Thursday, February 11, 2010

Opposite Trends in Health Spending

The Wall Street Journal notes that "government programs next year will account for more than half of all U.S. health-care spending".

Meanwhile, Greg Scandlen cites a report that "medical costs for individuals in account-based consumer-driven health plans (CDHPs) went down 26% over four years".

To the extent that free markets are allowed to operate in the CDHPs, the costs go down without loss of quality.

Meanwhile, government health spending is following a clearly unsustainable upward trend. As we all know, "if something can't go on forever it won't". The only question is how it will end -- in a controlled rational fashion, or a fiery crash.