Health-care choice

One of the reasons health-care in America is so expensive, is that lawsuits, regulation and other factors have prevented innovation and economies of scale. While I am no fan of the Canadian health-care system, once you get to the treatment, they are relatively efficient and proficient in their treatments. The mistake many make is to assume you have to have government control to get the economies of scale.

Consider this comparison, the U.S. has a vigorous passenger airline industry. Planes crash from time to time but most people are will to live with the small amount of risk. Now suppose that instead, we had regulations that there could only be one or two passengers in each plane, a sort of limousine of the sky rule. Air travel would be safer but very expensive. Because most health-care insurance is from employer sponsored group insurance, we get a one size fits all health policy, everyone has to pay their share of the limousine even if they don't ever ride in it.

Consumer driven health insurance would give individuals the power to make the trade-offs that are appropriate to their needs and comfort level. They could save money in couch or they could spend more for special service. The current paralysis over health-care policy gives us a system that few can afford and that satisfies none.