Mike Kueber's Blog

June 28, 2011

Exploding medical costs because of unlimited coverage

Do you wonder why health-insurance premiums are going up so fast?  President Obama likes to blame the insurance industry.  Two recent newspaper articles, however, suggest that there are other systemic intractable causes:

  1. An article in the NY Times today reports that there are three promising new drugs that can help a man with late-stage prostate cancer live an additional six
    months – i.e., his life expectancy can be increased from 18 months to 24 months.  The problem is that the drug therapy could cost as much as $500,000 over the course of treatment.  Of the potential patients, 80% are on Medicare, and although Medicare is running out of money, the article reports that the expensive treatment will probably be covered.
  2. An article in the NY Daily News last week reported that New York had become the 26th state to require “that health insurance cover the screening, diagnosis, and
    treatment of autism spectrum disorders.  Such coverage would include toddler screenings, speech, physical and occupational therapy – and behavioral treatment.”

Sarah Palin warned about Death Panels and Republicans rail against rationing, but there is no way to get medical costs under control unless we start limiting coverage.  America can’t afford unlimited coverage.