Monday, August 24, 2009

"Investors Warm to Health-Care Overhaul" WSJ 8/24

Health care investors are relieved that the government is dropping government-run insurance plans and efforts to reign in drug care costs by negotiating terms with drug makers.

This story dramatizes a basic fact: What is good for investors is bad for those that receive health care and for those who pay for health care through their taxes.

Health care profits can occur only if health care providers control costs. Wow, is it possible that private, market-directed health care insurers might have more of an incentive to RATION care than government?

Yes. If one really looks at how profits are made, it does become clear that government has less of an incentive to ration health care than private providers do, because government is not aiming to profit from health care.

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