Sunday, May 15, 2011

Healthcare Debate

According to the news, more than 50% of healthcare costs are being paid by the government now.  Unless we do something drastic, within 20 years, entitlement programs will cost as much as all the federal spending does now.  Some kind of program to contain costs needs to happen.  I believe that a free market approach to contain cost would be to shift to medical savings accounts where people make choices about spending.  (I think that the existence of third party payers encourages people to spend money.)   This will increase price competition in the medical field.  Barring something like that, we will be forced to a system where government dictates prices:  like a single payer system.  That is not my preferred choice, but  we are rapidly driving off a very tall cliff built out of debt.    This will force us to make some hard decisions. 

We can't keep doing what we have been doing.  We will run out of money.

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