Probably has more to do with "that giant sucking sound" from one way trade deals and a combination of burdensome regulation and the environmental lobby preventing growth in the manufacturing and supporting industries.
That, along with regulations regarding what must be covered by a health insurance policy, "free" benefits, and the like, driving up the cost of Healthcare is how we found ourselves here.
The first medical policies sold replaced the income the insured lost when they became ill and couldn't work. Then came the innovation of the insurance company paying the rest of the bill once you met a deductible. Next were "co-pays", with the co-pays counting against your maximum out of pocket expense. Each "innovation" removes the consumer another step from the cost of the care, allowing every provider in the chain to charge more for their services, which is the primary reason the cost of care has risen over 3x the inflation rate between 1999 and 2020 (224% is 40%).
If you can go see a doctor for "free", or for a flat rate of $25, you don't care how much the doctor charges for the visit. The doctor's cost is in part determined by the record requirements and other regulations, malpractice insurance, supplies, which have their own regulations, record requirements, and insurance costs, along with the cost of recruiting talent to work in the practice and the cost of providing "free" care. "Free" care was once an act of charity by the doctor, or the hospital, now it is a taxpayer provided charity mandated and collected via the force of government directly and indirectly via legislation, rules, and regulations.
Is it really any wonder why healthcare is now 20% of our GDP?
Good points. Healthcare procedures that aren't covered by insurance have been declining in price but still seeing the improvements in technology like laser eye surgery as an example.
Thomas Sowell: There are no solutions, just trade-offs.
