Why Is Healthcare So Expensive?

Why Is Healthcare So Expensive?



Healthcare costs are skyrocketing. Since the Affordable Care Act passed in 2010
health care costs have gone up by double digits each year. The health care bill did get more people insured
and helped with issues like preexisting conditions, but the problem with the healthcare law isn't
what it tried to do, it's what it failed to do: reduce costs. The solutions to the cost problem is with
the free market and competition. Here are just three ideas that could make
a huge difference. Number 1: We can roll back the tax burden
on insurance companies. The ACA added a $60 billion tax on health
insurers, which made them have to charge more to consumers to cover their costs. Taxes roll downhill so a tax on insurers means
higher costs for all of us. Number 2: We can lower the regulations on
health plans. The ACA has a lot of requirements that force
insurance plans to cover an incredibly big list of benefits. If you want a bare-bones insurance plan that
simply covers catastrophic events like a car accident or cancer you currently can't get
one. By boosting the benefits of every plan it
restricts competition and drives up prices by forcing smaller health insurers out of
the marketplace. Low-cost catastrophic plans that are normally
purchased by younger, healthier people are no longer available because of the ACA requirements. Introducing as many health insurers to the
marketplace as possible can drive down prices by encouraging businesses to compete to cut
costs. The ACA did the exact opposite: Less competition
and higher prices. Number 3: Encourage medical innovation. The cost to bring a new drug to market already
exceeds two and half billion dollars. And the ACA places an additional twenty-two
billion dollar tax burden on innovator drug companies, the same businesses that produce
lifesaving medications and cures for those in need. Punishing drug producers forces them to charge
even higher prices to make up for the lost money in research, development, and taxes. If we encourage, not punish drug makers it
will lead to more breakthroughs and lower costs–a win, win for all of us. As healthcare costs skyrocket, don't forget
that the free market is our best chance to rein them in.

29 comments

  1. The basic reason why healthcare is so expensive is due to the paradigm shift that occurred in the mid 80's when the HMO/PPO organizational structure replaced that of the churches and charities that owned the hospitals. Back then, hospitals were run from the ethos that basic care should be inexpensive and offered in a quality manner and in an environment where doctors and hospital admins had the final say about what care and medications the patient should receive.

    Now, some actuarial cost/benefit software program in a high rise in Minneapolis makes those decisions. The high price of care and medicine is artificially inflated and kept propped up by a coterie of insurance companies, manufacturers and government regulators, all of whom benefit when all participate in the scheme.

  2. I am no Communist, not by a long shot. But you can't solve everything by a free market. Imagine if the USA was organizing its army by hiring mercenaries on the free market. Yep,, that would not end well.

  3. Everyone ignores the elephant in the room.usa need public hospitals and insurance that can drive the prices down .europe does fine with a regulated private healthcare sector.lets face it when a system is shit

  4. We should have a late term abortion for people with pre-existing conditions. i mean, they're not viable right?

  5. Instead of arguing over free market vs non free market why don't we look at places that have a a comparable level of services and see how they do it?

    I personally don't think free-market is the answer but if there is a country with free market healthcare thats cheaper but the same I would like to look into it

  6. Amazing. Simply amazing. You correctly noticed the importance of competition in point 2. You correctly noticed the importance of encouraging innovation in point 3, yet you don't finish the thought. If you really want to do something to encourage pharmaceutical innovation, you need to do more than just let up on the taxes. You also need to make it possible to innovate without being sued into the poor house. In short, do something about the patent thicket, that prevents people from making significant improvements to existing drugs and treatments. Finish the thought.

  7. Big groups of greedy middlemen known as health insurance companies. That's why it's so expensive… Every other industrialized nation in the world can manage to deliver universal healthcare to it's people, but for America, one of the richest nations in the world…. It's somehow too expensive… Odd.

  8. This is propaganda. lower regulations never gets us anything good. Pharmasudical companies dont always pay for reserch government agencies do much of the reserch with tax payers money. this add is very ingenious dont fall for adds like this that make the Pharmasudical industry Out to be the victims while they are gauging the people and making billions.

  9. Wait, that why there had not been a medical innovation for a long time. I always thought that people are not smart enough or the disease just evolve.

  10. Medication in the US is two to six times higher than other countries. Healthcare procedures are about two to three times higher. The US has highest healthcare prices by 40% compared to the 2nd place. I still don't get why they can't control the costs.

  11. wtf dude i cant imagine shit like this. Meanwhile i litterllay call the ambulance because i dont want to go to the hospital by my own cause i dont want to spend That extra Gas and search for a parking Slot 😂 I Love Germany.

  12. What can I say. For a country that was founded by religion, its only ashame that one of the only solutions in a hospital is to pull the plug, moreover, hospitals will turn you away now even with insurance only because they are more concerned about getting paid than saving your life. I never understood the old saying that the root of all evil is money until health care has gotten the way it is today. It is just plain evil to allow a patient to get sicker and fix what they can AFFORD, instead of giving them what they need to cure to live to the fullest.

  13. As someone who works in the medical field I'll tell you one point good point they missed, they forgot that MANY of the senior citizens appointments are pointless. They make up the bulk of insured doctors office visits but dont really need to be there. Insurance companies should have allowance based plans so customers must be smart about how they use their coverage funding. This would stop people from going to pointless follow up visits

  14. NOBODY loves the Insurance Industry like our members of Congress. People are in danger because leadership in the US is dysfunctional. Whips and Leaders are the true crux of the corruption. A true disruptor in Congress. They were created during the height of Government corruption in 1899 (leaders) and 1900 (whips). They were NOT implemented by the framers of the Constitution or the Declaration of Independence. Congress is manipulated by Whips and Leaders to broker the bills in a profiteering manner to 501c's, corporations and other countries. The myth is Congress is a weak victim overpowered by the large money lobbyist. But the truth, Congress is the tyranny understanding they have a monopoly selling bills and are aggressive at it. You want a bill passed you have to come through them, so bring your American Express card. There is no defensible argument, Congress betrayed their Fiduciary duty. Whips and Leaders should have been eliminated with Antitrust in the early 1900's. Whips and Leaders front run our republic. This isn't a Democracy, it's not a Republic, it's a coup d'état and the Whips and Leaders are the party of guilt. This should be made into a documentary.

  15. This is why we have single-payer healthcare (we should). We shouldn’t rely on private health insurance. The best way to have cheaper healthcare is to have government healthcare. This way, no insurer can raise costs for healthcare. Obamacare is a disaster, we need a universal healthcare system.

  16. Nothing in this video will bring about real market competition. This is a corporate bailout disguised as a free market solution. Prager U you are better than this👎

  17. AcA was a attempt to make health insurance better for everybody it wasn’t perfect(No Legislation is) but people tend to try and bash it like insurance wasn’t high before my plan went up 20 dollars The real culprits are the insurance companies that put out this propaganda even if we disbanded the AcA and all its laws do you think insurance would go down i think NOT focus your frustration on the companies that raise your prices and not the thing that’s trying to help you

Add a Comment

Your email address will not be published. Required fields are marked *