Tag Archives: Service

Thomas Sowell explains the economics of cutting health care costs

The Democrats are talking a lot of about their plan to reduce the costs of health care. And they think that the way to do that is by having government take a bigger role in health care provision. Well, Thomas Sowell doesn’t like the idea that the government can reduce health care costs by using govenrment, and he’s written a four part series on it.

Here’s a quote from the first part about how Democrats attack the suppliers of health care products and services:

Despite all the demonizing of insurance companies, pharmaceutical companies or doctors for what they charge, the fundamental costs of goods and services are the costs of producing them.

If highly paid chief executives of insurance companies or pharmaceutical companies agreed to work free of charge, it would make very little difference in the cost of insurance or medications. If doctors’ incomes were cut in half, that would not lower the cost of producing doctors through years of expensive training in medical schools and hospitals, nor the overhead costs of running doctors’ offices.

What it would do is reduce the number of very able people who are willing to take on the high costs of a medical education when the return on that investment is greatly reduced and the aggravations of dealing with government bureaucrats are added to the burdens of the work.

Britain has had a government-run medical system for more than half a century and it has to import doctors, including some from Third World countries where the medical training may not be the best.

And a quote from the second part about how reducing costs means rationing:

There is no question that you can reduce the payments for medical care by having either a lower quantity or a lower quality of medical care. That has already been done in countries with government-run medical systems.

In the United States, the government has already reduced payments for patients on Medicare and Medicaid, with the result that some doctors no longer accept new patients with Medicare or Medicaid. That has not reduced the cost of medical care. It has reduced the availability of medical care, just as buying a pint of milk reduces the payment below what a quart of milk would cost.

Letting old people die instead of saving their lives will undoubtedly reduce medical payments considerably. But old people have that option already— and seldom choose to exercise it, despite clever people who talk about a “duty to die.”

A government-run system will take that decision out of the hands of the elderly or their families, and thereby “bring down the cost of medical care.” A stranger’s death is much easier to take, especially if you are a bureaucrat making that decision in Washington.

[…]You can even save money by cutting down on medications to relieve pain, as is already being done in Britain’s government-run medical system.

You can save money by not having as many high-tech medical devices like CAT scans or MRIs, and not using the latest medications. Countries with government-run medical systems have less of all these things than the United States has.But reducing these things is not “bringing down the cost of medical care.” It is simply refusing to pay those costs— and taking the consequences.

And a quote from the third part talks about free markets versus government price controls:

If you think the government can lower medical costs by eliminating “waste, fraud and abuse,” as some Washington politicians claim, the logical question is: Why haven’t they done that already?

Over the years, scandal after scandal has shown waste, fraud and abuse to be rampant in Medicare and Medicaid. Why would anyone imagine that a new government medical program will do what existing government medical programs have clearly failed to do?

If we cannot afford to pay for doctors, hospitals and pharmaceutical drugs now, how can we afford to pay for doctors, hospitals and pharmaceutical drugs, in addition to a new federal bureaucracy to administer a government-run medical system?

And a quote from the fourth part talks about equality versus liberty in health care:

What about insurance companies denying reimbursements for treatments? Does anyone imagine that a government bureaucracy will not do that?

Moreover, the worst that an insurance company can do is refuse to pay for medication or treatment. In some countries with government-run medical systems, the government can prevent you from spending your own money to get the medication or treatment that their bureaucracy has denied you. Your choice is to leave the country or smuggle in what you need.

However appalling such a situation may be, it is perfectly consistent with elites wanting to control your life. As far as those elites are concerned, it would not be “social justice” to allow some people to get medical care that others are denied, just because some people “happen to have money.”

But very few people just “happen to have money.” Most people have earned money by producing something that other people wanted. But getting what you want by what you have earned, rather than by what elites will deign to allow you to have, is completely incompatible with the vision of an elite-controlled world, which they call “social justice” or other politically attractive phrases.

What’s frustrating to me is how quickly people think of growing government as the solution to their problems. They don’t want to deal with paying for health care themselves. But what the government does to solve the high prices is fix prices and regulate the producers of health care, like doctors and medical device manufacturers. They make the supply smaller. But when the cost apparently goes down, people are signaled to use more health care. That makes the demand larger. And this is why there is a shortage of health care in countries that have health care provisioning highly regulated by the government.

You can even save money by cutting down on medications to relieve pain, as is already being done in Britain’s government-run medical system.

You can save money by not having as many high-tech medical devices like CAT scans or MRIs, and not using the latest medications. Countries with government-run medical systems have less of all these things than the United States has.But reducing these things is not “bringing down the cost of medical care.” It is simply refusing to pay those costs— and taking the consequences.

Videos explaining what government-run health care is like in Canada

Here are a few helpful videos of some Canadian health care horror stories.

The Cheryl Baxter Story:

A Short Course in Brain Surgery:

Two Women:

The Lemon:

And one more video from On The Fence Films called “Dead Meat“.

While you watch these videos, keep in mind that these people pay about half their incomes into a socialist system for thirty years. Usually, both adults in the family are working their whole lives to pay into this system. The money is spent by politically correct leftists on politically correct leftist research, such as polygamy studies. The politically correct leftist government grants taxpayer-funded treatments, for their preferred constituents, many of whom do not even pay into the system.

For example, things like breast cancer, in vitro fertilization, contraceptives, abortions, STDs, AIDS, drug rehabilitation and sex changes are well-funded by the government. But since men are politically incorrect in a feminist society, the mortality rate for prostate cancer, which only affects men, is abominably poor compared to countries like the United States. (See this article for a comparison of other health care outcomes).

The take home lesson for us in the United States is that this is a tremendous vote-buying scam. You will have ignorant but well-meaning Christians voting for the Democrats from the time Obamacare passes. Many Christians are typically ignorant of free market capitalism and do not realize that they are trading in their liberty and prosperity for “free health care”.

Christians rationalize their vote for massive government-run social programs as “compassion”, and try not to think about how they are really voting in favor of abortion, same-sex marriage and the end of religious liberty. I find it amusing to talk to Canadians who love free speech and single-payer health care, not realizing that the single-payer health care is the exact thing that sets a nation on the road to restrictions on free speech.

Even Canada is moving towards privatized health care

Here is a post from the American Power blog that cites an LA Times article entitled In Canada, a Move Toward a Private Healthcare Option. (H/T Blazing Cat Fur)

Excerpt:

When the pain in Christina Woodkey’s legs became so severe that she could no long hike or cross-country ski, she went to her local health clinic. The Calgary, Canada, resident was told she’d need to see a hip specialist. Because the problem was not life-threatening, however, she’d have to wait about a year.

So wait she did.

In January, the hip doctor told her that a narrowing of the spine was compressing her nerves and causing the pain. She needed a back specialist. The appointment was set for Sept. 30. “When I was given that date, I asked when could I expect to have surgery,” said Woodkey, 72. “They said it would be a year and a half after I had seen this doctor.”

So this month, she drove across the border into Montana and got the $50,000 surgery done in two days.

“I don’t have insurance. We’re not allowed to have private health insurance in Canada,” Woodkey said. “It’s not going to be easy to come up with the money. But I’m happy to say the pain is almost all gone.”

Whereas U.S. healthcare is predominantly a private system paid for by private insurers, things in Canada tend toward the other end of the spectrum: A universal, government-funded health system is only beginning to flirt with private-sector medicine.

[…]“What we have in Canada is access to a government, state-mandated wait list,” said Brian Day, a former Canadian Medical Assn. director who runs a private surgical center in Vancouver. “You cannot force a citizen in a free and democratic society to simply wait for healthcare, and outlaw their ability to extricate themselves from a wait list.”

Be sure and take a look at some of the videos I collected together detailing some of the horror stories.

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Hot Air and Michelle Malkin post new video of Michele Bachmann’s town hall

I am happy because lots of major blogs are saying nice things about my favorite representative Michele Bachmann. (You can see all my posts on her here)

In a new video from a town hall meeting, Michele slaps down an idiot heckler.

She starts out by trying to inform the audience of the perils of nationalizing health care, citing the recent story about the 4000 NHS patients who were denied hospital beds for giving birth. So they ended up having their children in all kinds of nasty places.

The Daily Mail wrote:

Tory health spokesman Andrew Lansley, who obtained the figures, said Labour had cut maternity beds by 2,340, or 22 per cent, since 1997. At the same time birth rates have been rising sharply – up 20 per cent in some areas…

‘It shows the incredible waste that has taken place that mothers are getting this sort of sub-standard treatment despite Gordon Brown’s tripling of spending on the NHS.

‘Labour have let down mothers by cutting the number of maternity beds and by shutting down maternity units.’…

The NHS employs the equivalent of around 25,000 full-time midwives in England, but the Government has promised to recruit 3,400 more.

However, the Royal College of Midwives estimates at least 5,000 more are needed to provide the quality of service pledged in the Government’s blueprint for maternity services, Maternity Matters.

At the same time almost half of all midwives are set to retire in the next decade.

Well, as soon as Michele cites this story, some silly heckler starts to babble something about how similar things happen in American hospitals, like the hospital in MN. So Michele immediately shuts him down with this: “I’ve given birth here probably more times than you, sir.”

Click through to see the video either on Michelle Malkin or on Hot Air. And notice the positive reactions from Michelle Malkin and Ed Morrissey.

Also, click here for a picture of Michelle Malkin AND Michele Bachmann. Aren’t they lovely?