When we spend less than 10 percent of our own money on health care costs, one outcome is almost 100% inevitable: health care costs will continue to rise. The incentive to reduce cost is greatly reduced when someone else is paying most of the bill.
Tuesday, September 28, 2010
Spending Other People's Money
Is it any wonder health care costs continue to rise? Census data clearly shows the #1 reason why medical costs have risen, and will continue to rise: Our out-of-pocket payments for medical costs have been falling for the last fifty years, and will fall below 10% by 2017 according to projections.
When we spend less than 10 percent of our own money on health care costs, one outcome is almost 100% inevitable: health care costs will continue to rise. The incentive to reduce cost is greatly reduced when someone else is paying most of the bill.
When we spend less than 10 percent of our own money on health care costs, one outcome is almost 100% inevitable: health care costs will continue to rise. The incentive to reduce cost is greatly reduced when someone else is paying most of the bill.
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