What Drives High Health Care Costs: Friedman Fundamentals
with Milton Friedman via PolicyEdThe fundamental reason for high health care expenses is third-party payments. Most payments to physicians are made not by the patient but by a third-party — an insurance company or governmental body. By eliminating most third-party payments and restoring the role of insurance to protecting against major medical catastrophes, health care cost and spending can be reduced.
Mohamed El-Erian warns that the profession is ignoring its own failures and overlooking other disciplines' insights at its peril.