Monday, November 29, 2010

A full scale federal assault on the medical industry

That is what we can do, says Yglesias, get the IRS police, backed by sheriff, and go seize the medical equipment of doctors who refuse the commands.
The larger point is that there’s nothing stopping us from creating a de facto system of national price controls for what we pay to health care providers. There are a lot of reasons why we don’t do it, some good and some bad, but the option of “controlling health care costs” by telling the health care industry it needs to start charging prices that are closer to marginal cost will “work” fine. The whole industry is systematically dependent on explicit and implicit government subsidies (direct public spending, tax subsidies, patents, etc.) so there’s not some shortage of levers you could apply if you wanted to.
This is a different approach then the Obamacare waiver approach, so I won't say this is yet part of Obamacare.

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