Source: Paul Ryan’s new Medicare plan could be tip of the iceberg (+video) – CSMonitor.com.
A parallel factor is rising income. As a society grows richer, it tends to spend more of its income on health care. Add in demographics (an aging population) and a lack of competition among health-care providers in many markets, and you have a recipe for more people to consume more health-care services at higher prices.
For once I am not going to comment on Mr. Ryan’s seemingly enthusiasm to balance his budget on the backs of the poor while asking for increases in our bloated military budgets and more tax breaks for the rich. That continues to be insane to me but is not the focus of this particular post. Instead this post is about fixing Medicare and Medicaid. The quote above is at the end of this news article but says much about how some view the problem of spending our healthcare dollars.
The quoted argument seems to say that we choose to go to doctors because we can. I don’t know about you but I don’t sit down in the morning and try to decide whether I will go to the mall, the park, or to the doctor that day. I go to the doctor when I am sick or have what I think might be a serious medical problem. I don’t use doctors as a form of entertainment! Yeah, I know about the hypochondriacs out there but I hope they are a very small group.
Of course the quote also deems that the lack of competition is the cause for increasing prices for healthcare. We just don’t have enough McDoctors and McHospitals around yet I guess. Maybe I am naive about all of this but I kind of believe that competition is more of a cause than a solution. When Hospital “A” gets the latest multi-million dollar piece of medical equipment then Hospital “B” has to get it too so they can compete. It doesn’t matter that one machine could provide all the tests needed by the community. It doesn’t matter that hospitals will use the machines where they really aren’t necessary because they have them.
If we really want to get our healthcare costs down we need to do what the rest of the world already knows and that is a single payer regulated system. We spend more than twice as much as everyone else and actually live shorter and less healthy lives. It continues to amaze me how we in the U.S. fail to understand this very basic approach to healthcare.

