Home Medical Care Subsidies: A vicious spiral

 

Our continuing, and worsening, problem with unaffordable medical care is caused, rather than solved, by ever-increasing government giveawarys to business, either directly or indirectly. The ACA is described as "insurance" but is in fact a subsidy in itself. As the government spent more on coverage, medical service prices soared in response, causing medical insurance premiums to rise in tandem, according to an economic principle known for decades: the law of supply and demand. This problem was only worsened by "temporary" COVID subsidies.

Here is a straightforward, albeit harsh, analogy: imagine a system in which the government copes with a widespread kidnapping problem by providing the families of kidnapping victims with the money to pay the ransom demanded by the kidnappers. For a while, it works, with some inevitable misery on the part of the victims. But the kidnapping is repeated, by more kidnappers with a demand for higher ransoms, as the financial advantages and lack of legal consequences of kidnapping are recognized. The government responds by increasing ransom benefits for the victims' families. Finally, so much kidnapping takes place and the government spends so much on these benefits that the economy collapses.

What is alarming is that most Americans seem to believe that the unaffordable medical care problem lies entirely with insurance companies and that it's the responsibility of our government to come across with payouts. All too many powerful people argue that all we need to do is to force everyone to buy a medical insurance plan. But this would be cruel and irresponsible if it weren't accompanied by government measures to curb what medical care providers (and insurers) charge (which is what makes socialized medicine work.) It does appear at this point that the medical care industry isn't just a part of our government; it controls our government.

How does the medical care industry control our government? For one thing, it controls TV news shows by sponsoring them and apparently requiring them to suppress coverage of non-insurance medical care industry problems. Because the general public hears about these expenses only in terms of medical insurance premiums and how some members of Congress won't bail them out, they are led to believe that the only solution is to put more pressure on Congress and the President to free up more money.

In the end, though, medical care providers would be the only winners, since insurance companies might only be trying to catch up. Perhaps some citizens know this but are afraid that their medical care will be cut off if they speak out. Or do they not recognize that medical care in this country is a business like any other?

Does this sound like a free country?

Copyright © 2025 by Dorothy E. Pugh.  All rights reserved.