Healthcare – Something Has to Give!
Healthcare benefits for seniors (Medicare and Medicaid) are already straining government budgets. Soaring healthcare costs plus the impending retirement of the “baby boomers” will make the situation far worse.
Attempting to cover the resulting fiscal shortfall by raising taxes would be like trying to extinguish a fire with gasoline because the growth in healthcare costs is being fueled – in large part – by government subsidization. Thus, consumers have come to view medical goods and services as a “benefit,” which they don’t have to pay for and should get as much of as possible.
SAFE sees no “silver bullet” solution to the relentless growth of Medicare/Medicaid outlays, but we doubt healthcare rationing is the answer. Indeed, the efforts of HMOs and/or the government (100,000 pages of Medicare regulations and counting) to contain healthcare expenditures have been resented and resisted. The most notable result of their efforts has been staggering compliance costs for healthcare providers and legal battles over alleged healthcare fraud. As an alternative to more of the same, we would offer three suggestions:
First, repeal the complex and costly prescription drug benefit for Medicare (enacted in 2004). In our opinion, the “Pill Bill” offers little if any real benefit for seniors.
Second, restructure existing medical insurance plans (both public and private), by (a) raising deductibles, and (b) requiring beneficiaries to pay their medical bills first and then seek reimbursement if applicable.
Third, cap punitive damage awards for medical malpractice, which are driving up insurance premiums and inducing doctors to order every medical test known to man whether needed or not.
Would you deprive people of needed medical services, critics may ask, because of the cost? Well, yes we would, if the alternative is national bankruptcy. Also, people who consume less medical goods and services will not necessarily be hurt.
It is common experience that drugs tend to be over-prescribed (perhaps by several different doctors, none of whom is aware of all the drugs being taken), medical procedures are employed in cases where they have limited if any benefit, and people overlook the value of regular exercise, adequate sleep, a sensible diet, etc. in staying healthy. For a provocative and we believe useful discussion of the less healthcare can be better thesis, see The Last Well Person, Nortin M. Hadler, M.D., McGill-Queen’s University Press (2004). Caveat: Dr. Hadler surveys a wide range of medical problems/ treatment options. For a balanced view, we recommend that you also consider the opinions of other medical professionals.