“As Economy Slows, So Do Laser Eye Surgeries”
Filed Under Uncategorized
This article discusses how laser eye surgeries are slowing alongside a slowing economy. Lasik surgery is not generally covered by health insurance. Thus, people have to pay out of their pockets. Because spending on these types of items are paid out of the pockets of consumers, this small corner of the healthcare world does not experience the 11% or more yearly increase in costs that the rest of the healthcare industry does which is covered by health insurance.
Healthcare prices would rise at the same rate as do food, clothing, furniture, and other normal prices were it not for:
1) Our third-party payer system where someone else pays your bills. (Since it’s largely “free” you consume as much healthcare as you want since you do not pay for most of it. Employers pay most of your healthcare costs. They thus pay you a lower salary each year (in real terms) to cover the costs of your increased spending. Your insurance company charges them (or you, if you pay out of pocket) more each year for your insurance because you go to the doctor as much as you want. Your insatiable demand allows them to keep raising prices)
2) The reduction in supply caused by the American Medical Association’s government-granted monopoly. (The AMA intentionally restricts the supply of medical licenses, doctors, and medical schools in the name of “safety” in order to earn themselves higher salaries)
3) The massive amount of demand created by government spending. (Socialist redistribution programs such as Medicaid, Medicare, The Veterans Health Administration, Prescription Drug Programs, TRICARE, State Children’s Health Insurance Program, and many others constitute dramatic artificial demand for services way above and beyond the quantity demand that would otherwise be the case if people paid for healthcare out of pocket)
Were it not for these factors, which all originate from government intervention and law, healthcare would be just another good at comparable prices to other goods.
This is the result of what you voted for!
Supporting material/additional reading:
http://www.mises.org/story/1588
http://www.mises.org/story/898
http://www.mises.org/story/1749
http://www.mises.org/econsense/ch20.asp
http://blog.mises.org/archives/005499.asp
Kel Kelly @ April 23, 2008