tag:blogger.com,1999:blog-12257856.post2703516067331280857..comments2024-01-20T12:46:47.740-05:00Comments on To Get Rich is Glorious: The health care cost explosionColinhttp://www.blogger.com/profile/03573575140584770666noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-12257856.post-88432321927120715382009-07-01T23:04:39.878-04:002009-07-01T23:04:39.878-04:00The statistical phenomena that is going on here is...The statistical phenomena that is going on here is called "confounding". That is to say, the lower costs paid by the consumer leads to higher consumption, but higher consumption leads to higher overall costs and a lower rate paid by the consumer. It becomes very difficult to ID the root cause of the effect.<br /><br />What the graph does tell us is that right now we can't tell if the consumer really feels the increased cost of health care is worth it. If the consumer paid a higher proportion of the care, we could then more clearly say that the current state of health care best optimizes the consumer's cost/benefit equation. As it now stands, Obama and others can bemoan the high cost of care, consumers nod their heads, and no one is forced to put their money where their mouth is and accept the consequences of lower cost care.Paradigm Shifterhttps://www.blogger.com/profile/16232345229349032268noreply@blogger.com