Wednesday, May 16, 2007

California Health.

Health costs continue to sore at double digit rates so that California companies have been cutting back on benefits or eliminating benefits altogether. Schwarzenegger and the Democrats are negotiating over plans to fund a universal system. Part of it would come from taxing business and part by fees on doctors and hospitals.

Of course, the problem is almost certainly runaway regulation and litigation combined with caps on numbers of doctors. Another issue is that health users have almost zero incentive to shop based on price and hypochondriacs are invariably fully funded to pursue their hobby. Nothing that is proposed will do anything about this. Kim Jong Il should be proud of our leaders.

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