"Insurance money feels a lot like "free money" to both patients and medical businesses. Hospitals and doctors can literally never spend enough to insure the survival of everyone. It's no wonder medical cost inflation is pricing medical services out of reach! Eventually patients are priced out of the insurance market and can no longer afford coverage or medical services at all. This is where we are today.Thailand has a cash-market medical business (not yet dominated by health insurance company spending or government spending) and their medical costs are from 5 to 10 times cheaper than the same services in the US.
So, most can agree that the system is broke because market and normal cost forces are not in play. I've made the argument in my blog that high deductible policies coupled with health savings plans put some consumer "skin in the game." You can understand this when you consider that the ultimate market pricing system would be medical care services are paid only by cash!"
Well, here's evidence of the trend that only worsens in the years ahead since the US government spending in the medical service market goes ever higher. See the following chart from David Stockman's Contra Corner: