Posted in Access to healthcare, Affordable Care Act (ObamaCare), Consumer-Driven Health Care, Doctor shortage, Doctor-Patient Relationship, Economic Issues, Employer-Sponsored Health Plans, Free Society, Government Regulations, Health Insurance, Independent Physicians, Influence peddling, Leadership, Medicaid, Medical Costs, Medical Practice Models, Medicare, News From Washington, Organizational structure, Patient Choice, Patient Safety, Policy Issues, Prevention, Price Tansparency, Protocols, Quality, Reforming Medicaid, Reforming Medicare, Rule of Law, Tax Policy, Third-Party Free Practices, U.S. Constitution, Uncategorized

How Government Regulations Made Healthcare So Expensive | Blog | Mises Institute

DECEMBER 17, 2013 

download (13)“Those who cannot remember the past are condemned to repeat it,” declared philosopher George Santayana.  The U.S. “health care cost crisis” didn’t start until 1965.  The government increased demand with the passage of Medicare and Medicaid while restricting the supply of doctors and hospitals.  Health care prices responded at twice the rate of inflation (Figure 1).  Now, the U.S. is repeating the same mistakes with the unveiling of Obamacare (a.k.a. “Medicare and Medicaid for the middle class”).

Figure 1:  An Indexed Comparison of Health Care Inflation and Consumer Price Index in US from 1935 to 2009  (Source: US Census 2013) Nobel Prize-winning economist Milton Friedman wrote that medical price inflation since 1965 has been caused by the rising demand for health-care coupled with restricted supply (Friedman 1992). 

via Blog | Mises Institute.

Author:

A primary care physician by training, my passion is researching and writing about the importance restoring patient centered care, supporting independent private physicians, promoting free-market solutions and seeking sustainable fiscal policy in healthcare.

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