Loyal readers already know that health care spending was proceeding moderately until the advent of Medicare and Medicaid. Amy Finkelstein showed that in the first ten years Medicare had no impact on the health of the elderly. And fifty years after the fact, we are still arguing about whether Medicaid affects the health of the poor. Yet this massive infusion of federal spending fueled health care inflation that has been barreling along ever since. The same thing appears to have happened in education. According to economist Richard Vedder, the explosion in college costs began about the same time as the cost explosion in health care ― with the Higher Education Act of 1965.
A primary care physician by training, my passion is researching and writing about maintaining patient-directed choice in medical care, supporting independent physicians, promoting free-market healthcare solutions and seeking sustainable fiscal policy in healthcare.
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