Well, how about that. It appears that privately insured Americans are using fewer medical services these days. Patient visits, drug prescriptions and procedures were down in the second quarter of 2010 compared to year-ago levels, reports the Wall Street Journal.
Weak demand could put downward pressure on spiraling health care costs and insurance premiums, the WSJ suggests. And what could be behind this remarkable change? Health economist Paul Ginsburg attributes some of the new behavior to the weak economy. But, he adds, “This could go beyond the recession. Being a less aggressive consumer of health care is here to stay.”
Perhaps this has something to do with it: More Americans are buying high-deductible health plans that make them bear a bigger share of the cost of their medical services. Eighteen million people have such plans compared to 13 million last year, according to the Journal. Believe it or not, people exercise more discretion and care as consumers when they have to pay for medical services themselves! Imagine that. They don’t go to the doctor as often — presumably cutting back on more frivolous trips — and they look for better deals when buying pharmaceuticals.
Most extraordinary! Who could have predicted it? Is there some body of thought that could explain why people consume more of a product or service when someone else is paying for it, and consume less when they pay for it thmselves? Could the field of economics shed some light on this perplexing question?
Finish reading this blog post on the Boomergeddon blog.
