As Milton Friedman (1912-2006) said, “There is no such thing as a free lunch.” However one rationalizes it, Obamacare is eating the lunch of private health plans, who as stock-held companies beholden to investors, are responding by dramatically upping premiums by 20% to 30% overall, and 100% to 200% for individuals and some small businesses.
It is inevitable that health plans will raise premiums and drug companies will raise prices on drugs for non-seniors. When government pushes down on the health cost balloon, increased prices will pop out somewhere else. Neither health plans or drug firms are in the business of losing money or profits to please government. It is the structural nature and requirement of capitalism.
Anything is presumably possible when it comes to justifying slurs on one’s ideological adversary.
Nice try, but hikes in “quality” and drops in costs have yet to be “demonstrated,”no matter how rational they seem on the surface.
Perhaps these various rationalizations will ,in the end , clarify our thoughts about reform. May the strongest and most rational arguments win. The outcome will depend on political events, on how the public votes, on cost outcomes, on the level of the budget deficit, on whether doctors are available to provide necessary care, and whether one believes government or markets can best distribute health care services at an affordable prices in convenient locations.
Tweet: The U.S. is engaged in a great debate rationalizing whether government or markets can deliver what patients want out of the health system.