Tuesday, August 4, 2009

U.S. Health Care Costs, Simplified

Unfortunately, the debate in the U.S. about "controlling costs" of health care really means "controlling costs for consumers." If we only make health care less expensive for consumers without controlling the total costs of the system, we will have made little progress.

The U.S. spends much more per person on health care than any other country, yet our health outcomes (such measures as longevity and infant mortality) are no better.

Where does all that extra spending go? Consumers pay a lot, companies pay a lot, the government pays a lot -- to whom? To insurance companies, doctors, hospitals, drug companies, medical equipment companies, and all the other pieces of the health care sector who are sucking the rest of us dry.

The solution? Drop this charade of "health care reform" and instead focus on antitrust regulation. Break up the financial connections and market manipulation among insurers, doctors, hospitals, clinics, and drug companies.

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