I don't know if there is any solution except for total reform...any ideas?
Sure, plenty of them, none that are very popular.
The increased simplicity helps keep medical costs down. A reason medical costs are so high is because of the cost and time needed in dealing with many different insurance providers and policies.
"A reason", yes, but you're talking about an unsubstantial reason. It adds a couple pennies per dollar, this is hardly cause to nationalize a health system.
There is only one substantial reason that health care costs are rising:
- It is the ONLY product or service to which everyone has unlimited "rights" to access. This "right" is merely a feat of altruistic logic, it is not a constitutional right, nor is it in the vast majority of states a statutory one. A hospital could deny you life-saving care because you were unable to pay for it, and in most states, legally no crime would be committed, nor would they have violated your "right", so long as they didn't violate your civil rights by denying care because you were black, Catholic, a woman, etc.
However, the hospital would face a civil lawsuit, and the chances of losing that civil lawsuit are overwhelming. The award would in all likelihood surpass the costs of treating the person to begin with many times over. The consequences of this 'imaginary right' to unlimited health care are obvious and inevitable.
Let us suppose there was similarly an "imaginary right" for me to have as many automobiles as I want on demand, and automobile dealers HAD to give me the car whether or not I could pay for it. Technically, I would still be liable for the cost of the vehicle, but I could drive the car off the lot without paying for it. The dealer HAD to let me take possession of the vehicle, he couldn't demand payment as a condition to receive the vehicle.
Further, let us suppose he couldn't repossess the vehicle if I didn't pay. No matter what, that car is mine and nobody can take it away.
Guess how many cars I would have? Oh, I'm guessing, about 500 by now, and I wouldn't have paid a penny for them. The bill collectors can just kiss my ass, I've got better things to spend my money on, like MTV, Burger King, going to the movies, cellular phones, keeping my self in the latest 'fashions', and abusing my cars so I can get another.
But wait, there's more!
Let us further suppose that my "imaginary right" extends beyond used cars. In fact, my "imaginary right" actually forbids car dealers to provide me with older, used cars, that aren't every bit as good or 'desirable' as new cars. Of course, nobody wants old cars, they want new cars that feature the latest technology - very expensive technology.
But wait, there's more!
Let us still further suppose that I went to the dealer for a car and he 'sells' me a Chevy. I drive it home and notice that my neighbor has been provided with a Mercedes by the same dealer. I stroll over and ask "How come you got a Mercedes and I got a Chevy?" My neighbor responds, "I don't know, maybe because I had the money for a Mercedes up front?"
Now I can sue my dealer for failing to provide me with the latest and greatest automobile that he is providing to others, merely because they can pay for them up front and I cannot. I could go on, but you get the idea.
It does not take an economist to see that the natural and logical consequence of everyone having such an imaginary right would be the ultimate collapse of the automobile industry. There wouldn't be a car manufacturer or dealer in existance very long, unless...
Unless the government subsidized the losses suffered by the automobile industry, compensating it for what it lost to those who either "couldn't" pay for their cars, but more likely just decided not to because nobody can force them to. However, the government doesn't cover all of the costs, the subsidy is only intended to reduce the burden on auto manufacturers and dealers, not to eliminate it.
On a $100,000 Mercedes, the government will only reimburse $60,000. The automotive industry must still 'absorb' $40,000 of this loss, which means shifting it to other "paying" customers. After 20 years under such a system, that $100,000 Mercedes will now cost $300,000, much of the increase attributed to this cost-shifting.
What is the cure? There is no cure! If you continue to enforce an "imaginary right" to automobiles or health care in this manner, the result is the same - collapse of the system - only by subsidizing it, you've postponed this inevitable result.
The difference is one of death by gun or smoking, although one takes 50 years longer, the end result is identical, except dying from lung cancer will prove to be the more painful fate.
For those who live in countries that are ALREADY subsidizing their national health care with 50+ percent income tax rates, things may look superior by comparison. Wait until that 50% income tax rate becomes 65%, then becomes 75%, then 85%, and if you believe that won't happen, you're a fool.