If you substitute something we all buy every day, like food, for healthcare, it becomes easier to understand why healthcare costs are rising so quickly.
Your employee takes $12,000 out of your check per year and sign you up for a food plan. Your options are limited to a few restaurants and one large grocery store that you are covered at. Any time you go to these places, you pay only a small co-pay, say 20 dollars no matter what you buy.
A few things would likely happen under this system
You would be robbed of choice
You would buy more than you need, since the majority of what you will pay is already set.
Most of the restaurants you eat in and the grocery store won't even display prices, since the price is irrelevant to you
Since you do not care about individual prices most stores will jack them up, The people who run the food plan might argue but how would they ever figure out what the fair market price should be if the market itself lacks and competitive pricing?
Basically fixed price non competitive plans result in lack of choice, higher prices and over consumptions. That is just how our health system works and it's why it is collapsing.
Answer by itsmesteph11 at 7:33 PM on Apr. 21, 2011
Answer by wendydays at 7:33 PM on Apr. 21, 2011
Answer by judimary at 7:33 PM on Apr. 21, 2011
Answer by hopeandglory53 at 7:35 PM on Apr. 21, 2011
Answer by Proverbs_31 at 8:12 PM on Apr. 21, 2011
Answer by LoriKeet at 8:25 PM on Apr. 21, 2011
Answer by yourspecialkid at 8:31 PM on Apr. 21, 2011
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