Quick, gotta-run type meme note on containing health costs:
Now that we face mandated payment increases
which, given the structural dynamics of that gracious sector,
will surely produce lots and lots of even faster and higher price increases,
and little in the way of more medical services... it's prolly not too soon
to start talkin' price cap policy.
The proper method is already well understood:
we can set the overall price level change in the sector
at the level of the rest of the economy.
I.e. avoid excess sectoral inflation but allow
the intra-sector relative prices are to adjust among themselves.
markups (over input costs)
for our entire health services and products sector
are as amenable to control by pseudo-market mechanisms
as, say ... utility pollution!
what we need here is a national health sector
cap and trade system for markup over input costs.
Complicated to implement?
give me a team of med-poli-econs for advice,
and a little time to interwire the sectors'
and I'll run a tip-top cap and trade market
out of a medium-sized Washington hotel.
This great man --
-- Abba Lerner by name, provided all the necessary answers
to containing national medical costs 38 years ago: