Let's really reduce the cost of healthcare
We all know something is very wrong with the cost of health care in this country. But is the answer more bureaucracy or less?
There are some laws and regulations which already hamper the healthcare industry’s ability to deliver affordable care. Only time will tell how the new federal law will pan out.
As a fiscal conservative, I am worried about the economic and regulatory path this nation is on, not only in healthcare, but in just about everything.
It seems to me we should be focused on reducing healthcare costs by eliminating the rampant fraud, waste, abuse, and frivolous lawsuits that are known to cause increasingly unreasonable and unpredictable prices.
Recently, a local healthcare administrator reported there is “only” $200 million worth of fraud in our state’s medical industry every year. While he insisted that wasn’t bad, I couldn’t help but wonder how many Montanans that $200 million could help.
Next week in Plains a free workshop called “Surviving Obamacare 101” will be hosted by Americans for Prosperity. Expert economist Joe Balyeat will offer a frank discussion on the new health care law including related penalties, how to qualify for an exemption, hidden taxes, the long term costs for students and young adults, whether it is more affordable to not comply with the mandate, and the adverse impact Obamacare and Medicaid expansion are expected to have on Montana in the long run.
The meeting will take place 7 p.m. Wednesday March 5 at Plains Bible Chapel, 8 E. Combest Rd, Plains, MT. I will be there to listen in on the debate and hear from citizens too.
There is no question many committed employees do an amazing job in the health care industry. People and businesses who provide good services should be rewarded by wages and profits commensurate with what customers are willing, and able, to pay. We need them to stay in business.
But the industry and the government have got to get serious about stopping the fraud, waste, and abusive overcharges or it’s not going to get better.
Another factor that drives costs up is that consumers have no incentive or reward for being wise shoppers. Under our current system, it is difficult to find out how much a medical service is going to cost, and few people even question it because somebody else is going to pay for it anyway. i.e. Medicare, Medicaid. or insurance.
My elderly father was recently confined to a wheelchair. Dad’s doctor prescribed a special seat cushion so he wouldn’t develop bedsores from sitting in one place so much.
From Dad’s perspective, Medicare was great. They covered the cost of the $400 seat cushion without question. But I had to ask, “$400?” It looked like the typical stadium cushions you can buy for $10 or $20 at sporting goods stores.
I said, “I know you’re worth it dad, but c’mon. What’s so special about this seat cushion that it cost $400?” As I picked it up to search for a reasonable explanation, we both sort of shrugged our shoulders. It had a medical company label sewn on. It must be filled with some special, “medical” foam, right?
We unzipped the covering, and you know what we found? This $400 cushion was made of the same standard upholstery foam used in camping pads and sofas!
No wonder prices are so high. They charge those fees because we allow it. In fact our system encourages it.
Without sensible reforms, pouring billions of dollars into government funded programs which are already fiscally irresponsible and economically unsustainable will not solve the problem. In fact, the more government has gotten involved in funding healthcare, the more costs have got out of control.
If industry and government would begin to genuinely work together to eliminate fraud, achieve fair and transparent pricing, allow customers to shop wisely, and promote healthy life choices, we would see lower costs and a healthier society. That is something I would be glad to support.