For a professor of economics and former vice chairman of the Federal Reserve, Alan Blinder certainly isn’t too … well, creative. He recently suggested that “health care just keeps getting more expensive relative to almost everything else.” Further he says “if we could somehow limit health care inflation to the overall inflation rate, the long-run budget problems would virtually vanish. The bad news is nobody knows how to do that.”
I offer two suggestions:
Follow Texas’ lead. Put a lid on medical lawsuits, lowering sky-high layered insurance costs. Cap the amounts that can be awarded. Watch pass-through costs fall dramatically.
Noting that medicine has become specialized and compartmentalized, fast track the restructuring of educational requirements to reflect more closely the exact scope of each procedure or specialty, reducing educational costs.
If Professor Blinder’s assessment is even close to being correct, it’s time to stand up to Washington, D.C.’s lawyers’ lobby and the American Medical Association.