Download Crisis of Abundance: Rethinking How We Pay for Health Care by Arnold Kling PDF

By Arnold Kling

America's well-being care problems stem principally from a superb luck: glossy drugs can do even more at the present time than some time past. the matter is find out how to pay for it. In effortless to appreciate prose, MIT-trained economist Arnold Kling explains larger methods of financing healthiness care by means of depending much less on govt and extra on deepest discounts and assurance. A must-read for healthiness care reformers.

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Additional info for Crisis of Abundance: Rethinking How We Pay for Health Care

Example text

Still another narrative is that people without health insurance ‘‘free ride’’ by obtaining health care on an emergency basis, with the cost borne by taxpayers or by higher prices set for insured patients. However, neither drug company profits nor malpractice costs nor ‘‘free riding’’ amounts to even onehalf of 1 percent of GDP, when total health care spending is 15 percent of GDP. Malpractice litigation probably exacerbates the use 30 Three Health Care Narratives of premium medicine by encouraging defensive medicine.

It is not true that health care is a black-and-white proposition in which services are either utterly necessary or else utterly unwarranted. ’’ Services that fall in the gray area are services that offer some benefits but which are not absolutely necessary. It is possible to illustrate the gray area in quantitative terms, based on the relationship between benefits and costs for a health care service. Consider Table 3-1, which offers a classification scheme for a service that costs $100: The figure of $100 is just an illustration.

We may never 47 CRISIS OF ABUNDANCE: RETHINKING HOW WE PAY FOR HEALTH CARE have a true single-payer health care system in which all health care is paid for by the government. Instead, some consumers may seek treatment that goes beyond what the government will provide. This might lead to a health care system that looks somewhat like our primary education system. Parents who are particularly wealthy or demanding choose private schools over public schools. Similarly, we can expect that many consumers and doctors will be reluctant to accept restrictions on access that are imposed under a governmentrun health care financing system.

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