Nebor
Lifer
- Jun 24, 2003
- 29,582
- 12
- 76
Originally posted by: Excelsior
Originally posted by: Nebor
Originally posted by: RightIsWrong
The key phrase in your post was "just about". There are clear examples where the private sector can do and does a worse job than the government. Public utilities, roads, policing, space exploration, fire rescue services and the military for example.
As someone who takes a special interest in the economics of public goods, let me point out a simple fact: a doctor is not a public good. He is his own person, who gets to pick and choose his patients as he chooses, and go home at whatever time he pleases. He can only treat one person at a time, and makes a conscious decision between treating each successive patient and going home to do something else. A doctor is different from a police officer, or a road, a soldier or a space shuttle.
There are serious free rider problems associated with making health care a public good. And attempting to fix those problems creates serious problems concerning our personal liberties.
Like it's been said numerous times in this thread, health care is a scarce good, and thus it must be rationed. The most efficient way to ration it is in a free market. The least efficient way to ration it is through the inherent administrative inefficiencies of government intervention.
I used to think like this, but its simply untrue. Taiwan spends a fraction on the administrative costs that we have here in the US. I believe ours are around 15 percent:
By consolidating so much ? one government plan that covers everybody ? Taiwan achieves remarkable efficiency.
Everybody here has to have a smart card to go to the doctor. The doctor puts it in a reader and the patient's history and medications all show up on the screen. The bill goes directly to the government insurance office and is paid automatically.
So Taiwan has the lowest administrative costs in world: less than 2 percent.
http://www.npr.org/templates/s...y.php?storyId=89651916
It is remarkable how efficient it is, but you also have to consider the type of government in place in Taiwan. What do you think it entails when the "Bureau of National Health Insurance" comes to have a "little chat?"
That article serves to point out the unbridled consumption problem of UHC (solved by the Taiwanese with visits from scary state officials.) And also the fact that the system is too expensive for them to afford. They're borrowing money to keep it going.
I do admire their system overall though. Very efficient, high quality care, while still maintaining a private health care industry. Though I imagine prices for services must be dictated by the government.