Link to a good blog on health care

Dave Winer has a good note on health care here.

I would add that the sole purpose of for-profit health care providers and insurance companies, just like those in any other industry, is to make a profit. Increasing profits means increasing sales, or services provided. Doesn't matter if the services are cost effective, or even work, as long as they turn a profit. Actually, as long as they don't get sued, the treatment can have a negative effect. There are many examples of this.

Doctors are afraid of lawsuits, plus they now perform many types of tests in-house, such as x-rays, blood tests, etc., so they have every incentive to perform every test and treatment that insurance will reimburse. Where is the decision made for cost effectiveness?

One other thing, Dave touches on, is the overall cost. I find that often, people make arguments in a debate designed to convince people that already agree with them. More often than not, liberals and conservatives think differently. If you want to convince a conservative, make a conservative argument (same with liberals). Dave mentions the cost of health care, but I want to expand on that.

In the US, most businesses of any size pay huge sums for employee health care. Sometimes, they compete with other US companies that do not offer insurance. They can keep better employees, but with a higher cost due their providing insurance. For highly skilled employees, its a no-brainer, the business has to provide insurance. But what about lower skilled jobs, where employee retention isn't so important?

Conservatives will say that we should let the companies battle it out in the marketplace. If the economic benefit to the company is greater than the cost of insurance, then companies offering insurance will win. If not, they lose. This is the classic Wal-mart vs. Safeway battle for grocery sales.

But what about international trade? How can US companies compete with foreign companies when the foreign companies have a lower cost of business, even if they have to pay a payroll tax for health care? In my opinion, conservatives should work to reduce the barriers to economic growth, and the cost of health insurance for employees is a significant barrier to growth, especially employment.