Health care costs are rising like a bad fever, and reform may not be enough of a cure. A balanced healthcare system is supported by three legs: quality of care, access to care and cost of care. Balancing cost, quality and access is tricky as they are all interrelated. Increase or reduce one and it affects the others. For example, it’s very difficult to lower costs without reducing access or quality. Increase access, and you will increase cost or lower quality.
In the United States, the first two legs are in relatively good condition. It’s the third one, cost, that is threatening to collapse. Right now, as the healthcare reform debate thunders on, the system seems ready for the critical list. Even with the new law, it seems that the same old problems will remain, at least for the next few years. So let’s take a careful look at what’s at stake. Read more from this month’s issue of Financial Planning magazine here…..