Comments on: Public Option Lowers Healthcare Costs? http://www.inpursuitconsulting.com/blog/2009/10/30/public-option-lowers-healthcare-costs/ Where business leaders collaborate for greater success! Mon, 22 Feb 2010 22:59:22 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Bill Gschwind http://www.inpursuitconsulting.com/blog/2009/10/30/public-option-lowers-healthcare-costs/comment-page-1/#comment-722 Bill Gschwind Mon, 22 Feb 2010 22:59:22 +0000 http://www.inpursuitconsulting.com/blog/?p=314#comment-722 Thanks for the note. The key to remember, I think, is that lowering the cost of anything requires open market competition. Costs are reduced when productivity increases or excessive profits are reduced. Both only occur in a competitive environment. A single payer system only shifts the responsibility for paying the costs from the insured (or her employer) to the government reducing the incidents of competition and removing incentives to increase productivity and lower prices. IAt the same time, the bill before congress will bring more users of health services into the system while adding another layer of unproductive bureaucracy to the system. The result will be higher costs and less incentive to improve. On the other hand, opening the insurance market to interstate competition and putting each purchaser of health care in charge of their own purchases and use will create the incentives for the providers and consumers of health care to improve the system. The producers will be incented to increase productivity so as to better compete in the market and increase profits. Consumers will be incented to shop wisely, conserve their use of health care, and demand more from providers. Health care is no different than anything else we purchase. Image what we'd be paying now for cell phones if you could only access your service from the government-approved provider. Look at the difference between the way cable TV is provided compared with satellite TV. One is pure competition, the other is a government-licensed franchise without competition. Thanks for the note. The key to remember, I think, is that lowering the cost of anything requires open market competition. Costs are reduced when productivity increases or excessive profits are reduced. Both only occur in a competitive environment. A single payer system only shifts the responsibility for paying the costs from the insured (or her employer) to the government reducing the incidents of competition and removing incentives to increase productivity and lower prices. IAt the same time, the bill before congress will bring more users of health services into the system while adding another layer of unproductive bureaucracy to the system. The result will be higher costs and less incentive to improve.

On the other hand, opening the insurance market to interstate competition and putting each purchaser of health care in charge of their own purchases and use will create the incentives for the providers and consumers of health care to improve the system. The producers will be incented to increase productivity so as to better compete in the market and increase profits. Consumers will be incented to shop wisely, conserve their use of health care, and demand more from providers.

Health care is no different than anything else we purchase. Image what we’d be paying now for cell phones if you could only access your service from the government-approved provider. Look at the difference between the way cable TV is provided compared with satellite TV. One is pure competition, the other is a government-licensed franchise without competition.

]]> By: Kathy Allen http://www.inpursuitconsulting.com/blog/2009/10/30/public-option-lowers-healthcare-costs/comment-page-1/#comment-717 Kathy Allen Sun, 21 Feb 2010 16:43:56 +0000 http://www.inpursuitconsulting.com/blog/?p=314#comment-717 I am always looking for additional tips to pass on to others.Rxx Help I am always looking for additional tips to pass on to others.Rxx Help

]]>