Warren Buffett: Fix prices, then progress

Discussion in 'Too Hot for Swamp Gas' started by tim85, Sep 17, 2013.

  1. gatordowneast
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    gatordowneast Premium Member

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    We know how Obamacare shakes out. Look at Massachusetts (where the problem was not nearly as great). Mass has the highest insurance rates in the country (even with a younger population) and waiting time to see a Family doc is about 30 days in Boston.
  2. cjgator76
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    cjgator76 Well-Known Member

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    I don't follow the "so no competition" conclusion. They were competing (perhaps misguidedly) by expanding. Presumably they are still competing for patients and docs.
  3. LittleBlueLW
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    LittleBlueLW Well-Known Member

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    Quit fighting death. The grim reaper comes to us all!
  4. brainstorm
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    brainstorm Moderator VIP Member

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    Good points - that is why I said "potential". In a vacuum, reducing costs for providers of healthcare doesn't necessarily lead to lower prices they charge consumers. But, it does provide room to lower prices and still maintain a healthy profit.

    Certainly, the model of pricing used by Medicare and commercial insurance where UCR prices are determined, in part, by actual amount billed for the procedure by a large number of providers gives incentive to keep pricing as high as possible to drive up the allowables over time. Thus, decreasing costs would not have any real impact on the prices being charged.

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