
by James A. Bacon
The cold-blooded killing of United Health CEO Brian Thompson has unleashed a wave of invective against health insurance companies. There is widespread sentiment that insurance companies (along with their much-detested brethren, the pharmaceutical companies) are the root of all evil in American healthcare. They make profits, goes the claim, by denying healthcare to people. They cause immeasurable human suffering. Medicare-for-all, they suggest, is the answer.
The U.S. healthcare system is indubitably a hideous mess. Health insurance companies contribute to that mess, but they are hardly the root cause of it. A single-payer healthcare system is no answer at all, just an invitation to more of the over-regulation, rent-seeking, and dysfunction that plagues the American political system.
The problem starts with the idea that Americans see “healthcare” as an entitlement. Denial of any healthcare procedure, regardless of cost or circumstance, is regarded as an affront to justice. The problem, given peoples’ unquenchable desire for health and longevity, is that demand for healthcare is effectively infinite. New pharmaceuticals and medical procedures have been introduced with great regularity, and they will continue to be. Ozembic. Artificial organs. Gene therapy. CAR-T cell therapy. Transgender therapy. Designer babies. It is a fundamental law of economics regardless of how a healthcare system is structured: Society cannot pay for all the healthcare that everyone wants. Healthcare must be rationed. The only question is how.
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