"If you think healthcare is expensive now,wait until it's free" -- P.J. O'Rourke
In my lifetime healthcare costs have gone up dramatically ... and pundits have proffered multiple solutions for this problem. To this observer, the reason for this inflation seems obvious -- the insertion of intermediaries in the providing of medical care.
In my youth, when you were sick, you went to the doctor and paid his/her bill when you left. Then insurance companies stepped into the middle of this process and, as a result, a new set of administrative overheads and profits were required on top of the doctors'. Next came the HMOs which also heeded at least to pay for their high-powered administrators. Lately, even groups of HMOs are adding even more administrative costs to this process .... in order to "save money."
Finally, the Obama administration had an inspiration in its attempt to "bend down the healthcare cost cutie" -- add yet another layer, Obamacare!! And now Amazon, Berkshire Hathaway and J.P. Morgan want also to get into this Conga line to solve our spiraling costs of healthcare ... see: Yahoo Finance Story. Sure! Is this not just another set of palms to be greased?
The result of all this intermediation? An enormous crowd of non-doctors standing between the actual doctors and their patients ... all with their hands out. And we wonder why healthcare costs keep going up?
Cummon people! The answer to spiraling healthcare costs is disintermediation. Get rid of all these non-medical middle-persons. But there is a problem with this solution -- it is almost impossible to do. All these middle-persons would be lobbying their politicians to keep things as they are ... and probably will win.
Did you read that story? They want to do this for their 500,000 employees. Just as large corporations often self-insure their property and vehicle liabilities, these guys can certainly cover their employees health liabilities. Besides, Amazon is itching to get into the pharmacy business so they can put leverage on drug manufacturers to lower costs. Amazon certainly knows distribution. And now they have bricks-and-mortar with Whole Foods.
ReplyDeleteI guess the point is that these three businesses together do not need financing or lobbying to move an agenda in their direction.
Another "solution" that relies on the fox to improve security around the hen house. Ain't gonna happen. Aside from that, Healthcare is much better today than it was when Dr Jones came to the house with his little black bag. BTW, I am in favor of good doctors getting rich. Not insurance Company execs.
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