into the health care sector, providing greater job opportunity.
When the focus is all about removing the individual as the economic decision maker, you’re allowing the insurance industry to forget about delivering value.
Quality, Universality, and Cheapness: CHOOSE TWO
High Quality and Universal Health Care will be stupid expensive
Universal cheap health care will be of low quality
Cheap and high Quality cannot be administered universally – but the free market is the only one that can deliver it.
When we can’t look the doctor in the face and tell him to pound sand with her pricing, we’re ultimately neutered as a society.
A Rare Earth Mineral Containing Supercomputer (iPhone) is $900, but my Infant’s Well Check is $1,200?
Basic Health Care isn’t really that crazy, but the top tiered health care is.
What do i mean? There is no reason why it should cost an arm and a leg for me to get a doctor to check for the sniffles, a broken arm, or basic immunizations.
Bureaucracy of the FDA makes drugs super-expensive, a lack of tort reform means that providers and drug companies can be sued in massive class-action campaigns, and the litany of taxes, bureaucracy, and red-tape means that there are far too many administrators involved in health care (just like education).
If we allowed the market to price “less-proven” drugs, care from less-qualified people, we’d be able to CHOOSE with our own dollars and feet, what type of care we’d want.
As long as we don’t pay for our own healthcare, and we continue to rely on insurance, we’ll see the cost and quality of care deteriorate to an undesirable position.