After discussing the status of health care with my three trusted economist friends and one equally-trusted public policy colleague, here is their employment advice for if health care reform doesn't pass and rein-in health care costs. If health care reform doesn't pass, those citizens capable of doing so should consider becoming doctors, nurses, radiologists, surgical specialists, hospital technical support staff etc. -- i.e. consider almost any job/position in or affiliated with health care.
The reason? With a market-based system in the United States, health care costs are going to rise in a big way -- they're going to go through the roof, as the Baby Boom generation retires and demand on health care providers increases -- increasing salaries in many health care job categories.
The economists especially like: senior care/elder care, due to the disproportionate increase in senior citizens, again due to the retiring Baby Boom generation.
Impact on citizens, U.S. taxpayer
However, there is a down-side to a market-dominated system amid rising demand: health care costs for Americans on the consumption end are going to rise at well-above-inflation-rates -- as they will for the U.S. taxpayer, as well, when Medicare and Medicaid costs balloon.
The above is an unavoidable by-product -- some would call it a major negative -- but market absolutists wouldn't. They'd say, 'Hey, that's the market system at work when demand rises: a massive increase in health care costs for Americans. You want health care? You pay for it. You can't afford it? Then too bad for you.'
The economists above have a more-sobering view: You want a market-based health care system? As the saying goes: be careful what you wish for - you may get it. Can you say $2,000 monthly premium for health care insurance and a $50 co-pay per prescription?
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Financial Editor Joseph Lazzaro is writing a book on the U.S. presidency and the U.S. economy.
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Reader Comments (Page 1 of 1)
9-08-2009 @ 10:45PM
WiiFatMarathonDotCom said...
Here's another thought:
If health care reform doesn't pass, do what you should have done in the first place ... get healthy!
We don't need health care reform, we need health reform!
9-09-2009 @ 4:19PM
Iridium said...
Joe,
In the free market what happens when something rises above the cost of what the people can afford to pay?
ONE OF TWO THINGS:
A) THE PRODUCER OF THE GOOD GOES OUT OF BUSINESS
B) THE PRODUCER LOWERS PRICES TO WHAT PEOPLE ARE WILLING TO PAY
THAT'S IT!!!!!!!!!!!!!!!!!!! IT'S THE LAW OF SUPPLY AND DEMAND.
There is no such thing as, well people can't pay so I am just going to raise prices for those who can pay. Eventually you end up with a situation where there are not enough people who can pay to keep you in business. Raising prices worked out really well for the Post Office.
The reason why health care costs have risen so dramatically; THE BURDEN OF PAYMENT HAS SHIFTED FROM THE INDIVIDUAL TO A SEPARATE ENTITY!!!!!
You don't care or question why it costs $6000 for a medical procedure if you only have to pay a $100 copay. You just thank god you didn't have to pay the $6000.
The hospital could never charge $6000 if the burden of payment was on the individual. 90% or more of the $6000 is just made up by the billing department anyway. There is no justification of the cost and therefore no reason for the expense. For the most part the actual procedure has gone down in real cost. We have far less mistakes and therefore less cost.
How about this:
IF YOU GROW TOMATOES IN YOUR BACK YARD AND KNOW HOW MUCH IT TAKES TO GROW THEM, WOULD YOU EVER PAY $100 FOR A SINGLE TOMATO IN A STORE?
WOULD YOU PAY $1 FOR THE TOMATO IF YOU HAD TOMATO INSURANCE THAT PAID FOR THE EXTRA COST JUST FOR THE CONVENIENCE OF NOT HAVING TO GROW IT YOURSELF?
WOULD YOU DO THE ETHICAL THING OF SAYING, I DON'T CARE IF I ONLY HAVE TO PAY $1, $100 FOR A TOMATO IS INSANE AND I'LL JUST GROW THEM MYSELF.
Most people would say $100 for a tomato is insane because most people know that it doesn't cost anywhere near $100 to grow a single tomato.
But what if the government said that nobody can grow tomatoes and has to buy them from a licensed seller. All of a sudden that tomato insurance looks like a good idea. But now the price of a tomato is $100 and the other $99 you don't pay has to come from somewhere. The base cost of growing tomatoes hasn't changed but it has become a hell of a lot more profitable to grow them. Now that everyone needs tomato insurance to buy tomatoes the insurance company can't afford to pay $99 for every tomato so they raise the rate of tomato insurance to $10.
That is health care and health insurance. No doctor can justify the cost of most of the care he or she provides. There is no way you can justify paying $100 to put your name in a book and $100 more to see a doctor for a sinus infection because you need antibiotics. The antibiotics only cost $15 and that is without insurance. It seems rather silly to have to pay $200 to get $15 worth of antibiotics.
Even if we have a massive increase in the amount of people needing medical care we have plenty of supply. THERE IS A HOSPITAL IN ALMOST EVERY SINGLE TOWN IN AMERICA TODAY!!! I have my choice of about 50 emergency rooms in a 30 mile radius of where I live.
Shifting the burden of payment to the government will increase costs by an unfathomable amount. IT WILL BE A BLANK CHECK FOR CORRUPTION. A THROAT CULTURE FOR STREP WILL COST $10,000. A HEART ATTACK WILL BE $1 million.
The government can either get the money to pay the cost or deny payment. The hospital will say that they will go out of business or have to deny care if they don't get $1 million for a heart attack. Because no Senator wants to have a hospital lobbyist running an ad that grandpa died because he denied payment to the hospital, he will make sure the bill is paid.
That is what is coming will government health insurance. We know the government won't be able to pay $1 million for a heart attack so they will just take over the hospitals. Then we'll get hospitals run like the Post Office and the DMV. Either way we're screwed.