Private health insurance has built-in incentives to minimize its total overhead costs, while public health insurance constrains total budgets but ignores real social costs, including the time patients must wait for treatment and the lost productivity that results. A dollar spent in the U.S. buys a much higher standard of care than a dollar spent in other countries. National Health Service physicians spend an average of 5 minutes with each patient who usually wait hours to see them. In 1989, Ontarians had to wait seven months for heart surgery. Since 1960, health care spending in the United States has been rising at a slower rate than in other countries.
Some statistics overstate health care cost increases.
In 1984-1987, businesses increased the number of insured employees. Business payments for health services and supplies decreased . Casting government as better at cost containment is ludicrous. Widespread health insurance has made sophisticated care affordable, and we spend more because more can be done. In light of these facts, government can cut costs only by reducing access to expensive care or reducing quality.