First step toward bending medical utilization cost curve is not equating medical care with health care

The Republicans’ primary strategy is to shift more expense to individuals through high-deductible plans and Health Savings Accounts. They hope people will seek services less often if they have to pay more for it. That’s a prescription for illness.

Source: Partisan battles shouldn’t afflict good health care | The Sacramento Bee

This assumes medical care is subject to the economic principle of price elasticity that holds demand for a product or service moves inversely to its price. But medical care isn’t a commodity like food, clothing and shelter. It’s not consumed on a regular basis throughout life. People generally use it only when they need it, not because they want to buy it at the mall. In addition, the vast majority of people tend toward health with healthy lifestyles and don’t require preventative care.

To begin bending the medical utilization cost curve, the first step is to not regard it as a consumer commodity. The goal is to avoid having to need medical care in the first place by taking good care of our health. That’s truly preventative care. Medical care isn’t a substitute for health care — something only people can give to themselves. Reducing its cost or making it more accessible won’t automatically translate to lower overall spending on medical care.


Need a speaker or webinar presenter on the Affordable Care Act and the outlook for health care reform? Contact Pilot Healthcare Strategies Principal Fred Pilot by email or call 530-295-1473. 

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Frederick Pilot

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