Of Free Markets and Medicine

Many people take offense to the “Free Market” directing the cost of medicine. Many people also believe that healthcare and medicine should be managed through a Government agency and provided at no cost to the masses. The problem with this approach is, like with any expenditure, the costs of this system will be paid through an increased tax burden on society. While the approach still seems to be “ideal” to many, the reality is that it results in a less than efficient method of delivering health care.

Those who are fortunate enough to have health insurance have seen their premiums steadily rise over the years. The main issue resulting in these rising premiums is the fact that many individuals are seeking excessive treatment, and most have no regard to the costs of their sessions. Currently, Doctors are running clinics much like businesses – trying to maximize the number of clients they see within a given period of time. The amount of money they receive from Medicaid or Private Insurers does not vary regardless of the face time spent with the patient. On a recent visit to the Doctor’s when I was severely ill with some sort of Flu, Cold-like ailment complete with a severe sore throat, it seemed the best healthcare my PPO insurance could provide me was an hour long wait in the Doctor’s office and a 2-minute “shotgun” diagnosis of my ailment. This quality of healthcare may very well result in “repeat” business since the underlying disease may still exist and cause further complications. In my case, I was told it was a cold and I had to wait it out. On the contrary, it turned out I eventually needed antibiotics to overcome the disease. The current system doesn’t provide quality health care as it is, extending it to everyone doesn’t solve the underlying problem.

Healthcare costs have become excessive since there is no incentive for Doctors to develop a relationship with the customer. Many of them view a patient by the $100 allowance they receive from insurance. The same will be true if the Government extends a healthcare plan to its citizens – only we all will pay for and share in the inefficiency of our current health care system.

It is important to note the Genesis of the system we have today. The current healthcare system was established by Government in the 1970s through the HMO Act. It required all but the smallest employers to extend health care to their employees. When many had a healthcare plan, the abuses of the system began. Health Care costs increased steadily since, and it was all a result of unnecessary Government mandates.

In the system in place prior to the onset of the Act, Doctors had every incentive to maintain quality relationships with their patients since they were in direct employ of the patient and not the insurer or the Government. People who needed medical attention at the time would pay the doctor an affordable fee for their services. People who could not afford medical services would need to frequent the many charity hospitals and clinics that were open at the time. Since Health Care costs ballooned, many of the charity hospitals have had to shut down. And as a result, those who are self-employed or work for small businesses are now stuck in a precarious position – they neither have insurance, nor qualify for Medicaid and cannot afford medical care at today’s costs. Many of them dismiss the need to go to the Doctors altogether. Since the Government provides healthcare to only the poorest of the poor, lower income Americans have greater incentive to remain within the qualifying income categories to insure a continuation of coverage. Thus, the government has created additional burden on taxpayers and has caused people to remain dependent on the system. If Government extends coverage to all individuals who are currently not covered by any insurance, an instant “demand” to the health care system is created and healthcare costs will further rise as a result.

It is very difficult to “fix” our current system since it is a complex mess of government mandates mixed with certain elements of a free market system. The combined result is the worst effects of both systems – skyrocketing costs and less quality service. Many politicians have tried to tackle the issue only find that it is too complex and their “solutions” will cause tremendous harm further exacerbating the problems. People also need to realize that our healthcare system cannot be “nationalized” either – the Government cannot outlaw private healthcare other than its own and force Doctors to work in essence for them directly (Such as France, etc.). Therefore, a novel solution needs to be developed that drives down costs and increases the quality of healthcare we get in this country. No small task, but we need the best minds to start thinking of a viable solution.