i have recently learned the main reason for the high costs of doctor visits in this country. ready gene, it is because of Medicaid/Medicare.

an example.

before there was Medicaid/Medicare. the doctors in Dallas where charging 20 dollars a visit.

how ever the doctors in Waco where taking chickens for pay.

when Medicaid/Medicare came out they told all of the doctors that they would pay 20 per visit. so the doctor in Waco stopped taking chickens and started charging 20 per visit to everybody.

every year Medicaid/Medicare funding goes up an automatic 3%(or what ever the real percent is). this means that doctors are getting a pay raise of 3% every year. ie the price to go and see a doctor is going up fast.

the reason that medicines cost so much in this country and not in Canada is because, every other country on the planet has a profit cap on medicines. the people who make the medicines are in it to make a profit. partly so they can use that profit to come up with better medicines. and since the USA is the only country where they can make a real profit. they have to charge enough to make up for the lack of profit from the rest of the world.

in other words we are partly paying for the medicines in Canada.
Comments (Page 2)
on Jan 13, 2008
My collective insurance teacher actually explained to me the rise in medical cost:

People who have a health/medicine insurance that makes them pay a minimum, then cover the rest of the bill don't tend to look at the price they have to pay when they go to the doctor. They don't care if the M.D. prescribe them a 140$ item even if a 20$ generic could do (almost) the same work.

Also, pharmaceutical companies usually woo (but not bribe) M.D. to make them prescribe THEIR own medications over other's. So, there is some sort of collusion between the pharmaceutical industry and the people who prescribe.

That's how you end up with an amazing (artificial) rise in price: if you make "choose", but not make them pay. In canada, we have the same incrase in medicine price, since medicine is not covered except for the most basic coverage. But general healthcare cost don't increase as quickly as the U.S.'s, since MDs have an incentive to NOT take the most costly treatements, as opposed to the US's, where they simple make more profit out of it (either directly, or trough "generosities" of the provider)

It's not the inflation's working, it's the change of the prescribing habits of the MDs.