Suppose you could get insurance to fix your car (mechanical repairs, not fender-bender work).
And suppose your boss paid the premium for this insurance, not you.
How long would it take for an oil change to skyrocket in price from 20 bucks to 90 bucks?
How long would it take for a new clutch job to rocket from 700 dollars to 1600 dollars. Not only that, but you'd replace your clutch 4 or 5 times whether it really needed it or not.
Inflation would stack on top of itself like this:
Price for labor would increase.
Price for parts would increase.
More %26quot;procedures%26quot; per mile because it's %26quot;free%26quot;
No incentive to buy cheaper, remanufactured (generic) parts.
No incentive to wait until next year to get that tuneup that you really don't need
No incentive to rotate your tires to save the treads
No incentive to drive your car carefully - all the repairs are %26quot;free%26quot;Is this a good, simple explanation why Heathcare costs so much?You are on the right track with one of the reasons health care costs so much.
It's a little more complicated then that. Yes having coverage that allowed people to go to the doctor for very little out of their pocket caused them to take advantage. But that alone did not do it. You also have doctors that are paying exorbitant liability insurance premiums because of major lawsuits. Because the doctor pays more he charges more. In addition to that because he is so afraid of making the wrong diagnosis (and getting sued) he orders a million tests that are not necessary. This of course costs more money.
The there is the inefficiency of the medical system. If you go to 3 different doctors for 3 different things you could end up getting the same tests 3 different times. If all medical information was available in a database doctors could see your complete medical history with a click of a button and run only necessary tests. That would save millions of dollars.
Then you've got the point you are trying to make. People do not make educated decisions about their treatment because they do not have a financial stake in the game. Why should I care how many tests my doctor orders? It doesn't cost me anything. Why should I exercise and watch what I eat? There are pills that will keep my heart going...
Hope that is helpful.Is this a good, simple explanation why Heathcare costs so much?eh, not really. You cant really compare a car to a human being.Is this a good, simple explanation why Heathcare costs so much?I see that %26quot;U%26quot; r very upset...me too...[same probl.] The answer is that: %26quot;Go to a mechanical school and become an auto-mechanic%26quot;....problem solved.
