Seems to me it is more complex than that. How does the above work with artificially high prices, as exist presently in the health care industry? (I know of no insurance company which pays 100% of the asking price for any procedure; rather, they negotiate discounts and then pay a percentage of that negotiated price, leaving the remainder to the insured person).
Who says the prices are artificially high? Insurance companies try to pay out as little as their contract allows them- that’s just how they stay afloat. And the price fixing I’ve been talking about was Obama’s ‘affordable insurance’, where insurance companies are forced to set rates his administration likes.- I haven’t heard plans about fixing the prices on actual care.
Medicare negotiates the lowest prices of all. So there is already some form of voluntary price fixing if you will when caregivers sign up with Medicare (or any insurance company for that matter).
This is not equivalent to price fixing- and remember, many groups have opted out of medicare.
Since the insured does not meet the full cost of care (with good plans they only meet a small part), how would fixing the price change their use of health resources? Would the insurance companies pass on the reduced/fixed price to their customers?
The change will occur when more people enter the system- if everyone, or a large portion of everyone, who isn’t in the system now enters it, those in the system already will have to accept that they will be receiving far less health care, or have to sit on waiting lists.
It is not simply the laws of supply and demand at work here. The services an insured person purchases are most often not selected by them but by their physicians. Many of those services are provided by entities other than the physician recommending them and the cost is only a secondary concern (if at all it is considered).
It. Doesn’t. Matter.
If people want more than is available, there is a shortage. At present, our health care system is at or near capacity. More people will put it ‘over capacity.’
So the total dollar value of much of health care accessed by an individual is determined by someone who is only responsible for providing a part of it and who may or may not give a second thought to the cost. Are physicians going to change the way they treat patients, the number of tests they order or the types of drugs they prescribe based on the cost to the patient? Hardly likely, if that patient is insured.
The dollar value doesn’t matter- just the total amount of care available.
Lastly, much of medical care is not optional, so it’s not simply a case of decreased utilization with rising prices. That heart attack needs treated whether or not the price of treating it went up 30% last year!
And eating isn’t optional either- but when there isn’t enough food to go around, you have to make tough choices.
See what I mean about the complexity of it all?
No- it’s incredibly simple.
A certain number of doctors, hospitals, ect can treat a certain number of people
Tens of millions of Americans go untreated, by the statistics thrown around by reform proponents
Our health care system does not seem to have enough ‘slack’ to pick up all of those people.