The Real Problem with Medicare: Robert Reich

Sunday, May 17, 2009

Medicare is “a monster,” says former Labor Secretary Robert Reich, but not one that can’t be fixed. Keeping Medicare from going bust before the end of the next decade will require slowing the rate of growth of medical costs, and that problem requires the federal government to offer a public option for Americans when choosing health insurance plans. The reason why a government-run program is so important, argues Reich, is “with a public option, the government can use its bargaining power with drug companies and suppliers of medical services to reduce prices.” And doing that will force private insurers to trim their costs while providing quality health coverage.

 
According to Reich, if you look closely at Medicare, and really the entire health insurance system, “the real problem isn’t even health-care costs; it’s a system that pushes up costs by rewarding inefficiency, causing unbelievable waste, pushing over-medication, providing inadequate prevention, over-using emergency rooms because many uninsured people can’t afford regular doctor checkups, and spending billions on advertising and marketing seeking to enroll healthy people and avoid sick ones.”
-Noel Brinkerhoff
 

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