Healthcare Models, Fascist and Socialist

Both the Affordable Care Act and the Republican alternative that just failed are fascist model healthcare systems.  In a fascist healthcare model lobbyists write the bill, lawmakers who they pay to support the bill, convince the public that it is a good deal. Congress and presidents are used as a means for the lobbyists clients to exempt themselves from free market forces,and raise profits to a higher level than they would be with free market restraints. The public which is a victim of this kind of bill remains bound by free market incentives and pays astronomical prices for healthcare and drugs.

Certain provisions of this type of bill appear appealing to the public but are traps with no escape hatches. I understand there is a movement among  Republicans to included more tort reform. Tort reform sounds good to the public because people picture doctors lowering prices because their legal costs are lower. There is no chance such a thing could happen. Doctors have no incentive lower prices but do appreciate the lower costs and increased income. Prices to the public continue to rise. Inclusion of tort reform in the Republican bill is reason enough alone to say no to the legislation.  As a rule of thumb, never relinquish a right in expectation of receiving a benefit.  Citizens who support tort reform are surrendering many of their rights to engage in civil litigation when they are harmed in the health care system.

When attorneys could freely sue doctors on behalf of clients, this provided a type  free market regulation of the entire health care system. Giving up rights in civil court has been a mistake in every state where it has taken place.

Chances are that a fascist model healthcare bill of of some kind will be passed in the near future. Be warned, there is nothing free market about any of these bills. Expect goodwill in healthcare to continue diminishing.  Goodwill does not occur magically from the kind nature of the human species. Goodwill evolves in free markets because vendors are highly motivated to please their customers.

Socialized medicine or single payer healthcare will also be proposed. Single payer is of course a regular socialist model. In a single payer system Doctors lose the incentive to treat patients because more patients does not translate into higher income. Healthcare costs could come down in theory  but would not because there is no incentive to economize. Healthcare would be less available because providers would try to maximize their income and treat as few patients as possible in doing so.  Socialized medicine would also cause further reductions in the level of good will. Goodwill alway disappears when free markets are dismantled. It makes since because free markets are the devices that create good will in the first place.

While healthcare in the U.S. is being taken further out of the free market realm, free market influences never disappear. In the short run patients will take the punishment and just pay up. Over time, alternatives will emerge. Overseas doctors will start offering Americans thorough  Skype consultations. Medical vacations will become more common. Doctors in Mexico may start cash practices close to the border to serve American patients. Many Texans already go to Mexican doctors. Healthcare is all products and services. Like any industries substitutes will emerge. The notion that the United States has the best doctors in the world is nothing but rubbish.

In the meantime, given that Americans don’t trust free market medicine, Healthcare will continue to worsen.

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