Bloated Medical Costs

E-mail to Congress:
EIN News says, "Fight Over Health-Care Premiums Heats Up; U.S. Government Report Highlights Steep Rate Increases, But Insurers Say Changes Are Necessary As Medical Costs Climb. Over the past week, Democrats and WellPoint Inc., the country's largest insurer by members, have sparred over a 39% premium increase for individual plans by Wellpoint's Anthem Blue Cross unit in the individual market in California. At a news conference Thursday, Human Services Secretary Kathleen Sebelius cited more "extreme premium increases," including requests that insurers made to state regulators to raise rates by 56% in Michigan, 24% in Connecticut, 23% in Maine and 20% in Oregon. (wsj.com)".


Let's not get panicky. This was to be expected. It came about because the government previously told the public not to be concerned about medical costs. Such costs would be paid out of the public trough. To the average guy, this means free healthcare. He then goes to the doctor for a physical. The doctor says to himself, "This guy is in pretty good shape. It doesn't look like he needs anything special. On the other hand, why should I take the risk of having missed something and get sued for malpractice. I'll order some four or five special tests, involving MRIs, bone densities, adrenal functions, etc. I may also get a little cut on the costs of these tests, and in any event, I will be ingratiated to the testing community. The "patient" casually asks how much this testing will cost. The physician replies that it may run $8000-$10,000, but he also says, "not to worry", it will be covered by your insurance. The patient says to himself, "Yes. These insurance companies are fat cats, and they can certainly afford this. Also my government will make them pay, and if necessary government will pay for me".

With this kind of philosophy previously established by government and now rampant in the US, is it any wonder that private industries of testing and medical services will soak the highest possible fees that this sucker market is willing to pay? The medical industry is charging for services that are not necessary and at unreasonably high prices, because there is no customer control. That's free enterprise, and there's nothing wrong with it. Always pick the "low hanging fruit" first. Is it a waste? Yes. Who caused it? Government. It is a correctable? Yes. How? Have government remove itself from a God-like position of guaranteeing everything. Make people responsible for their own healthcare and payment thereof. If a person decides he needs 14 tests, he should pay for it. When he looks at the price, he may change his mind and cut it back to two. When this happens in total society, competition is in again in place and a reasonable supply/consumer arrangement is reestablished.