Market cannot cure what ails health care

October 12, 2008

As a practicing physician for almost 40 years, I read with sheer incredulity the column "Cut health costs through market innovation" (Commentary, Oct. 7).

The column advocates "using innovation to make health care cheaper and more accessible." But the basic reasons U.S. health care costs continue to rise each year at an alarming rate are the fact that we have an aging population and the continuing introduction of new, high-tech procedures and medications. Market innovation will not change these dynamics.

Indeed, some of the statements and recommendations in the article are mind-boggling. Here are just a few:

"Let's deregulate medical care so that providers can find innovative ways to deliver high-quality care cheaply."

Please note here how well deregulating the financial sector has succeeded.

"Universal coverage sounds appealing, but it means that government will be running the trains."

In fact, the government-run Medicare program spends 95 cents of every dollar on direct patient care and only 5 cents on administration. By comparison, the private medical insurance industry spends only 80 cents of every dollar on direct patient care and 20 cents of every dollar on administrative costs, which include million-dollar payouts to CEOs, dividends to stockholders and huge advertising budgets.

Universal coverage modeled after Medicare would free up $300 billion a year for direct patient care and provide basic health care coverage for all Americans.Dr. Leon ReinsteinBaltimore

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