COST: Health Care Economics is Universal
Michael Tanner of the Cato Institute pointed out that health care costs are out control and spending, projected to rise from about 17 to 20 percent of GDP in less than a decade, is unsustainable. We agree. No health reform proposal will be sustainable without serious efforts to reduce costs and improve quality. However, because the uninsured are inextricably linked to the cost of care for the insured, we cannot solve the cost problem without covering the uninsured.
Think of it this way. The uninsured have a harder time paying medical bills. When medical bills go unpaid, providers—hospitals and doctors—need to find a way to recoup the lost revenue and raise the rates they charge insurers for services. The insurers, now faced with larger bills for enrollees, raise premiums. End result: the insured end up paying more for health care.
It is great to see candidates on both sides of the aisle talking seriously about cost-containment and a high-value delivery system and we cheer Tanner's conclusion: "Regardless of who becomes president, we can expect major changes for the American health care system."


