Tuesday, February 23, 2010
This is why (among other reasons) promising to cap health care expenditures at 20% of GDP is fantasy.
The great Dr. Rothman alerted me regarding the hypothesis described below in the NY Times link regarding health care expenditures. If the "cost disease" is so, and I believe it is, then any future cost savings, it seems to me, will have to come from demand-side factors, namely, making healthy lifestyle choices and outcomes economically desirable with real monetary incentives that persuade peeps to stop cramming so much crap in their pie hole. All of the proposed health care legislation from the House does nothing but have the government pay for continued poor choices. Anyway one should not promise things they can not possibly deliver. Thus I have given up all hope to join the Chippendale dancers. But we should not promise to cap the percentage health care is of GDP if it suffers from the cost disease. Here's why...