Monday, November 16, 2009

Reducing Costs (of medical care) through Freedom

Can we restore freedom and cut costs by 50%?

Dr. Jane Orient, MD answers Yes, and introduces how.

A few of the topics she touches upon:

1. The difference between costs and expenditures:
Current health care reform plans will increase costs (extension of third party payer system, increasing government bureaucracy) and will try to control expenditures through wage and price controls, caps on supply and penalties for "necessary services."

2. What is insurance?
Not a guarantee of medical care, mark of civilization, promise to pay for medical care or a method of decreasing costs, but a means to manage risk.

3. On what are insurance premiums based?
Not need, fairness or income but RISK.

4. Insurance is voluntary. Socialized medicine is compulsory.

5. The unnecessary increased in costs caused by government interventions: taxes, bureaucracy, regulations.

6. Examples of less expensive medical care through free market processes.

7. Unfunded Medicare and Social Security liabilities are approaching 100,000 trillion dollars. No debt that size has ever been repaid.

HT TakeBackMedicine

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