[quote]Lorisco wrote:
You still don’t get it Bro. It is called competition.
If you have a service you are trying to sell and someone comes and sells that same service for less, people start to use the cheaper service instead of yours. Then at some point you are out of business. This is called the market rate.
In healthcare there is no limit on price and hospitals and other service providers set their price based on RVU’s (Relative Value Units). And the thing is that there is no standard for RVU’s. Each service can and does make up what they feel they should change with little rationale behind it. The only guideline is that you cannot control the market by working with competitors to control the price.
Most services don’t care if their price is higher than the competition because it is only the insurance company that pays the bill. Insurance companies try and contract with hospitals and services to control the price, but it doesn’t help that much.
Now if the consumer of these services had to pay for them directly they would go to the cheapest place and soon prices would drop due to competition. Basic!
And no, insurance did not come into play because of the high healthcare costs. People have been paying for health care themselves for thousands of years. And services provided in socialized systems today do not cost anything close to the cost of a market system.
So the bottom line is that services are priced based on what the market will allow and with insurance paying for it the cost will always be high.
The one thing in your post that is correct is that the high cost is partially related to the potential for making big money and venture capitol new technology. Because there is potential to make big money, companies put big money into R&D. So that is why the US is the leader in new and innovative medical technology. If there was no chance for a big payout, new technology would be very slow in coming.
But the problem is that people in the US expect the latest and best healthcare technology and yet want it affordable. Well, that just isn’t going to happen. Because if we had a one payor government system, which would pay much less than the free market, there would not be new cutting edge medical technology. Or not very much, because there would be no profit in it and no reasons to put a lot of money in R&D when they would never get it back.
So we cannot have a government run healthcare system and still maintain the high level of cutting edge healthcare.
Ok, School is out young man. Now drop your sisters leg and go eat something.
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You are correct that if everyone got together and said “OK, we’re not going to pay a lot for healthcare anymore,” that the price would go down. But that completely ignores the fact that the level of healthcare would go down. That’s just economic fact. Your previous post makes it sound as if we can just pay less for the same level of healthcare, which is not going to happen unless there is a change on the supply side of the equation, not the demand side.
The funny thing is that you rebuttal yourself for me in the second part of your post. You completely invalidated your own claims by finally acknowledging what the demand side is made up of.
You want cutting edge healthcare? Deal with the insurance companies cause that shit’s expensive.