Clipping Coupons for Health Care

There is not hotter issue in the US right now that health care reform.  I recently discovered the National Public Radio:  Planet Money podcast (on iTunes) and they have what I think is a really good episode explaining many of the nuances of various policy decisions.

They compare today's health insurance system to an "all you can eat buffet" in which insured health care consumers don't worry too much about how much the meal costs and they take more than they can eat to try each of the side items.  They then have a very civil debate between two very different points of view.  (A civil debate on health care is very rare indeed these days!)

1. One point of view is to raise the deductible to a really high number, maybe even as high as $50,000.  This would drive premiums way down and allow employers to give employees most of the $1200 per month or so that today's healthcare costs back in the form of a raise in pay.  When health care consumers have to pay for all their prescriptions, x-rays, broken bones, etc. out of their own pocket advocates say.. they will be much more selective about treatment options and avoid unnecessary extras. This would have the effect of lowering health care costs.
2. The other point of view is that most people do not have enough good information or knowledge in which to make informed choices about healthcare options or how to choose between providers.  People in this camp fear that if too much of the cost of day-to-day health care comes out of the consumer's pocket, consumers well delay seeking the care they need.  This has the potential of allowing disease to progress further to the point where the cost to treat is much higher and where perhaps the chances of a cure are less likely.

Do I dare tell you the punch line?  They report that studies have shown that both camps are correct.  Making costs more visible does drive down costs.  People also often delay seeking treatment longer when they pay more expenses out-of-pocket. 

This particular episode can be found here on the NPR site at Clipping Coupons For Health Care
or at iTunes.