We are incessantly being told that the cost of medical care is "too high"--
either absolutely or as a growing percentage of our incomes. But nothing that
is being proposed by the government is likely to lower those costs, and much
that is being proposed is almost certain to increase the costs.
There is a
fundamental difference between reducing costs and simply shifting costs
around, like a pea in a shell game at a carnival. Costs are not reduced simply
because you pay less at a doctor's office and more in taxes-- or more in
insurance premiums, or more in higher prices for other goods and services that
you buy, because the government has put the costs on businesses that pass
those costs on to you.
Costs are not reduced simply because you don't pay them. It would
undoubtedly be cheaper for me to do without the medications that keep me alive
and more vigorous in my old age than people of a similar age were in
generations past.
Letting old people die would undoubtedly be cheaper than keeping them
alive-- but that does not mean that the costs have gone down. It just means
that we refuse to pay the costs. Instead, we pay the consequences. There is no
free lunch.
Providing free lunches to people who go to hospital emergency rooms is one
of the reasons for the current high costs of medical care for others.
Politicians mandating what insurance companies must cover is another free
lunch that leads to higher premiums for medical insurance-- and fewer people
who can afford it.
Despite all the demonizing of insurance companies, pharmaceutical companies
or doctors for what they charge, the fundamental costs of goods and services
are the costs of producing them.
If highly paid chief executives of insurance companies or pharmaceutical
companies agreed to work free of charge, it would make very little difference
in the cost of insurance or medications. If doctors' incomes were cut in half,
that would not lower the cost of producing doctors through years of expensive
training in medical schools and hospitals, nor the overhead costs of running
doctors' offices.
What it would do is reduce the number of very able people who are willing
to take on the high costs of a medical education when the return on that
investment is greatly reduced and the aggravations of dealing with government
bureaucrats are added to the burdens of the work.
Britain has had a government-run medical system for more than half a
century and it has to import doctors, including some from Third World
countries where the medical training may not be the best. In short, reducing
doctors' income is not reducing the cost of medical care, it is refusing to
pay those costs. Like other ways of refusing to pay costs, it has
consequences.
Any one of us can reduce medical costs by refusing to pay them. In our own
lives, we recognize the consequences. But when someone with a gift for
rhetoric tells us that the government can reduce the costs without
consequences, we are ready to believe in such political miracles.
There are some ways in which the real costs of medical care can be reduced
but the people who are leading the charge for a government takeover of medical
care are not the least bit interested in actually reducing those costs, as
distinguished from shifting the costs around or just refusing to pay them.
The high costs of "defensive medicine"-- expensive tests, medications and
procedures required to protect doctors and hospitals from ruinous lawsuits,
rather than to help the patients-- could be reduced by not letting lawyers get
away with filing frivolous lawsuits.
If a court of law determines that the claims made in such lawsuits are
bogus, then those who filed those claims could be forced to reimburse those
who have been sued for all their expenses, including their attorneys' fees and
the lost time of people who have other things to do. But politicians who get
huge campaign contributions from lawyers are not about to pass laws to do
this.
Why should they, when it is so much easier just to start a political
stampede with fiery rhetoric and glittering promises?
Copyright 2009, Creators Syndicate Inc.