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What Drives High Health Care Costs

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Published: March 6, 2019

The 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.

Audio excerpted from Uncommon Knowledge with Peter Robinson.

Discussion Questions

  1. Should the government play a role in providing Americans with health care? 
  2. What role should the marketplace play?

Additional Resources

  • Read “How To Cure Health Care” by Milton Friedman, available here.
  • In this 2005 interview, Milton Friedman discussed the ailing U.S. health-care system and proposed some remedies. Available here.
  • Health insurance helps many Americans purchase health care. So why is it so expensive, and how can we make it more affordable? Click here to find out.