Saturday, June 12, 2004

This interview is already a bit outdated, but I thought Newt had some very interesting things to say in his interview with C-SPAN. He is talking a lot about health care.

I do have one point of potential divergence with something he said in the first ten minutes of the interview. He talked about how much overcharging there is in the current healthcare system. Those that can pay (like those with insurance paying or with the government paying) tend to be charged more. This offsets the cost of those who can't afford to pay.

If we get to a system where people are able to self-audit their health spending (rather than having all payments made by an insurance company) the health care providers are still going to have to make the same amount of money to continue to pay the bills, so I don't think we will really see the massive reductions in costs Newt envisions. Instead, we will see poor people consuming less health care. I understand the benefits, but it is a tough pill to swallow.


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