Thursday, October 17, 2013

Enjoy the Decline

The more the government tries to tinker with the lives of of its citizens, the more perverse incentives result.

In screenwriting, a bad fundamental idea always leads to goofy patch-work solutions.  In the case of our healthcare system, there is a fundamental flaw of linking the majority of healthcare to the workplace.  This worked in a specific time in America and is simply no longer relevant to the global economy.  The residue, however, is nearly impossible to politically shake.  A quick understanding of how Singapore created their health system and you'll understand why they spend 10-15% less of their GDP on healthcare and get better outcomes -- basically you are forced to set aside money for your family into a "health plan."  When you go to the doctor, all services cost something.  In addition, the government subsidizes some health services to effect the overall cost (in theory, very smart because some health services are public issues - ie flu shots, other diseases, versus acute issues like broken bones).

And here is an interesting part -- the set aside money can also be used for retirement and housing.

It can easily be said this type of thing can only work in a small country versus a big, diverse one.  But if I'm the state of Oregon or North Carolina -- why do I not consider trying something like this?

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