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Monday, August 30, 2010

Uncontrolled BS

"Democratic House campaign chief Chris Van Hollen was quoted saying Republicans are working on a plan to "abolish Medicare in its current form" and "throw seniors to the whims of the uncontrolled costs of the private-insurance market."

Costs are already uncontrollable because most medical payments in the U.S. are paid by the federal government, not by a private system nor the individual receiving the benefits. The incentives in health care seem out of whack since scarce resources are being used inefficiently and prices continue to increase. I find it amusing that markets with an absence of government influence--personal computers, semiconductors, the Internet, etc.--prices fall over time. In areas like breast implants and dentistry--areas of health care where government does not play--prices fall as well. In the markets with little government influence, scarce resources are used efficiently and prices decline over time.

Sure we don't want our seniors to suffer if they can't pay for health care services, and there are other solutions that won't bankrupt the country. However, Chris Van Hollen doesn't need to lie about the "uncontrolled costs of the private (health) insurance market" when the health care market is dominated by the public sector and costs are currently uncontrollable.

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