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And that leads to perverse incentives; If you have no incentive to help control costs, then it falls upon the NHS to control costs through delays and denial of
by greedo 14y ago
And that leads to perverse incentives; If you have no incentive to help control costs, then it falls upon the NHS to control costs through delays and denial of service.
- epistasis 14y agoEmpirically, this is false. Perverse incentives and perverse pricing pervades the US system. Whereas the UK system provides equivalent health at half the cost. Certainly your thought is a common one, the idea that individuals can be incentivized to cut costs was the motivation behind high-deductible plans. High-deductible plans were initially priced much lower than they are now, because the insurance companies thought that individuals on those plans would control their costs much better. However, that was not observed, and the insurance companies have raised rates faster than with other plan types, and HDHPs are now not nearly as good deal as they once were. (At least in my area.)
- rdl 14y agoDidn't exactly that also happen with HMOs from 1973 onward (once they had a federal regulatory framework)? It seems like an underlying problem is that whenever a "cover somewhat less, save money, charge a huge amount less" plan is put in place, there are incentives in individual cases (through lobbying or whatever) to add coverage, killing the cost savings.