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April 15, 2005

Comments

I don’t understand why people are so attached to the model of all doctor visits being paid for by insurance.

I totally agree. I'd love to see my employer provide such a plan. I'd sign up given that me, my son, and wife rarely go to the doctor. Overall we are fairly healthy. At the same time this could lower the benefits portion of my compensation. With a competitive labor market economic theory suggests that this would raise wages. Funny, how this (stagnant wages) is something the Left points too and wrings their hands (see Matt Yglesias' post on this), but a solution like this rarely surfaces (Matt probably spent too much time reading Sarte).

I don’t understand why people are so attached to the model of all doctor visits being paid for by insurance. The healthcare system would be so much more efficient if there was free market competition between healthcare providers. High deductible insurance would still be there if you got really sick. That’s the real purpose of insurance: to pay for what you can’t afford.

Health insurance providers make money by denying payment, not by making payment. (That's why a quarter of health care costs go to paper pushers and phone answerers.) So what makes you think they'd suddenly decide they wanted to pay claims under high-deductible plans?

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