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Re: I don't know if to laugh or cry...
fredgraph.bmp
Ok the above chart is CPI inflation for healthcare as you can see the rate of change of yoy CPI in a declining trend since the 1970's has contracted sharply and has stabilized at the low range of historical CPI yoy rate of change of 2.5% to 5%. The sharp decrease since 1990 is due to the growth of managed care during that time. So managed care seems to work and has slowed down the growth in costs into a tighter 2.5% -5% range.
http://www.crisisstates.com/download...en(table2).pdf
The free market works in creating innovation as the above table shows the United States produces 47% of the world medical patents.
http://www.nybooks.com/articles/18802
Even Paul Krugman agrees (paragraph 6) that Universal Healthcare will lead in all cases to rationing. But he says we don't need worry about that now all we need to care about is insuring the most people for the least amount of money.
In a slow to negative growing economy the percentage of GDP allocated to healtcare naturally increases as it is a sticky cost and as the other components fall and Health Care remains flat its percentage of GDP naturally rises. The reason that it does not decline is that unemployed people are given healthcare as part of the social saftey net so demand keeps somewhat constent. Please see below link.
http://content.healthaffairs.org/cgi.../full/22/1/154
And please if you do not run a business with employees do not discount the costs of this plan to small business. It is a burden. The additional fixed labor cost (4-8%) as well as the 5.6 % tax increase on upper end earners coupled with all of the state and local tax increases will slow growth and job creation as well as eliminate many small companies. There is no magical margin fairy (unlike the GS magical money machine) that will increase margins by 10% to cover the costs. Healthcare costs will not go down they will stabilize at best. There has never been Healtcare Cost Deflation (yoy -CPI) in US History.
fredgraph.bmp
Ok the above chart is CPI inflation for healthcare as you can see the rate of change of yoy CPI in a declining trend since the 1970's has contracted sharply and has stabilized at the low range of historical CPI yoy rate of change of 2.5% to 5%. The sharp decrease since 1990 is due to the growth of managed care during that time. So managed care seems to work and has slowed down the growth in costs into a tighter 2.5% -5% range.
http://www.crisisstates.com/download...en(table2).pdf
The free market works in creating innovation as the above table shows the United States produces 47% of the world medical patents.
http://www.nybooks.com/articles/18802
Even Paul Krugman agrees (paragraph 6) that Universal Healthcare will lead in all cases to rationing. But he says we don't need worry about that now all we need to care about is insuring the most people for the least amount of money.
In a slow to negative growing economy the percentage of GDP allocated to healtcare naturally increases as it is a sticky cost and as the other components fall and Health Care remains flat its percentage of GDP naturally rises. The reason that it does not decline is that unemployed people are given healthcare as part of the social saftey net so demand keeps somewhat constent. Please see below link.
http://content.healthaffairs.org/cgi.../full/22/1/154
And please if you do not run a business with employees do not discount the costs of this plan to small business. It is a burden. The additional fixed labor cost (4-8%) as well as the 5.6 % tax increase on upper end earners coupled with all of the state and local tax increases will slow growth and job creation as well as eliminate many small companies. There is no magical margin fairy (unlike the GS magical money machine) that will increase margins by 10% to cover the costs. Healthcare costs will not go down they will stabilize at best. There has never been Healtcare Cost Deflation (yoy -CPI) in US History.
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