Actually, in the case of healthcare, it is the government's interference that is at the heart of the problem. As I mentioned in my last post above, consumers are insulated from price changes given a third party is paying 85% of the bill. In the 60s, consumers paid closer to 50% and were thus incentivized to demand efficiency from providers. One of the reasons our health insurance plans cover so many services is due to government mandates. This, coupled with the government-induced employer-sponsored system, leads to an extremely uncompetitive environment fraught with Cadillac-style health insurance plans. Ever wonder why its so difficult to find an affordable, bare-bones health insurance plan?.

[Edited on September 20, 2008 at 10:05 PM. Reason : .]

9/20/2008 10:03:54 PM