Cheap medicine proves costly in patients’ lives

Because it is cheaper to let people die than to treat them, an obvious conflict of interest occurs when a single organization has the absolute power to both pay for health care and define it. Monopoly providers like the Canadian provincial health plans, the National Health Service, Medicare, and certain HMOs routinely use cheap medicine in order to save money. Their cost cutting strategies often emphasize older, less effective, pharmaceuticals, longer waits for care, dated equipment, and less training for personnel. Cheap medicine can cut costs, but it generally does so by delaying diagnosis, slowing recoveries, increasing morbidity, and hastening mortality.

SCHIP: Why Pay When You Can Get It For Free?

People supporting substantial expansions in government health entitlement programs like SCHIP, Medicaid, and state run insurance pools should be interested in some new results on crowd-out, the term used to describe the fact that expansions in government health programs encourage people to stop paying their own way.