The more I look into our American system of providing healthcare, the more convinced I am that almost all Americans would be better off with a minimally-regulated fee-for-service model wherein we pay the provider out of pocket for services rendered. Providers competing for business would have incentive to find less-expensive and more-efficient methods of providing their services, leading to better healthcare at a lower cost. Assistance would still be needed for the indigent and those facing catastrophic expenses.
Right now almost every aspect of American healthcare is regulated on both the federal and state levels, often with layers of overlapping rules. These rules artificially restrict the supply of medical professionals, medical facilities, medical devices, and pharmaceuticals creating shortages that need not exist and artificially driving up prices. With most medical care in the U.S. being paid for by the federal Medicare and Medicaid programs and most of the rest through employer-provided “insurance”, providers are rewarded for incurring the maximum level of inefficiency and cost that these programs allow. We have become so accustomed to third-parties intervening between patients and providers that we have trouble imagining a system where the provider actually works for the patient.
Human beings require certain things to survive and thrive, including breathable air, drinkable water, wholesome food, clothing and shelter. With the exception of the air, which is thankfully still free, all of these necessities are adequately and efficiently provided on a fee for service basis, with assistance available for the indigent and those facing catastrophes. Healthcare is less essential than these goods and could be adequately provided in a similar manner.
Posted 2021/03/14