Dr. Keith Smith explains why government mandated price transparency is a bad idea:
Back in 2006, Price Waterhouse Coopers did an excellent synopsis on what percentage of each healthcare dollar was spent on what. It was a fantastic breakdown, and it’s really difficult now, to find that old document on the internet. But today, I finally found the picture that I’ve been looking for! The breakdown isn’t much different today, so the picture still applies. Costs might even be heavier today on care vs. profit. But this visual, I’ve found to be very helpful, when trying to think through possible solutions to today’s health insurance cost crisis.
Take a look at this picture. What do you see? Given what you see, where do you think the problems with our healthcare system lie, and how would you propose to your congressmen and women to fix it?
My friend, Dr. Robert Nelson, has some suggestions, offered in his blog, The Sovereign Patient: When Did Health-Care Become One Word?