the price escalation of healthcare began in earnest by government involvement with medicare and…
Hoss Hoss

Medicaid and Medicare created a “necessity” that spawned price hikes? It may come as a surprise to you to learn that being mortal and of the flesh means that healthcare has always been a necessity — the luxury is actually getting it effectively and in a timely fashion.

And as for the government cash cow: True enough that public subsidies have created a cash hoard of relatively unlimited means, but it’s no different than the private insurance markets. High premiums paid to private insurance companies by healthy persons have generated equally large cash hoards — and in fact, larger still by way of policies which prevent payouts and failure to cover the truly sick. At least government spending places more conservative caps on payouts.

There will always be a need for subsidies and cash hoards from which to pay healthcare providers — especially for those in poverty. Proposing a shrinking of cash hoards by cutting off public subsidies won’t drive prices down because demand will never truly be quelled (people seek emergency services whether they have insurance or not, and public and private monies get spent either way through loss of human capital and productivity).

The author is right. Changing who pays only won’t solve the issue. Restricting access to insurance and healthcare won’t solve it either. We must change the fundamental system by which we address health so that we incentivize better health for all — not merely bandaids in waiting for the moment of crisis.