Health Insurance Articles

How Democrats are Adversely Affecting Progression of Health Care

2009-08-03

With the ever rising costs of health care in the United States, and the unfortunate fact that up to 40 million Americans have no coverage, it seems both prudent and necessary to follow the Democrats lead on health care reform.

It is often said that it is better to not do something at all, than to do it half-way. That though is what Democrats have been doing for the last three decades when it comes to health care in America. They have adversely affected the progression of health care reform through their support of quasi-socialist initiatives such as Medicare and Medicaid. These programs, while beneficial to many lower income families, and the elderly, have nonetheless helped create a Frankenstein health care system where there is neither a true free market, nor universal coverage.

Health care costs have risen over time, precisely because Medicare and Medicaid payments do not have to conform to the normal pressures of supply and demand. This is similar to what occurred recently in the housing market, where cheap credit allowed prices to rise significantly above traditional market rates. Essentially, if one provides the illusion of a “free lunch”, as the democrats have done with health care, then people will consume without regard to real cost, and suppliers will be happy to charge whatever they desire knowing no price is too high. Unfortunately, what happens is that those with private health insurance must keep up with the government's apparently unlimited pocket books and so everyone's rates go up, up to levels beyond the reach of many young people and lower income families.

This situation can be remedied by either adopting a single payer plan, where everyone is automatically enrolled, and the government can negotiate and fix prices for health care services, or by adopting a completely free market system, where only supply and demand affects the price of care. For example, in the plastic surgery field, where insurance rarely covers procedures, prices have actually declined over the last few years; similarly, with high tech vision correction procedures such as LASIK. Because there is no coverage, government or otherwise for these procedures, doctors are forced to actually compete for business and must continuously strive to lower costs and increase efficiency.

In the end, whether we go the way of Europe or try a more entrepreneurial approach, it is clear that we can not continue with this half-breed health care system which has all of the negatives of capitalism and socialism, with none of the real benefits of either.