The Approaching Healthcare Disaster!

We are coming close to crossing the $3 trillion dollar a year level in US health care with no end in sight. The current cost of Medicare is about $600 billion dollars a year, far above the level of revenue coming in from the payroll tax. Medicaid under the ACA (Obamacare) will be at the same level. Add in the rest of our rising health care costs and the figure is heading towards the three trillion dollar level. This however doesn’t mean we’re getting what we’re paying for. There is a problem of medical fraud. There is a “gray zone” of “bill padding” just as big as the medical fraud problem. Then there is a great deal of medical waste, tests and treatments that are of little value. The total of this is somewhere in the 25% to 30% range. So in reality we’re getting two trillion dollars worth of medical care, and paying another trillion dollars out that disappears down the economic version of a “black hole”.  Had we been able to hang on to that trillion dollars, we’d all be about $3,000 a year better off.  The current estimated US health care costs work out to about $8,000 per capita.  Subtract the wasted $3,000 per capita, and we could enjoy our now present level of care for $5,000 per capita. Of course if we got rid of all of the monopolistic laws and regulations, we’d be able to knock at least another trillion off, leaving us with $4,000 per capita, along of course with a much better standard of living since we’d all be $4,000 a year richer!*

* Rather proves that a true free market in health really would pay off for everyone!

Unfortunately it appears we’re heading in the wrong direction…  Obamacare certainly is not going to reduce the cost of health care.  Nothing is being done to actually control the cost of health care.  Instead we are going to increase the cost of health care by elimination of any incentives to control costs.  And the money necessary to make health insurance “affordable” does nothing but raise the deficit. Which in turn reduces the value of the dollar.  This is why a dollar today won’t buy any more than a dime would have back in 1959. And the way we’re going pretty soon a dollar will only buy what a nickle would have bought back then!  Instead of introducing free market cost controls, establishing some real competition in health care, breaking up the “cronyism” that permits higher and higher costs, we’re proceeding down the same road we’ve been traveling to eventual bankruptcy.

I have given the solutions to this problem, but it requires repeal of prescription laws, deregulation, and the creation of a true free enterprise health care system to replace what we now have.  The major problem is that those who profit from our present system stand to lose considerable amounts of income should we remove the monopolistic aspects of our health care system.  Due to our “easy to bribe” political system, those who now benefit from the status quo have every interest in retaining the present health care system. It is likely that without a great deal of public support for “change” that nothing meaningful will be done.  Also, it appears likely that the other professions, aware of the consequences if the health care system is deregulated will fear that the same thing will eventually happen to them. That both of our major political parties will support retaining things as they are…

Still, one can hope that the inherent flaws in our existing system of health care will arouse sufficient opposition from the American people that something will be done to resolve matters…


About muskegonlibertarian

77 year old retired owner of a security guard agency. Member of the Libertarian Party.
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