Wednesday, January 25, 2017

Before the Federal Government Starts to Pay for Even More Healthcare (expanded)

Before the Federal Government starts to pay for even more healthcare shouldn't they attempt to remove incentives for state Governments to make healthcare less affordable?
Here is quote from Cato:
, further removing incentives for the states to make medical licensing and regulation more modern and rational shouldn't they remove some of the barriers to practice?

The federal government subsidizes demand for healthcare and the state governments restrict supply, which you would think would lead to higher prices.

Coincidentally as long as the federal Government is subsidizing demand, restricting supply is what you would expect state politicians to do if they were amoral ruthless maximizers for there states. (hmmm I do not think that they really are amoral ruthless maximizers but things tend to evolve is a biased direction). That the state politicians have an incentive to protect their Hospitals, Doctors and Nurses (maybe even insurers) from competition.

Here is an example of the AMA trying to keep completion from increasing.

As a case study, consider Utah is arguably the least corrupt state in the USA and healthcare sending in Utah is not that different from in the European countries that you mentioned (for schools also which USA spend more on). Washington DC on the other hand is off the charts. 

It is a state problem and should be addresses at the state level.
My solution to get the states to act is here.

No comments: