Seven Top Reasons for
High Health Care Prices
As Congress enacts the newest Republicrat version of health insurance improvement, it is important to note what it was exactly that has gotten our medical care system so out of whack in the first place.
It is a familiar ailment.
- In 1942 Congress made health care insurance for company employees non taxable unlike wages. Beyond the tax disadvantage
created for individuals seeking health insurance, this law left few reasons for companies to even offer policies to individuals let alone
- The creation of Medicare in 1965 eventually ended all need for private insurance companies to fund end of life medical expenses
for the vast majority of people, the biggest reason to have health insurance over a lifetime.
Super-imposing a single-payer for the elderly onto the private system creates distortions, like disparate compensation to doctors
and the practice of raising patient charges to blunt the effect of low Medicare reimbursement rates.
Worse, Medicare largely shifts the oversight of health care increases and fraud prevention from consumers and companies
spending their own money to federal regulators spending the taxpayers' money. The expansionary practice in federal budgeting writes
in an increase each and every year as a matter of right. A recent government study concludes as much as ten percent of the Medicare
budget is stolen largely through undetected, fraudulent billing.
- The same is all true of Medicaid/Social Security Disability entitlements.
Further, these programs all but ended the tradition of charitable hospitals that better served the poor than they are served
today and at far less expense.
- Instead of creating by insurance regulation a uniform mandate for the coverage to be provided by carriers, lobby dominated State legislators and bureaucrats impose piecemeal limits easily evaded by insurers in an endless game of litigation.
- Unlike just about any other business, a special interest fence is placed at every State border when it comes to providing health insurance. State laws typically all but eliminate choice among health-insurance carriers by excluding “foreign” companies.
- In a similar way, local health-care monopolies routinely overprice their services to the government and health-insurance companies
alike. Such a monopoly is empowered to set the standard it is to be paid by.
Not one of these ailments that distort a free market in medical services is remedied by the new federal law to be passed by Congress early this year. Instead, the grasp of the dead hand of government is expanded in important ways.
Is it time again for more government control in health care?