Ilovebenefits’s Blog

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Maybe Health Care Cost is an Insoluble Problem

Here is are two thoughts to ponder…..

First with current insurance if you don’t like a decision by the insurance company you can appeal. If they deny it you can get an independent review. If it is employer sponsored you can often get your employer to intercede on your behalf. If you are not satisfied, you can then take it to the Courts. Then there’s the single payer system, or public option when the Federal Government denies your coverage who are you going to appeal the decision with?

Second thought and perhaps the most important, what if health care cost is an unsolvable problem? What if we got the waste out of the system, reduced incomes of health plan CEOs and doctors, capped profits — and we somehow kept all the providers in the business of providing health care — but trend continued rise at 2 to 3 times general inflation because new treatments, procedures and medical advances kept on coming, people lived longer and research to find various cures required larger and larger sums of money…we would be in the same state we are now. Health care inflation rising faster than incomes and revenue.

Maybe, just maybe, market supply and demand is at work here. We have an inelastic demand for health care and and a scarcity of resources so that the cost rises faster than other products and services.

No amount of health insurance, health care or just health reform is going to solve the cost problem.


August 19, 2009 - Posted by | healthcare | ,


  1. I truly do not think it is insoluble if put in the hands of those in the right state of mind. It has to be taken on a much lesser scale. Perhaps even making it possible to allow private insurance companies to market through out the country so there is less of a monopoly effect and more choices for the employers and employees.

    Comment by truthdetective | August 19, 2009 | Reply

  2. I tend to agree with the premise. After 47 years trying to control costs for my employer I have often said it is an unsolvable problem. We try to deal with health care as any other commodity and it is not.

    I think the folks in Washington agree. I was talking to several people yesterday who are drafting the legislation on the House side. They admitted “off the record only” that we are headed to forms of rationing with the comparative effectiveness work but would never admit that in public because they know the uproar it would cause. has more of my views on this.

    Comment by rdquinn | August 20, 2009 | Reply

  3. I truly believe that we will never make any headway on this issue as long as we have heavy government intervention in the health care marketplace. The mandates, misguided tax laws, etc. all inhibit true innovation which will be needed to drive many costs down. As long as people think that a doctor’s visit, or lab tests are free or $15 the providers will have no incentive to create less expensive alternatives. I think, rather than increasing government involvement, we should go the opposite direction and try consumer driven health. Some more details here:

    Comment by J Howe | August 20, 2009 | Reply

  4. The idea we are in crisis over healthcare is the same as any other crisis that has been used lately to ram pork legislation through. The difference here is not merely a $700 billion pork buffet, it’s a mix of Orwellian / marxist philosophy where an ever expanding government is attempting to control more of our lives. This bill and other currently circulating ideas (like ‘fairness doctrine’) are just another way our eletist leaders are trying to circumvent the constitution and gain control over our daily lives. While I don’t wish any suffering on anyone, I honestly don’t believe in a utopian / universal approach to healthcare. I also do not feel it is anything our government should be even considering. Allow restrictive laws governing health / insurance providers to be relaxed or removed, allow people to shop across state lines and reduce the numbers of frivolous lawsuits. Forget TOTALLY providing any illegals living here with free healthcare. Put the stolen money back into medicare / medicaid and social security.
    If we start here we may find we’ve eliminated most of the problems we are looking to solve.

    Comment by zoroafter | August 21, 2009 | Reply

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