Just Who Should Control Your Healthcare Spending?

We have freedom to select whatever car, clothes, food, and homes we want.  Why can’t we choose what medical care we want?  Some people say that a free market in healthcare cannot exist as it is too complicated of a system.  This is far from the truth.  Medical care is a product we purchase, just like any other good or service. 

Most of American society does not understand that insurance was created for catastrophic injuries and major surgeries, not for office visits or medication.  When people are using their own money to make purchases, rather than spending other people’s money and not knowing the cost(pre-paid healthcare insurance), they will make smarter choices. MediBid allows people to comparison shop for their medical care, selecting the price and physician they wish. 

Just Who Should Control Your Healthcare Spending?

 

By Paul Hsieh, MD

What simple health care reform has reduced medical costs by up to 30%, while preserving quality of care? Hint: It’s not government price controls or mandatory health insurance. Rather, it’s letting patients decide how to spend their own health care dollars.

The RAND Corporation recently published a study of 360,000 families who used Health Savings Accounts (HSAs) to control their own spending on routine medical expenses. These HSAs were coupled with high-deductible insurance to cover unlikely-but-expensive serious accidents and illnesses.

According to health economist John Goodman: “Not only did spending go down by as much as 30 percent, there was no noticeable decrease in quality and no discernible difference in outcomes among various income groups.” Nor did patients with chronic conditions such as diabetes skimp on preventive care relative to healthier patients. The study authors estimate that widespread adoption of HSAs could reduce overall health costs by as much as $57 billion. Health economist Greg Scandlen thinks it could be much more.

This makes perfect sense. People are much more careful shoppers when their own money is on the line.

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