That being said, this may be the first step towards that. I wonder what will happen when the private market realizes that making money off the health of citizens is no longer as profitable as it once used to be.
It is still incredibly profitable. Until government deals with the causes of increased healthcare costs with worse outcomes we aren't going to fix much of anything. Here are the issues that actually need to be addressed:
- tests being performed that aren't needed but are "expected"
- defensive medicine - over prescribing, over dictating, and covering your ass at the expensive of the time and money of the patient
- tort reform - until doctors are protected the costs will continue to rise - no other profession is expected to get it right every time - people make mistakes and until they are protected from some of those mistakes, there will be fewer doctors and higher costs. Alternatively if it was loser pays, that would fix a lot of the problems and frivolous lawsuits.
- Medicare/medicaid reimbursements - If the cost is 100, and insurance will pay 50, and medicare will only pay 20 how is that sustainable for the medical professionals? What that does is force overall costs higher to cover costs. So now the cost is 140, insurance will pay 100, and medicare/caid will pay 60. It is a very unsustainable system.... as we have seen.
The answer starts with education about the system. If people really understood why medical billing is done the way it is done, they would realize the need for reform. Your $20 Tylenol is paying for a lot. It isn't just the hospital screwing you. EMTALA requires that EVERYONE be seen in an Emergency room. What this does is create a free healthcare clinic for those without insurance. To cover that forced cost by the government, hospitals then spread out their loses over the entire patient population. Which ends up adding $15 to your Tylenol. There are lots of other reasons that the hospital has to increase costs on those with insurance, mainly due to the unreasonably low medicare/medicaid reimbursement rates.
The system is still broken. Obama tried to put a couple sticks over the rushing river. Without looking at the costs, doctor protections, and government requirements on the healthcare system, we are going to continue to deal with this flood of issues.