Alison's Window

Sunday, November 15, 2009

Decline in Out of Pocket Health Care Spending Means More Out of YOUR Pocket Spending

According to the Washington Post, an analysis of the effect of cutting $500 billion from future Medicare spending indicates that "out-of-pocket spending would decline more than $200 billion by 2019, with the government picking up much of that."

Is this a naive observation or is it disingenuous? "The government" is we the taxpayer when referring to spending. So out-of-pocket spending is "picked up" by the government? That just means you are taxed more to provide the government with the funds to pay your medical expenses. So who cares, if the money goes to the same place, medical care?

Well, first the government collects the taxes - this costs administrative expenses. Then the government allocates the funds - this costs additional administrative expenses. Thirdly, the government decides where to spend the money. This costs you your freedom.

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