Yesterday, HHS released a memo on the impact of the House health reform legislation. It shows that national health expenditures would actually increase if the House bill is enacted. The Heritage Foundation has a great summary of the findings.
One other point on this subject. Both sides of the aisle often complain that Americans spend too much on health care compared to other countries. Now there is a valid point here: certain government policies encourage spending on health care that otherwise would not occur. Those perverse incentives should be changed.
But be careful of the broader import when government officials complain about health care spending. Part of the reason Americans spend more on health care than other
countries is this: we want good health care. Many of our government officials think that America should accept delays and rationing in order to limit health care spending to the level the government thinks desirable — but in America our health care system is still free enough that what people want actually makes a difference. For that reason America will still spend a greater percentage of its GDP on health care even if reforms are adopted, as they should be, to change the incentives which currently lead to spending that consumers don’t really want.
countries is this: we want good health care. Many of our government officials think that America should accept delays and rationing in order to limit health care spending to the level the government thinks desirable — but in America our health care system is still free enough that what people want actually makes a difference. For that reason America will still spend a greater percentage of its GDP on health care even if reforms are adopted, as they should be, to change the incentives which currently lead to spending that consumers don’t really want.
http://blog.heritage.org/2009/10/22/house-bill-raises-not-lowers-health-care-costs/
Tags: heath care